Ah, the world of dividend stocks! Investing in these little golden eggs is nearly always a savvy move-especially when it comes down to companies that keep doling out those sweet, sweet dividends like a generous grandparent at a birthday party. Historically, playing with dividend stocks? Well, let’s just say they’ve painted the town red compared to the non-dividend riffraff, outperforming them by more than two-to-one over the long haul. Grab your $1,000; we’re off to see the dividends!
Allow me to present the illustrious trio: Brookfield Infrastructure (BIPC) (BIP), PepsiCo (PEP), and the illustrious VICI Properties (VICI). These companies have excellent records of raising their dividend payments like a magician pulling a rabbit-or maybe a cash cow-out of a hat! With growth shimmering on the horizon, I wouldn’t hesitate to invest a crisp $1,000 into any one of them right now-cue the confetti!
Strong growth ahead
Brookfield Infrastructure has been tossing dividends around like confetti for 16 glorious years in a row-every year since it hit the stage! The global infrastructure operator has upped its payout at a spicy 9% compound annual rate. Currently, you could be sitting pretty with a 4.2% dividend yield. Let’s put on our thinking caps: a $1,000 investment in Brookfield would line your pockets with about $42 of annual dividend income! Ka-ching!
And how do they manage this magic trick? 85% of Brookfield’s funds from operations (FFO) are like that reliable friend who always shows up: long-term contracts and government-regulated rate structures. The cherry on top? Most of these rates are tagged to inflation-it’s like getting a raise, even when no one’s watching. They dish out only 60% to 70% of their stable cash flow as dividends-keeping some on the side for expansion projects, like a squirrel saving nuts for winter.
Brookfield is seeing a convergence of inflation-driven rate increases, growth over at the global economy café, and some snazzy expansion projects. They say FFO per share might grow by 6% to 9% each year, topped off with acquisitions that could drive FFO per share growth over 10% annually! Buckle your seatbelts; this rollercoaster is just getting started with expected dividend increases of 5% to 9% each year-hold on to your hats!
Satisfying investors’ thirst for dividends for decades
Then we’ve got the almighty PepsiCo, which has been raising dividends like an all-you-can-eat buffet for 53 straight years! You bet they’re part of the ‘Dividend Kings’ club-those select few who treat investors to 50-plus consecutive years of annual dividend increases. Our favorite beverage and snack titan has cranked up its dividend at a delightful 7.5% compound annual rate over the past 15 years, with its current yield more refreshing than a cold drink on a summer’s day at a handsome 4%.
The company has set its sights on organic revenue growth of 4% to 6% per year, paired with core earnings-per-share growth that flirts with high single digits. PepsiCo is all-in on innovation, pouring cash into product development, expanding manufacturing capacity, digitalization-heck, they might even be working on a beverage that brews itself!
To satisfy our ever-evolving tastes, they’ve been transitioning to healthier drink and snack options faster than you can say “no calorie!” Their secret weapon? Strategic acquisitions like that fast-tracked prebiotic soda brand Poppi! Folks, these moves should keep pouring dividends your way, so keep those cups raised!
A low-risk gamble on a growing dividend
And finally, we arrive at VICI Properties, which recently celebrated its eighth consecutive annual dividend increase-every year, like clockwork! This REIT has upped its payout with a sprightly 6.6% compound annual rate since inception, leaving its peers in the dust at a measly 2.3% average growth rate. With a current dividend yield at 5.7%, it may just be the bright spot on your financial landscape.
What’s the magic behind this? VICI owns a robust portfolio of experiential properties secured by long-term triple net leases, meaning that its tenants cover operating costs like real estate taxes and routine maintenance-talk about a low-stress tenant situation! Their lease structure is only getting better: 42% of their leases adjust rents according to inflation, set to zoom up to 90% by 2035! The result? A reliable and steadily rising stream of rental income-like finding a dollar bill in your winter coat!
VICI’s dividend payout strategy is sensible too, distributing only about 75% of stable cash flow. This leaves enough to invest in additional income-generating properties-recently, they agreed to fund up to $510 million for the Mono Casino and Resort development! And don’t get me started on their $450 million investment into One Beverly Hills-VICI is on a roll, and their rising rents should ensure those dividends keep climbing!
Great dividend stocks to buy right now
So, dear friends and fellow adventurers of the financial realm, Brookfield Infrastructure, PepsiCo, and VICI Properties all stand tall with resilient cash flows paired with expansion plans that sing a glittering song of dividends. That magical blend of sustainability and growth is why I’d confidently invest my $1,000 into any one of them-right now! Now where’s my checkbook? Time to go shopping for dividends! 🤑
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2025-09-23 04:25