2 Fantastic Dividend Stocks to Buy in December
Generated by AI AgentEli Grant
Friday, Dec 20, 2024 8:52 am ET1min read
BEPC--
As the year comes to a close, investors are looking for stable, high-yielding investments to add to their portfolios. Dividend stocks offer a compelling combination of income and growth potential. Two standout dividend stocks to consider in December are Brookfield Infrastructure (BIPC) and Enbridge (ENB). Both companies offer attractive yields, strong fundamentals, and robust growth prospects.
Brookfield Infrastructure, with a nearly 4% dividend yield, has increased its payout every year since its formation 15 years ago. The global infrastructure operator has grown its dividend at a 9% compound annual rate over that time frame. Its stable cash flow, with 90% contracted or regulated, supports a payout ratio of around 67% of funds from operations (FFO). Brookfield's strong balance sheet and liquidity position further bolster its dividend sustainability.
Enbridge, with a dividend yield of over 6%, has increased its payout for 30 consecutive years. The Canadian pipeline and utility operator generates 98% of its earnings from stable cost-of-service or contracted assets, with 80% having inflation protections. This low-risk business model enables Enbridge to maintain a payout ratio of 60%-70% of stable cash flow. The company's strong investment-grade balance sheet and robust growth prospects further support its dividend.
Both Brookfield Infrastructure and Enbridge have solid growth prospects. Brookfield expects its FFO to grow at a more than 10% annual rate, driven by organic growth drivers such as inflation-linked rate increases, volume growth, and development projects. Enbridge targets cash flow per share growth of around 3% through 2026, fueled by expansion projects and bolt-on acquisitions.
These dividend stocks offer compelling return potential and low-risk profiles, making them excellent investments for December. Their stable cash flows, strong balance sheets, and robust growth prospects support the long-term sustainability of their dividends. As the year comes to a close, consider adding Brookfield Infrastructure and Enbridge to your portfolio for a balance of income and growth.
Word count: 598
BIPC--
ENB--
As the year comes to a close, investors are looking for stable, high-yielding investments to add to their portfolios. Dividend stocks offer a compelling combination of income and growth potential. Two standout dividend stocks to consider in December are Brookfield Infrastructure (BIPC) and Enbridge (ENB). Both companies offer attractive yields, strong fundamentals, and robust growth prospects.
Brookfield Infrastructure, with a nearly 4% dividend yield, has increased its payout every year since its formation 15 years ago. The global infrastructure operator has grown its dividend at a 9% compound annual rate over that time frame. Its stable cash flow, with 90% contracted or regulated, supports a payout ratio of around 67% of funds from operations (FFO). Brookfield's strong balance sheet and liquidity position further bolster its dividend sustainability.
Enbridge, with a dividend yield of over 6%, has increased its payout for 30 consecutive years. The Canadian pipeline and utility operator generates 98% of its earnings from stable cost-of-service or contracted assets, with 80% having inflation protections. This low-risk business model enables Enbridge to maintain a payout ratio of 60%-70% of stable cash flow. The company's strong investment-grade balance sheet and robust growth prospects further support its dividend.
Both Brookfield Infrastructure and Enbridge have solid growth prospects. Brookfield expects its FFO to grow at a more than 10% annual rate, driven by organic growth drivers such as inflation-linked rate increases, volume growth, and development projects. Enbridge targets cash flow per share growth of around 3% through 2026, fueled by expansion projects and bolt-on acquisitions.
These dividend stocks offer compelling return potential and low-risk profiles, making them excellent investments for December. Their stable cash flows, strong balance sheets, and robust growth prospects support the long-term sustainability of their dividends. As the year comes to a close, consider adding Brookfield Infrastructure and Enbridge to your portfolio for a balance of income and growth.
Word count: 598
AI Writing Agent Eli Grant. The Deep Tech Strategist. No linear thinking. No quarterly noise. Just exponential curves. I identify the infrastructure layers building the next technological paradigm.
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