Latest news with #passive income
Yahoo
a day ago
- Business
- Yahoo
This 4.3%-Yielding Dividend Stock Could Double Its Payout In 8 Years
Key Points Despite raising its dividend payment by 8% annually over the past 12 years, Brookfield Infrastructure stock offers a high yield that is more than triple the market average. Brookfield Infrastructure grew second-quarter funds from operations by 9% year over year, when adjusted for fluctuating currency exchange rates. If Brookfield Infrastructure's bottom line continues growing at its present pace, the company could double its payout in about eight years. 10 stocks we like better than Brookfield Infrastructure › Investors looking for ways to pad their passive income stream with dividend stocks typically have two basic options. You can choose dividend payers that offer high yields, but these stocks tend to raise their payouts slowly, if at all. On the other hand, you could buy shares of businesses expected to raise their payouts quickly. Unfortunately, rapid payout raisers tend to offer yields that are less than the risk-free interest rate you can receive from a basic savings account. If you're not excited about low-yield payout growers or risky high-yield stocks, I've got good news. Brookfield Infrastructure (NYSE: BIPC) is a highly reliable dividend grower that offers a juicy 4.3% yield at recent prices. Here's why it looks like a perfect dividend growth stock for folks who want to see their payouts grow but can't accept low yields up front. A perfect foundation for steadily growing dividend payments Every day, millions of workers rely on Brookfield Infrastructure's massive portfolio of utility, energy, transport, and data-related assets to do their job. Whether it's pipelines that deliver natural gas, fiber optic cables that deliver data, or shipping containers that carry goods, demand for the assets this company invests in is reliable. With heaps of assets subject to depreciation and amortization, funds from operations (FFO) is the preferred metric for evaluating Brookfield Infrastructure's cash flows from one period to another. Income-seeking investors adore this business, because about 85% of FFO comes from regulated utility businesses and entities that sign long-term contracts. The company targets a payout ratio between 60% and 70% of FFO. Despite raising its payout by 8% annually over the past 12 years, the latest dividend payment was in the preferred range at 68% of FFO generated during the quarter. That means raising the dividend payment at roughly the same pace as the company's bottom line shouldn't be a problem. Brookfield Infrastructure's dividend payout has grown by 8% annually over the past 12 years. Continuing at this pace probably won't be a problem. If we adjust for foreign exchange rates, second-quarter FFO rose by 9% year over year. Second-quarter FFO that grew 9% year over year hit the top end of Brookfield Infrastructure's expected growth rate over the long term. If it can maintain this pace, the dividend payments that freshly acquired shares deliver could double in about eight years. Two avenues for growth Brookfield Infrastructure has investment-grade credit ratings from the major rating agencies. It's also a subsidiary of Brookfield Asset Management (NYSE: BAM), a leading alternative asset manager with over $1 trillion in assets under management. Brookfield Infrastructure's parent boasts an "A" credit rating from Fitch, and an "A-" rating from S&P Global. Over the past 12 months, Brookfield Asset Management raised a whopping $97 billion in capital, which gives Brookfield Infrastructure a lot of opportunities to acquire new assets. Brookfield Infrastructure recently acquired 5,500 miles of pipelines capable of transporting 2.5 million barrels per day of refined products between Texas and New York. The company expects enough profit from the pipeline to repay its principal investment in about seven years. Operating this pipeline seems like a great way to generate a profit, but it isn't Brookfield's only option. In the first seven months of 2025, the company sold nine assets for proceeds of around $2.4 billion. Brookfield Infrastructure refers to selling assets it's developed as a capital recycling program. Whatever you want to call it, it's been a tremendous source of profit. For example, the company recently sold a stake in its U.K. ports operation for $385 million, which was 7.5 times more than it paid in 2009. That works out to a 19% internal rate of return. With Brookfield Asset Management at its back, Brookfield Infrastructure doesn't just get the benefit of cheap and plentiful capital. It also has access to around 2,500 investment professionals who have their fingers on the pulse of the alternative-asset landscape. Continued growth at the top end of management's expected range of 5% to 9% isn't guaranteed, but it isn't an entirely unreasonable expectation either. For most investors, adding some shares of this stock to a diverse portfolio now and holding them indefinitely looks like the right move. Should you invest $1,000 in Brookfield Infrastructure right now? Before you buy stock in Brookfield Infrastructure, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Brookfield Infrastructure 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 $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% 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 August 4, 2025 Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends S&P Global. The Motley Fool recommends Brookfield Asset Management and Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy. This 4.3%-Yielding Dividend Stock Could Double Its Payout In 8 Years was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
a day ago
- Business
- Globe and Mail
This 4.3%-Yielding Dividend Stock Could Double Its Payout In 8 Years
Key Points Despite raising its dividend payment by 8% annually over the past 12 years, Brookfield Infrastructure stock offers a high yield that is more than triple the market average. Brookfield Infrastructure grew second-quarter funds from operations by 9% year over year, when adjusted for fluctuating currency exchange rates. If Brookfield Infrastructure's bottom line continues growing at its present pace, the company could double its payout in about eight years. 10 stocks we like better than Brookfield Infrastructure › Investors looking for ways to pad their passive income stream with dividend stocks typically have two basic options. You can choose dividend payers that offer high yields, but these stocks tend to raise their payouts slowly, if at all. On the other hand, you could buy shares of businesses expected to raise their payouts quickly. Unfortunately, rapid payout raisers tend to offer yields that are less than the risk-free interest rate you can receive from a basic savings account. If you're not excited about low-yield payout growers or risky high-yield stocks, I've got good news. Brookfield Infrastructure (NYSE: BIPC) is a highly reliable dividend grower that offers a juicy 4.3% yield at recent prices. Here's why it looks like a perfect dividend growth stock for folks who want to see their payouts grow but can't accept low yields up front. A perfect foundation for steadily growing dividend payments Every day, millions of workers rely on Brookfield Infrastructure's massive portfolio of utility, energy, transport, and data-related assets to do their job. Whether it's pipelines that deliver natural gas, fiber optic cables that deliver data, or shipping containers that carry goods, demand for the assets this company invests in is reliable. With heaps of assets subject to depreciation and amortization, funds from operations (FFO) is the preferred metric for evaluating Brookfield Infrastructure's cash flows from one period to another. Income-seeking investors adore this business, because about 85% of FFO comes from regulated utility businesses and entities that sign long-term contracts. The company targets a payout ratio between 60% and 70% of FFO. Despite raising its payout by 8% annually over the past 12 years, the latest dividend payment was in the preferred range at 68% of FFO generated during the quarter. That means raising the dividend payment at roughly the same pace as the company's bottom line shouldn't be a problem. Brookfield Infrastructure's dividend payout has grown by 8% annually over the past 12 years. Continuing at this pace probably won't be a problem. If we adjust for foreign exchange rates, second-quarter FFO rose by 9% year over year. Second-quarter FFO that grew 9% year over year hit the top end of Brookfield Infrastructure's expected growth rate over the long term. If it can maintain this pace, the dividend payments that freshly acquired shares deliver could double in about eight years. Two avenues for growth Brookfield Infrastructure has investment-grade credit ratings from the major rating agencies. It's also a subsidiary of Brookfield Asset Management (NYSE: BAM), a leading alternative asset manager with over $1 trillion in assets under management. Brookfield Infrastructure's parent boasts an "A" credit rating from Fitch, and an "A-" rating from S&P Global. Over the past 12 months, Brookfield Asset Management raised a whopping $97 billion in capital, which gives Brookfield Infrastructure a lot of opportunities to acquire new assets. Brookfield Infrastructure recently acquired 5,500 miles of pipelines capable of transporting 2.5 million barrels per day of refined products between Texas and New York. The company expects enough profit from the pipeline to repay its principal investment in about seven years. Operating this pipeline seems like a great way to generate a profit, but it isn't Brookfield's only option. In the first seven months of 2025, the company sold nine assets for proceeds of around $2.4 billion. Brookfield Infrastructure refers to selling assets it's developed as a capital recycling program. Whatever you want to call it, it's been a tremendous source of profit. For example, the company recently sold a stake in its U.K. ports operation for $385 million, which was 7.5 times more than it paid in 2009. That works out to a 19% internal rate of return. With Brookfield Asset Management at its back, Brookfield Infrastructure doesn't just get the benefit of cheap and plentiful capital. It also has access to around 2,500 investment professionals who have their fingers on the pulse of the alternative-asset landscape. Continued growth at the top end of management's expected range of 5% to 9% isn't guaranteed, but it isn't an entirely unreasonable expectation either. For most investors, adding some shares of this stock to a diverse portfolio now and holding them indefinitely looks like the right move. Should you invest $1,000 in Brookfield Infrastructure right now? Before you buy stock in Brookfield Infrastructure, 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 Brookfield Infrastructure 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 $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% 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 August 4, 2025
Forbes
2 days ago
- Business
- Forbes
Turn This ChatGPT Prompt Into A $100,000+ Passive Income Stream
The creator economy is exploding in 2025. In fact, there's never been a better time to build passive income as a creator…especially now that we have AI tools like ChatGPT. Freelance creators have an incredible advantage to be able to produce content at scale while retaining humanity, quality, and originality in the creative process. The global creator economy market size is projected to reach an eye-watering $1,345.54 billion by 2033, according to GrandView Research. GrandView's analysts also found that: Despite the booming creator market, many creators are still sitting on untapped potential. Think about it, you're producing content to: But that can only last you so long. The ChatGPT Prompt Technique To Earn Passive Income Online So how do you make money sustainably, especially as an industry professional seeking to establish credibility and make money online, without feeling tied to chasing the next big content idea every minute? You seek to create an engine that builds an entire ecosystem around one successful content idea--one that already resonates with most of your audience. This ChatGPT prompt technique is an absolute gamechanger, so give it a go: Step 1: Create a new project in ChatGPT, title it 'Passive Income Ideas' and feed this prompt in the instructions: You're my freelance business consultant and content strategist. I'm a digital creator and I currently [name your activity, i.e. write once a week for my blog/newsletter with 350 subscribers, post videos to my YouTube channel of 2,000 subscribers twice a week, etc.] within the [name your industry]. My specialism in creating content is [name your niche] and it's for [describe your audience habits, pain points, and demographics]. Your role is to help me monetize my existing content, and any new content I create, so it can scale into multiple passive income streams. Step 2: Now create a chat in this ChatGPT project with this prompt: Take this [PDF, screenshot, or Word doc of a blog you created or newsletter you wrote, attached], and help me create an entire ecosystem of passive income. Give me 10 digital product ideas, a high-ticket service I could offer as passive income, like a subscription service, and a low-ticket service/product. Why This ChatGPT Prompt Technique Works This prompt technique/workflow works well because: You don't need to think of several ideas all at once. All you need is one great content idea or one long-form content piece, like a newsletter, blog, or even a YouTube explainer video you created. Your challenge this week? Pick your best-performing content, and see how many ways you can repurpose it into multiple passive income streams--beyond content production, views, and sponsorships. The expertise you shared in your last LinkedIn newsletter could already be worth $100,000+. But only if you know how to transform it into a passive income engine. If you enjoyed reading this article and you want to make money from your skills, you should check this one out: 3 Passive Income Ideas You Can Start Today In 2025.
Yahoo
4 days ago
- Business
- Yahoo
Why passive income investors should consider these 3 defensive stocks in 2025
As someone looking to build a long-term passive income, I tend to like defensive stocks that can deliver steady(ish) revenue and earnings even when consumer confidence takes a hit. Finding high-quality defensive shares can sometimes be challenging. There are plenty of companies in the FTSE 100 Index operating in non-cyclical sectors. However, investors usually have to pay more for the privilege of lower cyclical risk that comes from owning these. That said, I've picked out three big names that I think other passive income investors should be considering in 2025. GSK Pharma heavyweight GSK (LSE: GSK) has been a steady presence on my watchlist ever since the Haleon spin-off in 2025 gave it a sharper focus on medicines and vaccines. The half-year results for the period ended 30 June showed revenue growth across its key divisions, as the company pushes towards the upper end of its guidance range in FY26. Right now, the shares are offering a dividend yield of 4.5%, which is above average for the Footsie. Its price-to-earnings (P/E) ratio is sitting at 16.8, suggesting to me the valuation isn't overly stretched compared to other big healthcare names. With a market cap north of £50bn, it's one of the index's true heavyweights and I think that scale could help it ride out bumps like trade tariffs better than smaller peers. That said, patent expiries and ligitation risks are always something to consider. For example, GSK is facing an ongoing class action following its Zantac settlement, while its HIV drug Dolutegravir patent is due to expire in 2029. These create some medium-term uncertainty. Unilever Unilever (LSE: ULVR) is an enormous global conglomerate whose brands, including Dove and Ben & Jerry's, feature heavily in my day-to-day life. I think its diversified portfolio across multiple end markets gives it strong defensive qualities despite being consumer-facing. Cost inflation has been a challenge, so I'll be watching margins to see if it can keep passing price rises onto customers. Economic weakness could also dent sales if consumers cut back. Still, Unilever has been a leader in its space for decades and proven adept at navigating challenges. The 3.4% dividend yield is solid if roughly in line with the broader Footsie. A P/E of 23 isn't cheap, but I see that as the premium investors pay for size, diversification, and steady payouts. British American Tobacco British American Tobacco (LSE: BATS) is, in my view, the Footsie's income behemoth. The yield — around 5.6% as I write on 8 August — is funded by substantial cash flows from traditional products, while its 'next-generation' portfolio is adding a bigger chunk to sales. A P/E ratio of 11.5 is below the Footsie average and my other two picks, which tells me the market is pricing in plenty of caution around the risks posed by regulation and long-term demand trends. With a £92bn market cap, its size adds to its defensive qualities, even in a tough industry. Final thoughts None of these are slam-dunk buys — nothing in investing is — but GSK, Unilever, and British American Tobacco have all caught my eye this year for blending decent yields with sectors that, in my opinion, tend to be steadier than most. While I'm not currently a shareholder, I think they could be worth a look for passive investors like me, particularly if the economy weakens and more cyclical stocks begin to underperform. The post Why passive income investors should consider these 3 defensive stocks in 2025 appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool The Motley Fool UK has recommended British American Tobacco P.l.c., GSK, and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 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
Yahoo
02-08-2025
- Business
- Yahoo
58-Year-Old Lottery Winner Tried To Strike A Deal With Teen Son, But Backed Out When The 19-Year-Old Wanted 80% —'I Didn't Realize How Greedy He Was'
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. We all daydream about winning the lottery. Maybe it's a beach house. Maybe it's early retirement. Or maybe—if you're a parent—you imagine setting your kid up for life. That's exactly what a 58-year-old father tried to do when he hit the jackpot with a $1,000-a-day-for-life prize. But instead of gratitude, he got a negotiation that made him rethink everything. In a viral Reddit post, the dad explained how he approached his 19-year-old son with a plan: he'd hand over the winning ticket, and in return, the son would give him half the money until the father passed. After that, the son would receive 100% of the daily payout for the rest of his life. Related: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share. Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here's how you can earn passive income with just $10. Although he didn't spell out all the logic, the intent seemed clear: his son, being 19, had a much longer life expectancy and could benefit from the "for life" prize far longer than he could. The father was essentially trying to gift his son a lifetime of financial security—while covering himself with a fair 50/50 arrangement in the meantime. The teen's response? Not exactly a warm embrace. "He came back and said it wasn't really fair for me to want half," the dad wrote. "He said that I could live another 40 years. That he might need the money more and that I should take 20%." So the dad thought about it—and then signed the ticket and claimed the lump sum himself. He's now working with a lawyer to set his son up in other ways: college will be covered, a house fund will be waiting, and a trust is being arranged to ensure long-term support. Still, the son is angry—and so is the dad's ex, who apparently expected a cut too. Reddit, of course, had thoughts. A lot of them. "Dad is a sweetheart, son a greedy pig," one user wrote. Another called it "rage bait," adding, "No way is someone that greedy and s*****." One of the top-rated replies summed it up like this: "A 19-year-old kid tried to negotiate from $180K/year for doing nothing to $290K/year with zero leverage and was surprised when it blew up in his face." Some were quick to defend the father's pivot to the lump sum. "It was probably for the best," a commenter wrote. "Judging the son's character... the father was probably going to get hosed on that deal pretty much immediately." Others pointed out just how generous the original offer was. "If my father had offered me that deal, I would show up at his doorstep every morning with his cash, a dozen doughnuts, and his coffee exactly the way he likes it." For what it's worth, the dad isn't leaving his son high and dry—but he's not pretending the whole thing didn't sting. "I thought I was being smart, but I didn't realize how greedy he was," he wrote. In cases like this—where family, money, and long-term plans collide—it's often smart to bring in a professional. Even if you're not lucky enough to win the lottery, platforms like SmartAsset can connect you with financial advisors who help with everything from retirement planning to tax strategy to making sure your kids don't end up arguing over the inheritance. Whether you're setting up support for your kids, planning your estate, or just trying to avoid a financial decision you'll regret later, good advice can go a long way. Because giving your kid the golden goose? That's one thing. Watching him complain it's not laying fast enough—that's something else entirely. See Next: Maximize saving for your retirement and cut down on taxes: Schedule your free call with a financial advisor to start your financial journey – no cost, no obligation. It's no wonder Jeff Bezos holds over $250 million in art — this beloved alternative asset has outpaced the S&P 500 since 1995, delivering an average annual return of 11.4%. This article 58-Year-Old Lottery Winner Tried To Strike A Deal With Teen Son, But Backed Out When The 19-Year-Old Wanted 80% —'I Didn't Realize How Greedy He Was' originally appeared on Sign in to access your portfolio
