4 Dividend Stocks to Double Down On for Passive Income (While the Market's Volatile)

The market's volatility has investors chasing stability. If you're looking for stocks that offer reliable income streams, defensive industry positions, and hidden upside, these four dividend champions—Enterprise Products Partners (EPD), Brookfield Renewable (BEPC), American Water Works (AWK), and Parker-Hannifin (PH)—deserve serious consideration.

1. Enterprise Products Partners (EPD): The Energy Infrastructure Giant with a 6.8% Yield

EPD is a master at turning energy infrastructure into cash. With a forward dividend yield of 6.8% and a payout ratio of just 78% (comfortably below the 80% warning zone), this MLP is a fortress of stability. Analysts project a 13% upside to its price target of $37, driven by rising U.S. energy exports and fee-based contracts that insulate cash flows from commodity price swings.

Why now? Over 80% of its revenue comes from long-term, fixed-fee agreements, making it a recession-resistant cash machine. With a mid-single-digit earnings growth outlook and an A- credit rating, this is a rare blend of yield and safety.

2. Brookfield Renewable (BEPC): Green Energy's Dividend Machine (5.37% Yield)

The renewable energy boom isn't just about growth—it's about sustainable cash flows. BEPC, with its 5.37% yield, owns 20 GW of renewable assets across 14 countries. While its payout ratio spiked to 3.09 in Q2 2025 (due to a one-time earnings dip), the long-term trend is clear: dividend growth averaging 9.2% annually over the past three years.

Why now? Renewable infrastructure is a low-risk, high-barrier-to-entry sector shielded from fossil fuel volatility. With global green energy subsidies and decarbonization mandates accelerating, BEPC's moat is widening.

3. American Water Works (AWK): The Utilities Play with a 7–9% Dividend Growth Engine

Utilities stocks are classic defensive picks, and AWK is the pure play on U.S. water infrastructure. Its Q2 2025 dividend rose 8.2% to $0.8275/share, with a payout ratio targeting 55–60% of earnings—far below the 70% red line. With 14 million customers across 14 states, this regulated utility enjoys steady rate hikes and federal infrastructure funding.

Why now? The company is well-positioned to capitalize on $50 billion in federal water infrastructure spending. Its 18-month price target implies a 12% upside, and the stock's dividend reinvestment plan (DRIP) makes compounding effortless.

4. Parker-Hannifin (PH): The Industrial Aristocrat with a 25% Payout Ratio

While its 1.10% yield may seem modest, PH is a dividend aristocrat with 69 consecutive years of payout increases. With a payout ratio of 24.66% (based on TTM earnings), it retains 75% of profits for reinvestment—a recipe for long-term growth.

Why now? PH's 18% earnings CAGR over five years and $1.4B cash balance give it a firewall against economic shocks. The next dividend hike (10% in Q2 2025) signals confidence in its aerospace, industrial automation, and fluid power divisions.

The Case for Immediate Action

These four stocks offer a diversified portfolio of income and growth, all trading at discounts to their growth potential:

• EPD: 13% upside from analysts, 6.8% yield.
• BEPC: 5.37% yield with global green tailwinds.
• AWK: 7–9% dividend growth, infrastructure tailwinds.
• PH: 69-year dividend streak, 25% payout ratio.

Risks? All equities carry macro risks, but these companies' defensive sectors and conservative payout ratios mitigate downside.

Final Pitch: With yields above 5% (or in PH's case, a growth machine with dividend resilience), now is the time to double down on these stocks. Their valuations are too cheap to ignore, and their cash flows are too reliable to walk away from.

Act now before the market catches on.

Investment thesis: Buy these four dividend stalwarts for steady income and long-term growth. Their defensive sectors, sustainable payout ratios, and undervalued metrics make them buys at current prices.