After a short rebound, Nasdaq Composite (Nasdaqindex: ^ixix) I was immersed in the realm of corrections regarding the fear of new tariffs and trade tensions. Investors looking to rule out noise may want to consider stocks paying dividends and exchange trade funds (ETFs).
Dividends are a simple and effective way to collect passive income without worrying about what the stock is doing. Here's why these three miscellaneous fool contributors think Brookfield Infrastructure (VIP -0.52%)) (BIPC 0.03%)), target (TGT) 0.68%)),and Global X MLP ETF (MLPA) -0.64%)) It stands out as the top buys now for dividend investors.
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Use Brookfield Infrastructure to build a stronger passive income stream
Scott Levine (Brookfield Infrastructure): With over 8% since its launch in 2025, Brookfield Infrastructure Stock hasn't given investors so much to celebrate this year. But for dividend-hunger investors, this should be suitable for them as it offers a great opportunity to pick up this infrastructure stock, with a forward yield of 5.7%, discounting its past valuations.
Potential investors may find dips in the confusion of stocks in Brookfield Infrastructure, but it is important to understand the nature of the company's business. Operational utilities and energy, transportation and data assets.
Through the management of these assets in the US, Europe and Asia Pacific, Brookfield Infrastructure generates stable and grown cash flow. For example, from 2009 to 2024, Brookfield increased its funding from its operations at a combined annual growth rate (CAGR) of 14%.
Additionally, consistently growing cash flow allows management to plan capital expenditures accordingly, such as distributions to investors and acquisitions, the latter adding cash flow growth. Management said the three acquisitions that closed last year provide $150 million in funding each year. Also, there are a lot of growth opportunities remaining with the backlog of approximately $8 billion in the project.
The company's distribution had a CAGR of 9% from 2009 to 2024, indicating a consistent interest in the management in returning capital to shareholders. Now is the best time to click on the buy button. Brookfield Infrastructure Stock currently trades at 2.8 times operating cash flow, with a five-year cash flow discount of 4.1.
Target has high yields and increased dividends over decades
Daniel Folver (target): Target Stock is hovering at its five-year low, completely waiving any profits it can earn during the pandemic when sales and revenues skyrocket and stocks hit an all-time high of over $260 per share.
Targets have proven vulnerable to consumer spending pullbacks. They are struggling to offset higher costs and manage their inventory. The combination of self-harm and a challenging economic cycle led to many investors being run for the exit. However, there is a reason to believe that the sale is overdue.
For starters, management implements clear and purposeful turnaround plans. It starts by bringing your business back to its roots by focusing on the in-store shopping experience. We are reviving “Tar-Zhay” magic by making it a destination for essentials and specialized items.
Retailers are expected to achieve revenue growth of $15 billion by 2030 by improving operations, expanding compensation programs and driving customer engagement.
I want to provide buyers with items that cannot be obtained in such places. Walmart (NYSE: WMT) While limiting competition from high-end products and apparel. However, that strategy doesn't work well in the e-commerce world. Online shopping is not about experience, but about price.
Walmart has been a huge success in online ordering and delivery through Walmart+, as even the e-commerce giants can compete for price and convenience. Amazon. Target has also invested heavily in building e-commerce, but has not been very successful.
The company has many challenges, but its strategy makes a lot of sense and its strengths. Given the over-praising and under-reviewing habits of recent years, investors will not be able to give their targets the benefit of doubt until their strategy is successful.
In the meantime, investors can buy the stock at a low price of 11.7 and a return rate. Target's dividend yield was 4.3%, with payments increasing in 53 years. The rating is close to its lowest level in 10 years, and its yield is close to its highest level in 10 years.
Stocks are ideally suited for valuable investors looking to boost passive income flows. Also, target forecasts will basically not grow next year, so they will simply provide the right results to exceed expectations.
This ETF exposes to high-yield energy pipelines and storage companies' collections
Lee Samaha (Global X MLP ETF): President Trump has focused on ensuring energy independence and encouraging domestic energy production, and is fully seasoned with the case of investing in this high-yield exchange fund. Global X MLP ETF is investing in Master Limited Partnerships (MLPS) in the Midstream Pipeline and Storage Facility sector.
Therefore, the key to the stock's growth outlook in this ETF is the volume growth of US energy (such as oil, gas, LNG) whether for domestic use or exports through terminals. If the Trump administration succeeds in encouraging an increase in domestic energy production, the ETF's MLP will become a beneficiary as volumes tend to increase and customers tend to do well when they sign up for long-term deals.
MLPs do not necessarily require higher energy prices. They need a volume tied to the current administration's objectives. In addition to promoting energy production, the administration also encourages the construction/expansion environment of pipelines.
ETF currently owns 20 strains containing the well-known high-yield MLP Energy Transfer, Enterprise Product Partnersand Plains All Americansall major players in the US mid-range market. As a result, the fund helps investors to reduce stock-specific risks and be exposed to mid-class themes while spreading multiple holdings.
With the current yield at 6.8% and the total cost ratio at 0.45%, ETFs represent a low-cost, reliable way to invest in designated policy objectives of the current administration.
