Although a stock market sell-off itself can already be unnerving, it also makes dividend investments profitable and therefore appealing since larger yields are available when stock prices decline. While this does not imply that one should constantly pursue yields, it’s essential to remember that some dividend stocks are more deserving of our attention than they otherwise would be during a market sell-off.
These kinds of investments that – often even during a recession akin to the one analysts expect to come soon – can sustain their yields with stability, henceforth boosting annual and quarterly dividends and producing excellent returns for shareholders. The bottom line here is that, during difficult times, consistent passive income from dividend stocks is safe and can benefit just about any investor.
Now, let’s look at my breakdown of three dividend-paying stocks that the analysts and experts recommend as being safe, thoughtful additions to our portfolios:
Brookfield Infrastructure Partners LP (BIP)
Brookfield Infrastructure Partners (BIP) is a limited partnership that purchases and manages infrastructure assets worldwide. A global network of infrastructure firms in the utility, transportation, energy, and communications sectors are owned and operated by BIP. It invests in pipelines, toll roads, ports, and transmission and telecommunications lines. The CEO of BIP is Sam Pollock. He has been with the company since 1994 and has held this role since 2006. Hamilton, Bermuda, serves as the company’s headquarters. BIP was established in July 1905.
With an investment return objective of 12 to 15%, BIP has had an annualized total return of 18% on the NYSE. BIP has exceeded Wall Street’s projections on EPS and revenue for the last four consecutive quarters, most recently impressively beating EPS by an even 100% and revenue by 50.39%. BIP has year-over-year revenue growth of 27.13%. The consensus price objective for BIP from analysts providing 12-month predictions is 46.83, with a high estimate of 49.50 and a low of 43.33. The median forecast is a 27.16% gain from current pricing, and BIP comes with a buy rating that has held steady throughout the year. BIP has a dividend yield of 3.91%, with a quarterly payout of 36 cents per share.
NextEra Energy Partners LP (NEP)
NextEra Energy Partners (NEP), a subsidiary of NextEra Energy, is a renewable energy firm situated in Juno Beach, Florida. NEP invests in many solar, wind, and natural gas pipeline projects in North America. NEP also brings these investments to fruition by successfully operating many of these projects throughout the continent.
Since its IPO in late 2014, NEP has proven to be an incredible dividend growth investment. NEP has the support of a top-tier sponsor that anticipates investing a whopping $85 billion to $95 billion in expansion projects through 2025. Shareholders will likely receive larger dividends as a result, probably quarterly. NEP intends to raise its yearly dividend to 12% – 15% by 2025. By 2025, NEP stock might be paying an annual dividend of roughly $4.95 per share if it’s able to rise at a rate of 15% each year. NEP recently beat EPS projections by 257.48% and shows year-over-year revenue growth of 14.23%.
The consensus price target for NEP from analysts providing 12-month predictions is 86.00, with a high of 102.00 and a low of 60.00. The median forecast is a 14.91% rise from its last price, and NEP comes with a well-earned buy rating. NEP’s current dividend yield is 3.92%, with a quarterly shareholder payout of 73 cents per share.
Enterprise Products Partners LP (EPD)
Enterprise Products Partners (EPD) is an American midstream pipeline firm for natural gas and crude oil. In September of 2004, it bought GulfTerra. According to its overall revenue, EPD came in at No. 105 on the 2018 Fortune 500 list of the biggest American corporations. EPD operates in four segments: NGL Pipelines, Crude Oil Pipelines, Natural Gas Pipelines, and Petrochemical & Refined Products Services. EPD is based in and operates out of Houston, Texas, and was founded by Dan Duncan in April 1998.
EPD has increased dividends annually over the past 23 years, growing at a compound annual growth rate (CAGR) of 7%. EPD’s business strategy is fueling that dividend growth and should be a source of relief for prospective investors. EPD surpassed analysts’ forecasts in its last quarterly earnings report, beating EPS projections by 13.56% and revenue expectations by 24.27%. The consensus price objective for EPD from analysts providing 12-month forecasts is 31.00, with a high of 33.00 and a low of 28.00. The consensus estimate is up 31.36% from its last price, and the consensus also backs up EPD’s dependable buy rating. EPD has a current dividend yield of 7.88%, with a quarterly payout of 46 cents per share.
