I received a dividend for the first time while I was in graduate school. Since then, I’ve been obsessed with collecting dividends. I embarked on a journey to increase my dividend income with the ultimate goal of eventually making a living from this source of income.
I still have a way to go That’s why I buy dividend stocks as often as possible.3 things I can’t wait to buy in the new year Brookfield Infrastructure Partner (BIP -0.96%), Brookfield Renewable (BEP -0.51%) (BEPC -0.97%)When embridge (ENB -0.43%).
Incredible bargains now
The Brookfield Infrastructure Partners unit went bankrupt in 2022. Losing about a quarter of its value, he recently traded at a 52-week low.This is an economically equivalent Brookfield Infrastructure Corporation (BEPC -0.97%)Therefore, Brookfield Infrastructure Partners Now is the perfect time to buy Because it trades at a very cheap valuation (approximately 11x the money from operations or from operations) FFOMore) and an attractive dividend yield (4.7% recently).
This is a great value proposition for companies with the growth profile of Brookfield Infrastructure. Thanks to rising inflation, the completion of upcoming development projects, and recent acquisitions, Brookfield Infrastructure plans to increase his FFO per unit by 12% to 15% in 2023. Meanwhile, inflation, volume expansion with economic growth, and capital projects mean Brookfield plans to organically grow his FFO above the high end of its long-term target range of 6% to 9% per unit over the next few years. is. This will easily support Brookfield’s plans to grow high-yield payouts at an annual rate of 5% to 9%. The company has increased distribution for his 13th year in a row.
Brookfield Renewable is already one of my top passive income producers, but we plan to add quite a few positions in 2023.
Ahead of strong growth
Brookfield Infrastructure Renewable energy Brother Brookfield Renewable offers an equally attractive passive income stream. The unit plunges more than 35% in 2022, bringing him an attractive 4.6%. Its big yield is one of the many factors that make it look that way. smart buy in 2023.
The company has four growth drivers, including inflation, rising power prices, development projects and M&A, and should see annual FFO per share growth of over 10% through 2027. FFO’s annual growth rate is 8%. Meanwhile, the company has an extensive development pipeline, strong acquisition track record, and a first-class balance sheet. These factors could drive as much as 20% annual growth.
This outlook readily supports Brookfield Renewable’s plan to increase its dividend by 5% to 9% annually. It will continue its winning streak. The company has increased its dividend by at least 5% each year for the past 11 consecutive years. This combination of low income and growth is attractive. As such, I plan to add positions early in the new year.
Fuel to continuously grow huge payouts
Energy infrastructure giant Enbridge currently offers a hefty dividend yield of 6.8%. Its huge dividend is on one of the most sustainable foundations in the energy sector.
Enbridge’s pipeline and utility asset diversification businesses generate stable cash flow. Meanwhile, the company pays a reasonable amount (65% through dividends) and is able to retain billions of dollars each year to grow its energy infrastructure business. Enbridge also has the best balance sheet.
The company currently has a multi-billion dollar backlog of projects under construction, including new natural gas pipelines, export capacity and renewable energy facilities. These projects must increase cash flow per share by 5% to 7% annually through at least 2024. This should support continued dividend growth.embridge recently gave another raise to an investorDividend has increased for 28 consecutive years. We have plenty of fuel to keep growing and we can’t wait to increase our exposure to Enbridge’s big dividends.
Activation of unearned income
Brookfield Renewable, Brookfield Infrastructure, and Enbridge have everything I look for in a dividend stock investment. They pay above average dividends on a sustainable foundation that should continue to grow over the next few years. As such, they provide me with a steadily increasing passive income stream that helps me reach my goals faster.
Matthew DiLallo has held positions at Brookfield Infrastructure Partners, Brookfield Renewable, Brookfield Renewable Partners and Enbridge. The Motley Fool US Headquarters Brookfield He invests in and recommends Renewable and Enbridge. The Motley Fool recommends Brookfield Infrastructure Partners and Brookfield Renewable Partners. The Motley Fool’s U.S. headquarters has a disclosure policy.