2 High-Yield Dividend Stocks for a Decade of Growth

Investing in dividend stocks can provide a steady income stream and long-term capital appreciation. With interest rates on the rise, high-yield dividend stocks have become increasingly attractive. Two companies that stand out in this category are Brookfield Renewable and Enbridge, both offering compelling growth prospects and attractive yields.

Brookfield Renewable (NYSE: BEPC)(NYSE: BEP) is a leading global renewable energy producer with a diversified portfolio of hydro, wind, solar, and storage assets across 17 countries. The company offers a dividend yield of over 4.5%, significantly higher than the S&P 500's current yield of around 1.2%. Brookfield Renewable has increased its dividend at a 6% compound annual rate over the past two decades and expects to grow its payout by 5% to 9% annually in the long term.

The company's strong growth prospects are secured through 2029, with development projects and acquisitions driving its funds from operations (FFO) per share growth at a more than 10% annual rate. Brookfield Renewable's extensive development pipeline, with over 200 gigawatts (GW) of projects in various stages, ensures a steady stream of new capacity. Additionally, the company expects to benefit from rising power prices and inflation-linked rate increases on its existing contracts.



Enbridge (NYSE: ENB) is a Canadian pipeline and utility company with a diversified portfolio of oil and gas pipelines, utilities, and renewable energy projects. The company offers a dividend yield above 6% and has increased its payout for 29 straight years, growing it at a 10% compound annual rate. Enbridge's dividend growth has moderated in recent years but is expected to continue trending higher in the future.

The company has a secured capital project backlog of over CAD 27 billion, with in-service dates through 2029. This capital project backlog provides Enbridge with visibility into its future earnings growth, with the company expecting to grow its earnings before interest, taxes, depreciation, and amortization (EBITDA) by around 7% to 9% annually through 2026. Enbridge's cash flow per share is expected to rise by around 3% annually during that time frame, with growth accelerating after 2026.



Both Brookfield Renewable and Enbridge have strong financial health and conservative debt levels, ensuring the sustainability of their high dividend yields. Their diversified portfolios and visible growth prospects make them excellent income stocks to buy and hold for the next decade.

In conclusion, investors seeking high-yield dividend stocks with strong growth prospects should consider Brookfield Renewable and Enbridge. Their attractive yields, combined with their robust earnings growth and diversified portfolios, make them ideal for long-term investment. As the global economy continues to evolve, these companies' commitment to sustainability and innovation positions them well for future success.