Do you want a safe and reliable passive income? Here are the two dividend stocks to buy during a stock market selloff

Well-chosen dividend stocks can make you richer. Investing in these proven wealth creators during a stock market crash can be even more profitable. Buying great stocks when their dividend yields are high and stock prices are low is a proven, fortune-building strategy.

Here are two excellent dividend stocks with an impressive track record of enriching their investors with steadily growing cash payouts. These battle-tested businesses can help you develop your own passive income streams.

Top Dividend Stocks to Buy No. 1: Real estate income

Real estate and passive income go together like peanut butter and jelly. However, here’s a tip that many investors don’t know: You can claim your share of this lucrative asset class without the headaches that often come with ownership. Real estate investment trusts (REITs) offer a hassle-free way to earn generous and reliable streams of dividend income from some of the best investment properties. And Real estate income (NYSE: O) it is the cream of the crop.

With ownership stakes in 15,450 commercial properties leased to more than 1,500 different clients in 90 industries, Realty Income’s investment portfolio is well diversified. The REIT’s focus on recession-proof businesses such as grocery, drug and discount stores further reduces risks for shareholders. Major clients include Walmart, CVS Healthand The dollar tree. This sensible approach has allowed Realty Income to maintain occupancy rates of at least 96% for over 30 years.

Better yet, Realty Income must pass on at least 90% of its earnings to its investors to take advantage of the tax savings available to REITs. It does so by paying out a growing stream of cash dividends. The real estate titan has rewarded shareholders with 649 consecutive months of cash payouts — and has increased its dividend for 107 consecutive quarters. Shares of Realty Income are currently yielding a solid 5.25%.

Top Dividend Stocks to Buy No. 2: Enbridge

If you want to earn even more passive income, take a look at Enbridge (NYSE: ENB). The energy infrastructure behemoth is offering you a wealth-generating dividend yield of 6.68% today.

Enbridge’s vast network of pipelines delivers about 30% of the crude oil produced and 20% of the natural gas consumed in the US. It gets almost all of its cash flow from long-term, volume-based contracts that help it insulate its shareholders from commodity price fluctuations. . This low-risk business model produces predictable results over economic cycles, which has enabled Enbridge to increase its cash distributions to investors for 29 consecutive years.

This impressive streak will likely continue. Strong growth engines are poised to fuel Enbridge’s expansion. These include the growing need for liquefied natural gas in Europe and Asia, as well as the booming demand for renewable energy such as wind and solar, areas in which Enbridge is investing aggressively.

However, perhaps Enbridge’s most exciting source of growth is in data centers. Increasing demand for artificial intelligence (AI) services creates an urgent need for more electricity. Much of this electricity will come from new natural gas power plants and renewable energy projects. Enbridge’s irreplaceable infrastructure will play a vital role in connecting power producers with data center operators and other energy-hungry customers.

With several trends fueling its growth, Enbridge is well positioned to provide its shareholders with steadily increasing streams of passive income for years to come.

Should you invest $1,000 in Enbridge right now?

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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Enbridge, Realty Income and Walmart. The Motley Fool recommends CVS Health. The Motley Fool has a disclosure policy.

Do you want a safe and reliable passive income? Here are the two dividend stocks to buy during a stock market selloff was originally published by The Motley Fool