3 Magnificent Dividend Stocks I Plan to Keep Buying for a Lifetime of Passive Income

Generating passive income is a key aspect of my early retirement strategy. I work to build myself sources of passive income so that I no longer have the stress of needing to work for money. The main aspect of my plan is to invest in companies that pay above-average dividends, which should grow steadily over the coming decades.

Real estate income (A 0.97%), Brookfield Infrastructure (BIPC 4.19%) (BEEP 2.02%)and Enbridge (ENB 1.59%) they are essential pieces of my passive income generation strategy. Here’s why I own these magnificent ones shares with dividends and I plan to continue adding to my positions in the coming years to generate even more dividend income.

A model of consistency

Realty Income has lived up to its name over the years. The real estate investment trust (REIT) has paid its investors a sustainable and ever-growing stream of dividend income over the years. The company paid 650 consecutively monthly dividends throughout its history. It has increased its payout 126 times since going public in 1994, including 107 consecutive quarters. The REIT has grown its dividend at a compound annual rate of 4.3% over that three-decade period.

It is in an excellent position to continue paying a growing monthly dividend. The REIT has a very durable real estate portfolio. About 90% of rent comes from properties leased to tenants in industries resilient to the impact of recessions or the threat of e-commerce. Meanwhile, use long term net leasingwhich provides very stable rental income as tenants cover building insurance, maintenance and property taxes. These leases usually include annual rental rate escalation clauses.

Realty Income has a very conservative financial profile, which allows it to continue to invest in income-generating real estate. It has a vast opportunity set, with a total addressable market estimated at $14 trillion for net lease real estate in the US and Europe. The REIT believes it can acquire sufficient properties every year to grow its cash flow per share by 4% to 5% annually. This should support a similar growth rate for its dividend yield of over 5%.

High octane growth

Brookfield Infrastructure operates a globally diversified infrastructure platform focused on the utilities, midstream, transportation and data sectors. Most of it businesses generate stable cash flows supported by long-term contracts or government-regulated rate structures that account for about 90% of its earnings. Meanwhile, 85% of its income is either indexed TO or protected from inflation.

The company pays outside 60% to 70% of its stable cash flow in dividends. It retains the rest to help fund new revenue-generating infrastructure investments. Brookfield Infrastructure also has a strong investment grade balance sheet. The company estimates its powerful growth factors should allow it to grow its cash flow per share by more than 10% annually.

Brookfield Infrastructure’s growing cash flow should allow it to raise its dividend, which currently yields about 4%, to about 5% to 9% annually. The company increased its dividend every year since going public, growing it at a 9% compound annual rate since 2009.

Enough fuel to keep the string alive

Enbridge has an outstanding record of paying dividends. The Canadian pipeline and utilities operator has paid dividends for more than 69 years. He increased his pay in each of for the past 29 consecutive years, growing it at a compound annual rate of 10%.

While Enbridge probably won’t to increase its dividend so fast in the future, it has enough fuel to keep increasing its payments. The company at present has approximately $17.7 billion of guaranteed capital projects in stock. These projects include oil storage and export capacity, natural gas pipeline expansion projects, LNG export terminal investments, gas utility expansions and renewable energy projects. The company’s current slate of capital projects should come on stream by 2028, giving it plenty of visibility into future growth.

Enbridge estimates that its growth drivers should grow its cash flow per share by 3% annually through 2026 and by about 5% per year after that. This leads to his belief that he should be able to grow up close 7% yield dividend up to 5% annually in the future.

Income producing machines

Realty Income, Brookfield Infrastructure and Enbridge have excellent track records of high-yielding dividend growth. As this should continue for years to come, I plan to continue adding to my positions in these elite passive income stocks. Their high-yielding and steadily growing dividends should let me TO in the end reach my passive income goal.