I’m invested in a variety of stocks, primarily focusing on those that pay dividends, as I’m keen on generating passive income. Historically, dividend stocks have outperformed non-dividend stocks, which is another reason I favor them.
My top three Brookfield Infrastructure (NYSE:BIPC, NYSE:BIP), Enterprise Products Partners (NYSE:EPD), and Realty Income (NYSE:O). I currently hold sizeable positions in each but wouldn’t hesitate to increase my investments in them. Here’s my reasoning:
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In my opinion, Brookfield Infrastructure exemplifies what I seek in a solid dividend holding. It boasts consistently reliable cash flows, currently yielding about 4.8%. Roughly 85% of its revenue comes from long-term fixed-rate contracts or government-regulated frameworks designed to protect earnings against inflation.
The company’s financial health is equally impressive. With a payout ratio between 60% and 70% of stable cash flow and a robust investment-grade balance sheet, Brookfield Infrastructure can flexibly sustain both business growth and dividend payments.
Looking ahead, the company’s cash flow per share is projected to rise by over 10% annually, fueled by inflation-adjusted rate hikes, various expansion ventures, and potential acquisitions. Such growth supports a dividend increase of about 5% to 9% yearly. It’s worth noting that Brookfield has raised its dividend for 16 straight years, averaging 9% each year.
Enterprise Products Partners is another strong contender with solid earnings. As a Master Limited Partnership (MLP), it currently offers a yield of 5.6%. Impressively, this company has increased its output volume for 27 consecutive years.
The energy midstream MLP is in a robust position, consistently boosting high-yield dividends due to a strong financial foundation. Its cash flow is underpinned by long-term contracts and government-regulated fees, generating enough cash flow last year to cover distributions 1.7 times over. This allows the company to reinvest a significant portion of its earnings. Its balance sheet is among the strongest in its sector.
Enterprise Products Partners also completed $6 billion in growth projects in the latter half of the previous year, with anticipated cash flow increases from these projects projected by 2026. Additionally, the firm is working on another $4.8 billion expansion, expected to drive further growth.
Realty Income stands out as an excellent income stock for me, functioning as a Real Estate Investment Trust (REIT). Its monthly dividends yield currently sits at 5.3%, with consistent increases over time. Since its public debut in 1994, Realty Income has raised its dividends 134 times—remarkable longevity in this arena—and has registered an annual growth rate of 4.2% over 31 consecutive years.
With a diversified real estate portfolio secured by long-term triple net leases, this structure ensures stable cash flows, as all associated property costs are passed on to the tenants. Moreover, REITs maintain conservative dividend payout ratios, around 75%, alongside strong balance sheets, facilitating further investment in income-generating properties.
This year, Realty Income plans to invest $8 billion for real estate portfolio expansion, seizing significant investment opportunities highlighted by an estimated $14 trillion potential in net lease real estate across the U.S. and Europe.
Brookfield Infrastructure, Enterprise Products Partners, and Realty Income possess all the traits I prioritize in a dividend stock. They are well-established, provide attractive yields, and appear set for continued growth. Thus, given the opportunity, I wouldn’t hesitate to increase my stakes in any of them.
It’s important to note, however, that before buying into Enterprise Products Partners, there are some considerations…
Analysts from a well-known investment team have compiled a list of what they regard as the 10 best stocks to invest in right now, which notably does not include Enterprise Products Partners. These selected stocks are thought to hold significant potential for impressive returns over the coming years.
Now, I should mention that if you had invested $1,000 in Netflix back when it was recommended, your return would be astonishing—over $503,000! Similarly, Nvidia would have seen a return of over $1 million if invested at the time of recommendation.
The stock advisor has shown an average return of 884%, vastly surpassing the S&P 500’s 179% gain, indicating remarkable market outperformance.
It’s wise to keep an eye on the latest top 10 stock list.
Note: Stock advisor returns will be reported on March 29, 2026.
This information points to the perspectives of a financial analyst experienced with Brookfield Infrastructure, and other related partnerships.
I would consider significantly increasing my investment in these three dividend stocks.
