Two High-Earning Dividend Shares to Purchase Immediately for a Lifetime of Effortless Cash Flow
In these tumultuous market times, two robust companies – Brookfield Infrastructure Corporation and Realty Income – are presenting tantalizing opportunities for investors chasing growing dividend payments. The Federal Reserve slashed interest rates by a full point in 2024, yet this isn't triggering the usual response. Instead, 10-year Treasury note yields soared a staggering 27.9% since late September 2023, making even the most volatile dividend stocks less alluring.
However, if you're a long-term investor, this volatility could be your chance to nab dividend stocks at a bargain price. Two stocks that could fit the bill are Brookfield Infrastructure Corporation (BIPC) and Realty Income (O). These two powerhouses offer returns far more lucrative than the 4.3% yield from a 10-year Treasury note, with their payments likely to increase over the next decade and beyond.
Brookfield Infrastructure Corporation
If you're drawn to the promise of the artificial intelligence (AI) revolution without the risk of tech stocks, Brookefield Infrastructure might be your golden ticket. Its portfolio includes data centers and telecom towers, an essential cog in the AI wheel. As businesses increasingly rely on AI in their daily operations, the demand for the company's offerings is likely to skyrocket.
Brookfield Infrastructure doesn't need to invest in AI to be a delicious dividend prospect. At its current price, the stock boasts a well-supported dividend yield of 4.3%, and it's increased its payout by a respectable 25.3% over the past five years. Moreover, the world needs around $100 trillion to maintain, upgrade, and build infrastructure by 2040, securing at least another decade of robust dividend growth from this infrastructure titan.
Realty Income
Ranking among the largest REITs with a whopping $40.6 billion worth of buildings by the end of November, Realty Income offers a mouthwatering 6.1% dividend yield. With a lengthy history of inflation-proof dividend payouts, there's a strong likelihood that the yield will be much higher when you're ready to retire.
Realty Income brings stability to dividend investors by tethering tenants like Dollar General and Walgreens Boots Alliance with secure net leases. Its tenants cover costs related to taxes, maintenance, and uncertainties involved in real estate ownership, leaving Realty Income to focus on paying its loyal shareholders every month since 1969.
Since going public in 1994, Realty Income has never slacked off in raising its dividend payout. Even during the choppy waters of the past five years, Realty Income managed to increase its dividend by 13.3%. This company has a knack for clocking up double-digit growth in its annual dividend, making it a reliable income generator throughout your retirement.
Realty Income is also capturing the attention of European businesses, finally appreciating the advantages that public net lease REITs – like Realty Income – provide in financing their ventures. With such a small penetration in Europe (less than 0.1% of the addressable market), heaps of room for growth make Realty Income an exciting pick for expanding your income stream across the pond.
In the context of long-term investing, these market volatilities could be an opportunity to invest in dividend stocks like Brookfield Infrastructure Corporation (BIPC) and Realty Income, which offer higher yields and potential growth compared to 10-year Treasury notes. Brookfield Infrastructure Corporation's well-supported dividend yield of 4.3% and its increasing payouts make it an attractive option for dividend investors.
Realty Income, with its long history of inflation-proof dividend payouts and high 6.1% yield, is a stable choice for investors looking to secure high returns by retirement. The REIT's robust portfolio of buildings, tethered to reliable tenants like Dollar General and Walgreens Boots Alliance, provides the financial flexibility to continue raising its dividend payout, even during economic turbulence.
