In an era where financial savvy is essential, investing in high-yield dividend stocks can be a rewarding strategy for long-term wealth accumulation. With the Federal Reserve recently adjusting interest rates, there’s no better time to consider stocks that provide a reliable stream of income while promising growth potential. Here, we delve into three standout high-yield dividend stocks that are worth adding to your portfolio, offering promising returns over the next decade.
The first stock on our radar is Energy Transfer (NYSE: ET), which comes with an impressive 7.9% dividend yield. This midstream oil and gas company is known for its robust dividend payout patterns, primarily due to its contract-driven business model that minimizes vulnerability to fluctuating commodity prices. Over the years, Energy Transfer has outperformed other well-known players in the industry, thanks to its aggressive growth strategy and commitment to returning capital to shareholders. With plans to acquire WTG Midstream Holdings for $3.3 billion, the company is positioned for expansion in the lucrative Permian Basin, which could fuel a dividend growth of 3% to 5% annually moving forward.
Next up is Clearway Energy (NYSE: CWEN)(NYSE: CWEN.A), an undervalued gem in the rapidly expanding renewable energy sector. As solar and wind energy capacities are predicted to double by 2028, Clearway stands out, boasting a portfolio of 9 gigawatts across 26 states. Although the company faced challenges in the past—prompting a dividend cut due to client bankruptcy—it has since regained confidence by consistently raising dividends. With strong partnerships and a clear path for expansion in renewable projects, Clearway aims for a 5% to 8% increase in its dividend through 2026, making this stock an attractive option for those looking to invest in sustainable energy while earning a 6.2% yield.
Finally, we turn to Brookfield Infrastructure Partners (NYSE: BIPC)(NYSE: BIP), a powerhouse in the diversified infrastructure sector. This company yields 4.8% for its partnership units and 3.8% for corporate shares, making it an enticing option for income-focused investors. Over the past decade, Brookfield Infrastructure has seen its stock price triple, attributed largely to its steady dividend increases. With a well-rounded portfolio of essential infrastructure assets spanning utilities, midstream energy, and transportation across multiple continents, Brookfield’s business model benefits from predictable cash flows, making it an ideal candidate for long-term growth. The company’s commitment to a 5% to 9% annual dividend increase further solidifies its position as a compelling investment choice.
Investing in these high-yield dividend stocks can provide not just immediate income, but also the potential for significant capital appreciation over time. As inflation concerns linger and economic uncertainties abound, these companies offer stability and opportunities for growth that can enhance your investment strategy. Whether you’re looking to strengthen your portfolio with reliable income streams or capitalize on long-term growth trends, consider these stocks for a well-rounded approach to resilient investing.