Two Notable Dividend Stocks Providing More Than 3% Yield, Attracting Income-Oriented Investors for Long-Term Ownership and Retention.
Investors in search of ways to enhance their passive income streams have two high-yield dividend payers to consider: Brookfield Infrastructure Corp. (BIPC) and W.P. Carey (WPC). Both stocks offer yields above 3%, with a history of increasing dividends and strong potential for future growth.
1. Brookfield Infrastructure Corporation
Brookfield Infrastructure is a powerhouse in transporting energy, data, and people. Its vast portfolio includes 25,600 km of pipelines, 2,900 km of power transmission lines, 140 data centers, 54,000 km of fiber optics, and hundreds of thousands of tower sites. Its stance on infrastructure isn't dull or old-fashioned – instead, it focuses on assets like 5G towers, electricity transmission lines, data centers, and fiber optic connections, whose demand grows with our increasing reliance on data.
Currently, about 60% of its funds from operations (FFO), a proxy for earnings, are poised to grow in relation to our global data demand surge. Brookfield Infrastructure aims to increase its dividend payout between 5% and 9% annually. The company's Q3 FFO from its data segment swelled 29% year over year, while a recent acquisition boosted its transport segment's Q3 FFO by 50% year over year.
At the moment, Brookfield Infrastructure offers a 3.8% dividend yield, with the annualized payout set at $1.62 per share. With its dividend securely funded, investors can anticipate a series of notable payout increases over the coming years.
2. W.P. Carey
W.P. Carey is a real estate investment trust (REIT) offering a substantial 6.4% dividend yield that could rise even further. REITs like W.P. Carey are renowned for their highly predictable cash flows thanks to net leases, which transfer ownership's variable costs to tenants.
W.P. Carey reduced its payout following the 2023 spinoff of its office building segment. Although the spinoff helped bolster the REIT's cash reserves, some cautious investors still harbor concerns about potential future dividend reductions.
However, W.P. Carey is more likely to maintain or lift its payout rather than cut it. In 2024, the REIT augmented its portfolio with $1.6 billion in investments. Its strong cash position and continued investment efforts ensure a robust future.
In October, W.P. Carey predicted 2024 adjusted FFO to fall within a $4.65 to $4.71 per share range. This high yield and the REIT's strong growth potential make it an attractive addition to diverse portfolios.
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- For those interested in investing in infrastructure, Brookfield Infrastructure Corp.'s focus on future-proof assets such as 5G towers and fiber optic connections could be an attractive prospect, considering its strong financial performance and dividend growth potential.
- While W.P. Carey's dividend yield is currently at 6.4%, some investors may consider the potential reduction following the 2023 spinoff a risk. However, the REIT's significant investment in 2024 and strong financial position suggest a higher likelihood of maintaining or increasing its dividend payout, making it an intriguing option for finance-conscious investors seeking high returns.
