I have made it my mission to expand my passive income to the point where it can cover my expenses. I still have a long way to go. But like the turtle, I am making slow and steady progress each month by investing more money in assets that generate passive income.
An important aspect of my passive income strategy is investing in dividend stocks. I tend to Focus on companies that pay a consistently increasing dividend with a higher yield. VICI properties (NYSE:VICI), Brookfield Infrastructure (NYSE:BIPPC) (NYSE:GDP)And Camden Property Trust (NYSE:CPT) at the top of the list High-yield dividend stocks I’m looking forward to purchasing more of these in May. Here’s why I believe They can provide me with a lucrative and growing stream Dividend income.
Bet the house always pays its rent
VICI Properties’ dividend is currently 5.8%. This is many times higher than that S&P 500Dividend yield (approx. 1.4%).
The Real Estate Investment Trust (RIDING) supports this payout A very strong Financial profile. The Company has a high-quality portfolio of experiential properties (including some of the best gaming properties on the Las Vegas Strip) that generate very stable rental income that is protected over the long term Net Leases. It pays out a conservative portion of its regular income in the form of dividends (75% of its adjusted income). Funds from Operations or FFO). Additionally, it has an investment grade balance sheet with a low Leverage ratio and long-term, fixed-interest debt.
VICI Properties’ strong financial profile gives the company the flexibility to invest in expanding its portfolio. The REIT secured $1.8 billion in new investments last year, including the acquisition of 38 bowling entertainment centers bowler And Provision of funds for construction an indoor water park and a few golf courses. The company’s growing portfolio has made this possible to steadily increase its dividend. The company has increased its payout every year since its inception and has increased at an average annual rate of 7.6% since the end of 2018. With sufficient financial flexibility and a long growth path, VICI Properties should be able to further increase its payout.
The steady upward trend should keep going
Brookfield Infrastructure currently yields just under 6%. The global infrastructure giant supports this payout with very stable cash flow. Around 90% comes from long-term contracts or regulated tariff structures, with around 85% protected from or linked to inflation. The company now has a conservative dividend payout ratio (60% to 70% of its FFO) and a solid investment-grade balance sheet with mostly long-term, fixed-rate debt.
The company’s organic growth drivers (inflation-related interest rate increases, volume growth as the global economy expands, and capital projects) are expected to result in annual FFO growth of 6% to 9% per share over the long term. The company expects its capital recycling strategy (selling mature assets to fund new investments with higher returns) to drive its FFO per share growth rate to double digits over the next few years.
Brookfield expects to grow its dividend at an annual rate of 5% to 9% over the long term. This should continue the excellent track record of dividend growth (2024 is the 15th). straight year of dividend increase).
Benefit from the increasing demand for living space
Camden Property Trust currently yields 4.1%. The Residential REIT generates permanent income as tenants pay their rent every month. The company now has a very reasonable dividend payout ratio (around 61% of its core FFO per share this year). Camden has one of these too the strongest Balance sheets in the REIT sector.
The company’s rental income tends to increase each year as rents rise across the entire housing portfolio. It’s in one strong It is able to increase rents because it focuses on owning apartments in metropolitan areas where populations and jobs are growing at above-average conditions. This means occupancy remains high and the REIT can invest in the construction of new residential complexes.
Camden is at the moment the construction of four additional residential complexes, including the first two single-family home communities. The Company has several additional projects in the pipeline that it may begin construction if market conditions warrant. The company has sufficient financial flexibility to advance these projects and use acquisitions (developable land and operating communities) as attractive opportunities come along.
These growth drivers should allow Camden to continue increasing its dividend. The payout has increased by about a third since 2018.
These high-yield payouts are likely to continue to rise higher
VICI Properties, Brookfield Infrastructure and Camden Properties pay high-yield dividends. Because of this, Every dollar I invest in allows me to earn more income these dividend stocks. They also have an excellent track record of increasing their distributions, and this trend is likely to continue. That’s why I can’t wait to buy more shares of these top passive income producers in May.
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Matt DiLallo holds positions at Brookfield Infrastructure, Brookfield Infrastructure Partners, Camden Property Trust and Vici Properties. The Motley Fool has positions in and recommends Camden Property Trust and Vici Properties. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.
“3 High-Yield Dividend Stocks I’d Like to Buy More of in May” was originally published by The Motley Fool