2 Irresistible Dividend Stocks to Snap Up This April

The category of dividend stocks can be divided into three types: ones with stable dividend payments, ones where the dividends have been reduced or completely removed, and ones that start off with dividends and then increase them progressively. Historically, this final group has shown much greater performance compared to other kinds of dividend stocks over an extended period.

Dividend Policy Where should you put your $1,000 investment at this moment? Our analysis group has just disclosed their insights into what they consider to be the 10 best stocks to buy right now. Learn More »	Returns
Dividend growers and initiators	10.2%
There will be no alterations to our dividend policy.	6.8%
Dividend cutters and eliminators	(0.9%)

Data source: Ned Davis Research and Hartford Funds.

When considering the performance data of dividend stocks based on their policies, opting for dividend growth stocks emerges as an obvious investment choice. Brookfield Renewable (NYSE: BEPC) (NYSE: BEP) and Enbridge (NYSE: ENB) Are exceptional dividend growth stocks to purchase this April. These companies boast strong histories of increasing their high-yield dividends, a trend likely to persist going forward.

Powerful total return potential

Brookfield Renewable has delivered very steady increase in dividends since its initial public offering in 2011. As a top global player, renewable energy The producer has raised its payments by at least 5% each year consistently. that 14-year period That increasing dividend has contributed significantly to the robust total returns for the company’s shareholders at an average of 11.2% per year.

The firm is well-placed to keep expanding its lucrative dividend, now standing at 5.3%. It primarily enters into long-term agreements for the electricity it generates, with these deals linking tariffs to inflation rates. Such arrangements ought to enhance its cash flow from operations. FFO ) annually. Additionally, since market power prices are increasing more rapidly than inflation, the firm anticipates that when older contracts end, they will be replaced with newer agreements at elevated rates. Initiatives aimed at boosting margins could contribute an extra 2% to 4% yearly to its funds from operations (FFO) per share. Furthermore, Brookfield possesses a significant portfolio of upcoming renewable energy developments, which is expected to increase its FFO per share by 4% to 6% every year.

Summing it all up, its natural expansion catalysts could contribute to an annual FFO per share growth of 8% to 13%. Furthermore, Brookfield boasts a strong track record of executing accretive purchases. To speed up its growth even more These factors will enable Brookfield to increase its dividend by 5% to 9% each year over the long run. Combining this yield with its growth potential suggests that Brookfield might keep delivering double-digit total yearly returns in the future.

Sufficient resources to keep increasing shareholder value

Enbridge boasts an impressive history of dividend payments. The Canadian pipeline and utility The company has issued dividends before. more than 70 years while increasing its distribution over the last 30 in a row . It has boosted its payout at an admirable 9% compounded annually. over those three decades . Enbridge's increasing distribution has contributed to impressive overall returns exceeding an average of 11% per year over the last two decades.

The massive energy infrastructure company has ample resources to keep expanding its substantial dividend yield, presently standing at 6%. The firm’s pipeline and utility holdings contribute significantly to this growth. very consistent cash flow supported by lengthy agreements and government-controlled pricing mechanisms. It distributes out Approximately 60% to 70% of that consistent cash flow comes from dividends, with the remainder being kept aside to support growth initiatives. Additionally, Enbridge boasts an impressive investment-grade financial position. This combination provides them with multiple billion-dollar opportunities for yearly investments.

Currently, Enbridge has an extensive backlog of multibillion-dollar projects with commercial backing that are underway. The company is enlarging its dominant oil pipeline system, constructing additional natural gas transport facilities, and pouring investments into expanding its operations. natural gas services, along with developing renewable energy initiatives. The company currently has initiatives scheduled to commence commercial operation through the end of the decade . Those projects should grow its Cash flow per share will increase by 3% each year until next year and then grow at an annual rate of 5% starting from 2026. This should facilitate comparable yearly dividend hikes. By merging Enbridge’s yield with its growth rate, it has the potential to generate a total annual return of approximately 10%.

Top-notch dividend stocks

Both Brookfield Infrastructure and Enbridge boast impressive histories of increasing their dividends. This track record has enabled them to deliver robust overall returns. Given the potential for further dividend hikes, these companies are poised to keep offering appealing total returns to shareholders. Consequently, they represent clear picks for income-focused investors looking to make purchases in the upcoming month.

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Matt DiLallo holds stakes in Brookfield Renewable, Brookfield Renewable Partners, and Enbridge. The Motley Fool owns shares of and endorses investing in Enbridge. Additionally, The Motley Fool supports purchasing stocks in both Brookfield Renewable and Brookfield Renewable Partners. The Motley Fool has a disclosure policy .