Investing involves risk. However, some investments carry much less risk than others. Companies that generate contractually guaranteed revenues, have a strong financial profile, and boast a clearly visible growth profile tend to be at the lower end of the risk spectrum.
Brookfield Infrastructure(NYSE:BIPC)(NYSE:BIP), NextEra Energy(NYSE: NEE)And wiki properties(NYSE:VICI) They all have qualities that enable them to pay growing dividends. Their combination of income, financial strength and growth makes them as close to a sure thing as you will find in stock investing.
Will AI create the world’s first trillionaire? Our team recently released a report on a little-known company dubbed an “essential monopoly” that provides critical technology needed by both Nvidia and Intel. continue “
Image Source: Getty Images.
Brookfield Infrastructure operates a globally diversified portfolio of utility, midstream, transport and data infrastructure assets. Most of its businesses operate under highly contracted or regulated structures (85% of its funds from operations or FFO) with very long tenures (nine years on average). As a result, it arises Very Stable cash flow (only 5% is market sensitive), which benefits from inflation (in line with 70% inflation).
The financial profile of the company is strong. Brookfield pays out 60% to 70% of its steady cash flow in dividends (current yield of 4.3%). It also has a healthy balance sheet (BBB+ credit rating). The company’s financial flexibility enables it to invest in organic expansion projects and make acquisitions to grow its operations and earnings.
Brookfield currently has more than $9 billion of organic expansion projects expected to be completed over the next three years, including multiple data centers around the world and two U.S. semiconductor foundries. Additionally, Brookfield regularly recycles capital by selling mature businesses and reinvesting the proceeds in new investments with higher returns (last year it secured $1.5 billion of new investments). The company’s multiple growth drivers should support FFO per share growth of more than 10% per annum and dividend growth of 5% to 9% per annum. Brookfield has increased its dividend for 16 consecutive years.
NextEra Energy operates the nation’s largest company electric utility (FPL) and a leading clean energy infrastructure development platform (NextEra Energy Resources). FPL generates stable government-regulated revenues while the Energy Resources segment generates stable cash flow by selling power to other utilities and large corporations under long-term, fixed-rate power purchase agreements.
The energy company has a conservative dividend payout ratio and a top-tier balance sheet (Baa/A- credit rating). This gives it the financial flexibility to invest in expanding its operations.
NextEra Energy sees the potential to invest up to $325 billion in capital expenditures by 2032, including new construction Renewable energy Capacity, investment in data center hubs and construction of power transmission lines. This investment level should support annual adjusted earnings-per-share growth of more than 8% during that time frame. This should enable NextEra to raise its 2.7%-yielding dividend (6% annual growth target for 2027 and 2028), which it has done for more than 30 years.
Vicky Properties is a real estate investment trust (REIT). It invests in experiential real estate including gaming, hospitality, wellness, entertainment and leisure destinations. It leases its owned properties to high-quality operating companies under very long-term triple-net leases (weighted-average remaining lease term of approximately 40 years). Vicky Properties also invests in real estate backed loans. These investments generate very stable income.
The REIT pays out about 75% of its adjusted FFO in dividends (current yield of 6.3%), keeping the rest for reinvestment in new experiential real estate. It also has a solid investment-grade balance sheet, with its leverage ratio currently at the lower end of its target range.
Vici Properties’ leases are increasing rents at inflation-linked rates (42% of its leases in 2026, rising to 90% by 2035). As a result, its existing portfolio should generate stable and steadily growing rental income. Meanwhile, Vici Properties regularly invests in new properties through existing partnerships. It has an option to acquire multiple assets from existing partners. These growth drivers should enable Vicky to grow its dividend. The REIT has grown its payout at a 6.6% compound annual rate since the end of 2018, triple the pace of other REITs focused on investing in triple-net lease real estate.
While investments are no sure shot, Brookfield Infrastructure, NextEra Energy and Vici Properties seem like safe bets. They should continue to grow their earnings and dividends at healthy rates, positioning them to deliver strong total returns over the long term. They are ideal stocks for those looking for investments with a high probability of payout.
Before buying stock in NextEra Energy, consider this:
Motley Fool Stock Advisor The analyst team has just identified what they believe 10 best stocks For investors to buy now… and NextEra Energy wasn’t one of them. The 10 stocks that made the cut could deliver tremendous returns in the coming years.
consider when Netflix This list was created on December 17, 2004… If you invested $1,000 at the time of our recommendation, You will have $580,872!* or when NVIDIA This list was created on April 15, 2005… If you invested $1,000 at the time of our recommendation, You will have $1,219,180!*
Now, it’s worth noting stock advisor The total average return is 1,016% – Strong market performance compared to the S&P 500 by 197%. Don’t miss the latest top 10 list available with stock advisorAnd join an investment community built by individual investors for individual investors.
Matt DeLallo Holds positions in Brookfield Infrastructure, Brookfield Infrastructure Partners, NextEra Energy and Vici Properties. The Motley Fool has a position in and recommends NextEra Energy. The Motley Fool recommends Brookfield Infrastructure Partners and Vici Properties. The Motley Fool has one Disclosure Policy.
Smart Wealthhabits shares practical insights on personal finance, wealth building, and small business strategies to help readers make smarter financial decisions and achieve long-term financial success.
