Fuel Your Passive Income: 2 Top Dividend Stocks to Consider this December
Looking for steady, reliable income streams? Dividend stocks are a fantastic option, offering a consistent flow of passive income alongside potential for long-term growth. Two current market favorites tipped by The Motley Fool’s Matt DiLallo are Brookfield Infrastructure (BIP)(BIPC) and Enbridge (ENB).
Brookfield Infrastructure: A Dividend Machine
This global infrastructure operator boasts an impressive track record of dividend growth, with 15 consecutive years of increases. That dedication to increasing shareholder payouts generates a nearly 4% yield, significantly outpacing the S&P 500’s 1.2% offering.
Reasons to Buy:
- Stable Income: Brookfield’s business model relies on 90% contracted or regulated assets, with 70% possessing no volume or price exposure.
- Inflation Hedge: 85% of earnings are indexed to or protected from inflation, ensuring consistent cash flow.
- Growth Potential: DiLallo highlights ambitious expansion plans, including data centers, semiconductor facilities, utility connections, and midstream expansions, promising future dividend growth.
Enbridge: A Dividend Titan
With a 30-year streak of dividend increases, Enbridge stands as a defensive powerhouse in the energy sector. It offers an enticing dividend yield exceeding 6%, fueled by its stable cost-of-service or contractually obligated earnings (98%).
Why Invest?
- Dividend Reliability: Enbridge’s predictable earnings ensure consistent dividend payments.
- Resilient Business Model: Their cost-of-service structure reduces volatility.
- Positioned for Growth: The company commits to annual financial guidance achievement and has a massive backlog of secured expansion projects in oil terminals, gas pipelines, and renewable energy.
Both Brookfield Infrastructure and Enbridge deliver solid growth potential alongside their high yields, making them compelling investments for investors seeking passive income and long-term gains.
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