If you’re into dividend investing and have, say, $1,000 parked in your portfolio, it might feel pretty frustrating right now. The S&P 500 index yield is a mere 1.2% today, indicating that finding appealing dividend stocks can be quite a challenge. But don’t lose hope—smart, high-yield stocks still exist. Here are two intriguing choices:
Brookfield Asset Management: A Hidden Gem for Dividend Growth
Brookfield Asset Management has a decent dividend yield of 3.2%. While this yield is significantly higher than the market average, the real draw here is its potential for dividend growth. The company anticipates a 15% increase in dividends, aiming to maintain that growth rate through the end of the decade.
Brookfield plans to achieve this by dramatically boosting its fee revenue from managed assets, which is currently around $550 billion and is projected to hit $1.1 trillion by 2030. The overall asset classes they compete in—like renewable power, infrastructure, private equity, and real estate—are expected to expand considerably. This expanding asset base should bolster their capacity to grow dividends substantially.
Of course, there are risks to keep in mind. Market dynamics play a crucial role in Brookfield’s ability to gather assets. However, much of what they deal with falls under alternative assets, which is a growing area separate from traditional Wall Street trends. For those on the hunt for appealing yields and dividend growth, Brookfield Asset Management is certainly worth considering. You could acquire around 18 shares for your $1,000.
Real Estate Income: Satisfying Stability and High Yields
On the other hand, not every dividend investor is after rapid growth. Some prefer hefty yields, like the 5.6% offered by Real Estate Income. The key is to strike a balance between yield and safety; chasing after high yields can sometimes lead to risks of dividend cuts. Fortunately, that’s rare with Real Estate Income from their real estate investment trusts (REITs).
Real Estate Income boasts an investment-grade balance sheet backing a diverse portfolio of net lease properties—where tenants cover most operating costs. In the first quarter of 2025, their Funds from Operations (FFO) payment rates hovered around 75%. This suggests that they have enough room to weather tough times before even considering cuts.
With 30 consecutive years of annual dividend hikes, another increase seems likely. However, keep in mind that the average increase during this period was about 4%, so you won’t see explosive dividend growth. Still, steady, moderate gains should appeal to investors looking to optimize their portfolio’s revenue. You could buy about 17 shares with your $1,000.
Wise Investors Look Beyond the Headlines
The S&P 500 is trading close to an all-time high, and dividend yields are hovering near historic lows. If you have $1,000 or even $100,000 to invest in dividend stocks, don’t get discouraged and settle for cash. Digging a bit deeper can uncover solid dividend stocks. Brookfield Asset Management represents a compelling growth story while Real Estate Income offers reliable high yields with a history of steady increases. One of these options might just align with what you’re looking for.
