I own a lot of dividend stocks. They are an important part of my investment strategy. I'm working on eventually generating enough passive income to cover my basic living expenses.
Five stocks gave me over $500 last year dividend income piece. Below are profiles of these leaders, I hope they can help me more passive income 2025.
last year, energy transfer (NYSE: ET) It is my highest paying stock. this master limited partnership (MLP) pays out lucrative quarterly cash distributions.
It currently yields close to 6.5%, but thanks to the lower purchase price and steadily increasing distributions, my investment is yielding even higher (over 12%). The midstream company raised its dividend every quarter last year, by more than 3%.
I expect In 2025, energy transmission will remain one of my most revenue-generating investments. Although I currently have no plans to increase my posts at this timeI expect MLP will continue steadily increasing its distribution (It targets annual growth of 3% to 5%).
It can easily continue to improve its allocation). These factors are why it will remain a core income investment in my portfolio for many years Come.
Brookfield Renewable Energy (NYSE: BEPC)(NYSE: BEP) It was my second largest dividend payer last year. This is due to Renewable Energy Stocks High yield (currently 5.5%, although mine is about 9% due to lower purchase price and steadily rising dividends). top Renewable Energy Dividends Its dividends have grown at a compound annual rate of 6% over the past two decades.
Given the company's stated long-term plan to increase dividends by 5% to 9% annually, dividend increases should continue. With a strong balance sheet and strong growth momentum, it should be well-positioned to achieve this goal.
Brookfield Renewables expects to increase funding from operations (FFO) The annual growth rate will exceed 10% in the next five years. It has multiple growth catalysts, including inflation-driven interest rate hikes, development projects and accretive acquisitions.
Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP)Brookfield Renewable, its infrastructure-focused sibling, is not far behind. Thanks to my lower cost base and the company's steady dividend growth, I'm currently yielding over 7.5% (a yield over 4% at the current stock price).
The global diversified infrastructure operator (utilities, energy midstream, transportation and data) has seen its spending grow at an annual rate of 9% since its founding 15 years ago.
Like its renewable energy brethren, Brookfield Infrastructure aims to boost its spending by 5% to 9% annually. The company has plenty of momentum to achieve this goal thanks to its strong balance sheet and growth profile.
It also plans to grow FFO per share by about 10% annually, driven by inflation-driven interest rate increases, development projects, primarily data infrastructure such as data centers. semiconductor manufacturing facilities) and mergers and acquisitions.
Enterprise product partners (NYSE:EPD) Already one Very Reliable source of income for me over the years. MLP continues Steady increase Its distribution is extremely profitable (currently yielding nearly 6.5%, or 10.5% at my cost). In 2024, the company's dividends increased for the 26th consecutive year. trend it has Already continued in 2025.
MLPs have ample resources to continue increasing their allocations. It has an elite balance sheet (with the highest credit rating in the energy midstream industry). It will also have plenty of growth. Management completed the highly value-added acquisition of Piñon Midstream late last year.
Enterprise Products Partners also owns $6.9 billion main Growth capital projects under construction will be commissioned by the end of 2026.
children morgan (NYSE: KMI) Makes my top five. Natural gas pipeline stocks are currently yielding about 4%, although my number on a cost basis is closer to 7%. It has increased payments for seven consecutive years.
company It has announced plans to increase its dividend by another 2% this year. It can do this easily thanks to its strong balance sheet and steadily growing cash flow. The company has recently leveraged its balance sheet capabilities Make value-added acquisitionswhich will help further support its rising dividend.
At the same time, it has a Expansion projects continue to increase. The company sees huge opportunities for expansion in the coming years due to rising demand for natural gas from emerging catalysts such as artificial intelligence data centers. These growth drivers should provide ample incentive for it to continue raising its dividend in the future.
In recent years, when prices were lower, I took advantage of the opportunity to invest in high-yielding energy stocks. This strategy paid off and the industry now provides me with significant dividend income. I expect revenue to grow this year as these companies increase spending.
While I'm very happy with my top dividend payers, I'm currently working on adding more non-energy stocks like REIT. So my top five may look different by the end of the year.
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Matt DiLallo serves at Brookfield Infrastructure, Brookfield Infrastructure Partners, Brookfield Renewable Energy, Brookfield Renewable Partners, Energy Transfer, Enterprise Products Partners and Kinder Morgan. The Motley Fool holds a position in Kinder Morgan and recommends the company. The Motley Fool recommends Brookfield Infrastructure Partners, Brookfield Renewable, Brookfield Renewable Partners and Enterprise Products Partners. The Motley Fool has a disclosure policy.
These 5 High-Yield Dividend Stocks Provided The Most Passive Income for Me Last Year (and Should Provide Even More in 2025) Originally Posted by The Motley Fool