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Globe and Mail
29-05-2025
- Business
- Globe and Mail
Want More Money? These 3 High-Yield Dividend Stocks Are on Track to Give You a Raise Every Single Quarter.
Most top dividend stocks strive to boost their payments at least once a year. However, some companies are even more generous. They aim to give their investors a raise every single quarter. That enables investors to collect a very steadily rising income stream. Clearway Energy (NYSE: CWEN.A)(NYSE: CWEN), Energy Transfer (NYSE: ET), and W.P. Carey (NYSE: WPC) have been hiking their high-yielding payouts each quarter for the past few years. While future payments are not guaranteed, these look like ideal stocks to buy to collect a very steadily rising stream of passive income. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » A powerful plan to grow its dividend Clearway Energy currently pays a $0.4384 per-share dividend ($1.75 annualized). The clean energy company has a 5.7% dividend yield at its current rate and share price. The company generates very stable cash flow by selling clean energy to utilities and large corporate customers under long-term, fixed-rate power purchase agreements (PPAs). The company has been raising its dividend each quarter (it hiked its payout by 1.7% last quarter), and it's targeting to pay a total of $1.76 per share in dividends this year. It aims to deliver 6.5% dividend-per-share growth next year and raise its payment in the bottom half of its 5%-8% long-term target range in 2027. Powering Clearway's growing dividend is its investmentstoexpand its clean energy portfolio. For example, it recently bought an operational solar farm in California and a wind farm in Washington. The company also agreed to re-power the Mt. Storm Wind project in West Virginia by installing larger turbines. It will sell the power from that project to Microsoft under a 20-year PPA. The company uses its post-dividend free cash flow and balance sheet flexibility to fund growth investments. Lots of fuel to increase its lucrative payout Energy Transfer currently pays a quarterly distribution of $0.3275 per unit ($1.31 annualized). That gives the master limited partnership (MLP) a 7.3% yield at its recent unit price and distribution level. The energy midstream company aims to raise its distribution by $0.0025 per unit each quarter ($0.01 annualized), which works out to a 3% to 5% annual growth rate. The MLP, which sends its investors a Schedule K-1 federal tax form each year -- so unitholders will have a little extra paperwork -- generates very stable cash flow because fee-based assets supply about 90% of its annual earnings. Energy Transfer aims to distribute a little more than half of its stable earnings to investors, retaining the rest to invest in growing its operations and maintaining a rock-solid financial profile. Energy Transfer is investing about $5 billion into growth capital projects this year, which should come online through the end of next year. Those expansions will supply it with incremental sources of cash flow as theyenter commercial service. It has many more projects under development that it could approve in the future. Meanwhile, its strong balance sheet gives it the financial flexibility to make accretive acquisitions as opportunities arise. It bought WTG Midstream last year in a $3.3 billion deal that will add $0.04 per unit to its cash flow this year, increasing to $0.07 per unit by 2027. The company's growth investments give it the fuel to raise its payout each quarter. Dual dividend growth drivers W.P. Carey recently raised its dividend payment to $0.89 per share ($3.56 annualized). The real estate investment trust (REIT) has a 5.7% yield at its current payout level and share price. The landlord has been increasing its payment every quarter since resetting its dividend in 2023 when it exited the office sector by selling and spinning off those properties. It raised its payment by $0.005 per share each quarter last year and has been hiking it by $0.01 per share each quarter this year. Two factors drive W.P. Carey's steadily rising dividend. The REIT invests in single-tenant industrial, warehouse, retail, and other properties secured by long-term net leases with built-in rent escalation. About half of its leases tie rental rates to inflation, while most of the remaining contracts raise rents at a fixed annual rate. These leases supply it with very stable and steadily rising rental income. In addition, W.P. Carey uses its post-dividend free cash flow, non-core assets sales, and balance sheet flexibility to buy additional income-producing properties secured by leases with built-in rental escalation. This strategy supplies it with a growing income stream to support its steadily rising dividend. Get paid more each quarter Clearway Energy, Energy Transfer, and W.P. Carey have been raising their dividend payments each quarter. That's adding to their already lucrative income streams. It makes them ideal dividend stocks to buy for those who want to collect a very steadily rising stream of passive income. Should you invest $1,000 in Energy Transfer right now? Before you buy stock in Energy Transfer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Energy Transfer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor 's total average return is978% — a market-crushing outperformance compared to170%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Matt DiLallo has positions in Clearway Energy, Energy Transfer, and W.P. Carey. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Yahoo
29-05-2025
- Business
- Yahoo
Want More Money? These 3 High-Yield Dividend Stocks Are on Track to Give You a Raise Every Single Quarter.
Clearway Energy has a clear strategy to increase its quarterly dividend. Energy Transfer aims to raise its big-time payout by 3% to 5% per year. W.P. Carey has dual growth drivers pushing its quarterly payout higher. 10 stocks we like better than Energy Transfer › Most top dividend stocks strive to boost their payments at least once a year. However, some companies are even more generous. They aim to give their investors a raise every single quarter. That enables investors to collect a very steadily rising income stream. Clearway Energy (NYSE: CWEN.A)(NYSE: CWEN), Energy Transfer (NYSE: ET), and W.P. Carey (NYSE: WPC) have been hiking their high-yielding payouts each quarter for the past few years. While future payments are not guaranteed, these look like ideal stocks to buy to collect a very steadily rising stream of passive income. Clearway Energy currently pays a $0.4384 per-share dividend ($1.75 annualized). The clean energy company has a 5.7% dividend yield at its current rate and share price. The company generates very stable cash flow by selling clean energy to utilities and large corporate customers under long-term, fixed-rate power purchase agreements (PPAs). The company has been raising its dividend each quarter (it hiked its payout by 1.7% last quarter), and it's targeting to pay a total of $1.76 per share in dividends this year. It aims to deliver 6.5% dividend-per-share growth next year and raise its payment in the bottom half of its 5%-8% long-term target range in 2027. Powering Clearway's growing dividend is its investments to expand its clean energy portfolio. For example, it recently bought an operational solar farm in California and a wind farm in Washington. The company also agreed to re-power the Mt. Storm Wind project in West Virginia by installing larger turbines. It will sell the power from that project to Microsoft under a 20-year PPA. The company uses its post-dividend free cash flow and balance sheet flexibility to fund growth investments. Energy Transfer currently pays a quarterly distribution of $0.3275 per unit ($1.31 annualized). That gives the master limited partnership (MLP) a 7.3% yield at its recent unit price and distribution level. The energy midstream company aims to raise its distribution by $0.0025 per unit each quarter ($0.01 annualized), which works out to a 3% to 5% annual growth rate. The MLP, which sends its investors a Schedule K-1 federal tax form each year -- so unitholders will have a little extra paperwork -- generates very stable cash flow because fee-based assets supply about 90% of its annual earnings. Energy Transfer aims to distribute a little more than half of its stable earnings to investors, retaining the rest to invest in growing its operations and maintaining a rock-solid financial profile. Energy Transfer is investing about $5 billion into growth capital projects this year, which should come online through the end of next year. Those expansions will supply it with incremental sources of cash flow as they enter commercial service. It has many more projects under development that it could approve in the future. Meanwhile, its strong balance sheet gives it the financial flexibility to make accretive acquisitions as opportunities arise. It bought WTG Midstream last year in a $3.3 billion deal that will add $0.04 per unit to its cash flow this year, increasing to $0.07 per unit by 2027. The company's growth investments give it the fuel to raise its payout each quarter. W.P. Carey recently raised its dividend payment to $0.89 per share ($3.56 annualized). The real estate investment trust (REIT) has a 5.7% yield at its current payout level and share price. The landlord has been increasing its payment every quarter since resetting its dividend in 2023 when it exited the office sector by selling and spinning off those properties. It raised its payment by $0.005 per share each quarter last year and has been hiking it by $0.01 per share each quarter this year. Two factors drive W.P. Carey's steadily rising dividend. The REIT invests in single-tenant industrial, warehouse, retail, and other properties secured by long-term net leases with built-in rent escalation. About half of its leases tie rental rates to inflation, while most of the remaining contracts raise rents at a fixed annual rate. These leases supply it with very stable and steadily rising rental income. In addition, W.P. Carey uses its post-dividend free cash flow, non-core assets sales, and balance sheet flexibility to buy additional income-producing properties secured by leases with built-in rental escalation. This strategy supplies it with a growing income stream to support its steadily rising dividend. Clearway Energy, Energy Transfer, and W.P. Carey have been raising their dividend payments each quarter. That's adding to their already lucrative income streams. It makes them ideal dividend stocks to buy for those who want to collect a very steadily rising stream of passive income. Before you buy stock in Energy Transfer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Energy Transfer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Matt DiLallo has positions in Clearway Energy, Energy Transfer, and W.P. Carey. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Want More Money? These 3 High-Yield Dividend Stocks Are on Track to Give You a Raise Every Single Quarter. was originally published by The Motley Fool
Yahoo
24-05-2025
- Business
- Yahoo
Steady Payouts, Low Profile: Meet This Lesser-Known Dividend Player
Clearway Energy, Inc. (NYSE:CWEN) is a major player in the clean energy sector, operating one of the largest renewable energy portfolios in the US, which includes solar, wind, energy storage, and natural gas projects. The company sells electricity through long-term, fixed-rate contracts, helping it generate steady cash flows that support its dividend payments. Despite its operations, Clearway Energy, Inc. (NYSE:CWEN) remains relatively under-the-radar among dividend-focused investors, largely because it operates quietly behind the scenes. However, it has a strong track record of consistent dividend payments and maintains a healthy cash position. In Q1 2025, it reported $95 million in operating cash flow and $77 million in cash available for distribution (CAFD), both up from the same period in 2024. Clearway Energy, Inc. (NYSE:CWEN) faced turbulence in 2023 and 2024 amid rising interest rates and concerns about slowing renewable energy demand. While the sector has indeed felt the pressure, fears about the company's business may be overblown. Its revenues are backed by long-term contracts, and demand for clean energy from utilities remains strong. With access to capital and a positive long-term outlook, Clearway Energy, Inc. (NYSE:CWEN) expects to grow its earnings and aims to boost its dividend by 5% to 8% annually in the coming years. On top of that, the stock maintains a healthy dividend yield, which stands at 5.76%, as of May 23. CWEN is up by nearly 16% in 2025 so far. While we acknowledge the potential of CWEN as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than CWEN but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ MORE: and Disclosure. None. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
24-05-2025
- Business
- Yahoo
Steady Payouts, Low Profile: Meet This Lesser-Known Dividend Player
Clearway Energy, Inc. (NYSE:CWEN) is a major player in the clean energy sector, operating one of the largest renewable energy portfolios in the US, which includes solar, wind, energy storage, and natural gas projects. The company sells electricity through long-term, fixed-rate contracts, helping it generate steady cash flows that support its dividend payments. Despite its operations, Clearway Energy, Inc. (NYSE:CWEN) remains relatively under-the-radar among dividend-focused investors, largely because it operates quietly behind the scenes. However, it has a strong track record of consistent dividend payments and maintains a healthy cash position. In Q1 2025, it reported $95 million in operating cash flow and $77 million in cash available for distribution (CAFD), both up from the same period in 2024. Clearway Energy, Inc. (NYSE:CWEN) faced turbulence in 2023 and 2024 amid rising interest rates and concerns about slowing renewable energy demand. While the sector has indeed felt the pressure, fears about the company's business may be overblown. Its revenues are backed by long-term contracts, and demand for clean energy from utilities remains strong. With access to capital and a positive long-term outlook, Clearway Energy, Inc. (NYSE:CWEN) expects to grow its earnings and aims to boost its dividend by 5% to 8% annually in the coming years. On top of that, the stock maintains a healthy dividend yield, which stands at 5.76%, as of May 23. CWEN is up by nearly 16% in 2025 so far. While we acknowledge the potential of CWEN as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than CWEN but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ MORE: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
21-05-2025
- Business
- Globe and Mail
5 Top Dividend Stocks Yielding Over 5% to Buy for Passive Income
Investing in dividend stocks can be a great way to collect dividend income. Several high-quality companies currently offer higher-yielding dividends. That enables you to generate more passive income from every dollar you invest. Here are five top dividend stocks currently yielding over 5%, well above the S&P 500 's sub-1.5% dividend yield. At that rate, every $100 you invest will produce over $5 of passive dividend income each year. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Alexandria Real Estate Equities Alexandria Real Estate Equities (NYSE: ARE) is a real estate investment trust (REIT) focused on owning life science properties. It owns, operates, and develops collaborative megacampuses in life science innovation clusters, including Greater Boston, the San Francisco Bay area, San Diego, Seattle, Maryland, the Research Triangle, and New York City. It leases space in its purpose-built lab and office buildings to biopharmaceutical companies, medical technology companies, and biomedical institutions. It uses a portion of the rent collected from these companies, accounting for 57% of its funds from operations, to pay a lucrative dividend that currently yields over 7%. It retains the rest to invest in developing, redeveloping, and acquiring additional lab properties. These investments have enabled Alexandria to grow its dividend at a 4.5% annual rate since the end of 2020. Clearway Energy Clearway Energy (NYSE: CWEN)(NYSE: CWEN.A) is a leading owner of clean energy generation assets, including wind, solar, battery storage, and natural gas. The company sells the electricity that those assets produce under long-term, fixed-rate power purchase agreements with utilities and large corporate power buyers. Clearway targets to pay out 70% to 80% of its stable cash flow in dividends. It currently has a dividend yield of nearly 6%. The company uses the cash it retains and its solid balance sheet to invest in additional income-generating clean energy assets. It has investments lined up to grow its cash available for distribution from $2.08 per share this year to over $2.60 per share by 2027. That should give Clearway plenty of power to continue increasing its high-yielding dividend. Enbridge Enbridge (NYSE: ENB) is a leading North American pipeline and utility company. Those businesses generate very stable cash flow. The company pays out 60% to 70% of its steady cash flow in dividends, with a 6% current yield. The energy infrastructure company's post-dividend free cash flow and strong balance sheet give it billions of dollars in annual investment capacity. It uses that financial flexibility to invest in organic expansion projects and make accretive bolt-on acquisitions. Enbridge currently has expansion projects under construction that will come online through the end of the decade. That gives it a lot of visibility into its ability to continue growing its earnings and dividend, with plans for 3% to 5% annual growth in the coming years. Enbridge has grown its dividend for 30 consecutive years. NNN REIT NNN REIT (NYSE: NNN) is a REIT focused on owning income-generating freestanding net lease retail properties, such as convenience stores, auto service locations, and restaurants. Net leases produce very stable rental income because tenants cover all of a property's operating expenses, including routine maintenance, real estate taxes, and building insurance. NNN REIT uses that steady rental income to pay its dividend, which currently yields around 5.5%. The REIT expects to generate enough cash to pay its dividend with about $200 million to spare this year. It also has a conservative balance sheet. Those features give it the financial flexibility to buy additional income-generating retail properties. NNN REIT's steadily growing portfolio has enabled it to routinely increase its dividend. Last year was the 35th straight year that it had raised its payment. Verizon Verizon (NYSE: VZ) is one of the country's largest mobile and broadband companies. It generates lots of recurring revenue as customers pay their cellphone and internet bills. Last year, Verizon generated $19.8 billion in free cash flow after funding $17.1 billion in capital expenditures to maintain and expand its mobile and broadband networks. That easily covered its $11.2 billion dividend outlay, enabling the company to retain cash to strengthen its already rock-solid balance sheet. That puts the telecom giant's 6%-plus-yielding dividend payment on a rock-solid foundation. The company invests heavily in growing its business. It plans to continue spending billions of dollars on capital expenditures each year. Verizon also agreed to buy Frontier Communications in a $20 billion deal to enhance its fiber capabilities. These growth-focused investments should enable Verizon to continue increasing its high-yielding dividend, which it has raised for a sector-leading 18 straight years. Lots of passive income now and even more in the future These dividend stocks all share a few common features. They generate lots of stable cash flow, which they use to pay high-yielding dividends while investing in growing their businesses. That growth enables them to routinely raise their dividend payments. Investors, in turn, get to collect a lucrative passive income stream that should steadily grow in the future. Should you invest $1,000 in Enbridge right now? Before you buy stock in Enbridge, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Enbridge wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor 's total average return is975% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
