3 Top High-Yield Dividend Stocks I Plan to Buy in July to Boost My Passive Income

Motley Fool

Brookfield Infrastructure

-0.94%

Brookfield Infrastructure Partners LP

-1.00%

W.P. Carey Inc. (REIT)

-0.61%

Chevron

-0.48%

Key Points

I love to generate passive income. It gives me more money to invest. It also provides me with more peace of mind, knowing I'll have supplemental income to help cover my bills if needed. I eventually want to become financially independent by generating enough passive income to cover all my basic living expenses.

I strive to increase my each month by investing in additional income-generating assets. Buying is a core aspect of my income strategy. Three that I plan on purchasing this July to boost my passive income are Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP), Chevron (NYSE: CVX), and W.P. Carey (NYSE: WPC). Here's why I think they're great dividend stocks to buy for income.

A dividend growth machine

Brookfield Infrastructure is a leading global infrastructure investor. It has a diversified platform of utilities, energy midstream, transportation, and data assets. Its infrastructure investments generate stable and steadily growing cash flow, which supports its more than 4%-yielding dividend.

The company gets 85% of its funds from operations (FFO) from contracted or regulated assets that either index its earnings to inflation or protect it from its effects. Brookfield estimates that inflation indexation alone will add 3% to 4% to its FFO per share each year. Meanwhile, the company expects volume growth as the global economy expands to add another 1% to 2% to its annual FFO per share.

Brookfield pays out 60% to 70% of its stable cash flow in dividends. That enables it to retain cash to reinvest into growth capital projects. It anticipates that those investments will boost its FFO per share by 2% to 3% annually. On top of that, Brookfield routinely makes accretive acquisitions funded by recycling capital. The company anticipates that its quartet of growth drivers will fuel more than 10% annual FFO per share growth. That easily supports its plan to grow its high-yielding dividend by 5% to 9% annually. Brookfield has increased its payment every year since its formation 16 years ago, growing it at a 9% compound annual rate.

A high-octane payout

Oil giant Chevron's dividend yield is approaching 5%. That high-yielding payout is on a rock-solid foundation. Chevron has the lowest breakeven levels in the sector at around $30 per barrel, more than 50% below the recent price point. The company also has one of the strongest balance sheets in the oil industry. It had an ultralow leverage level of 14% at the end of the first quarter, well below its 20%-25% target range.

Chevron's resilient portfolio and fortress balance sheet have supported its ability to consistently increase its dividend. It has raised its payout for 38 straight years, which includes multiple commodity price cycles. The company has delivered peer-leading growth over the past 10 years.

The oil company is in an excellent position to continue growing its dividend. It expects its current slate of growth projects to add $9 billion to its free cash flow next year at $60 oil. Chevron is also working to significantly enhance and extend its production and free cash flow growth outlook by acquiring Hess in a deal it hopes to close later this year.

A steady dividend grower

W.P. Carey is a diversified real estate investment trust (REIT). It owns operationally critical real estate, including warehouse, industrial, retail, and other properties, net leased to credit-worthy tenants across North America and Europe. Its leases feature rental escalations that raise rates at either a fixed rate or one tied to inflation. The REIT's portfolio provides stable and growing rental income to support its 5.5%-yielding dividend.

The landlord pays out about 70% to 75% of its stable cash flow in dividends. That level allows it to retain some funds to reinvest in additional income-generating real estate. It also has a strong balance sheet to fund new investments. New properties supply it with additional sources of growing rental income.

W.P. Carey's growing rental income enables it to increase its dividend. The REIT has raised its payment every quarter since resetting the level in late 2023 following its strategic decision to exit the office sector by selling and spinning off those properties. Before that reset, it had increased its dividend annually for a quarter-century.

Top-notch passive income producers

Brookfield Infrastructure, Chevron, and W.P. Carey pay high-yielding dividends that steadily increase. They can supply me with a lot of passive income now and even more in the future. That income potential is why I plan to buy even more shares of these top dividend stocks in July.

Should you invest $1,000 in Chevron right now?

Before you buy stock in Chevron, 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 Chevron 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 $722,181!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $968,402!*

Now, it’s worth noting Stock Advisor’s total average return is 1,069% — a market-crushing outperformance compared to 177% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

*Stock Advisor returns as of June 30, 2025

Matt DiLallo has positions in Brookfield Infrastructure, Brookfield Infrastructure Partners, Chevron, and W.P. Carey. The Motley Fool has positions in and recommends Chevron. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.

3 Top High-Yield Dividend Stocks I Plan to Buy in July to Boost My Passive Income was originally published by The Motley Fool

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Brookfield Infrastructure To Host Second Quarter 2025 Results Conference Call

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10 Dividend Stocks to Double Up on Right Now

Motley Fool

Brookfield Infrastructure

-0.94%

Caterpillar

-4.43%

Brookfield Infrastructure Partners LP

Key Points

Dividend stocks not only offer a regular stream of passive income but are also proven wealth-builders, especially if you invest in top-notch dividend growth stocks and reinvest the dividends. Doing so could even earn you monstrous returns over time due to the power of compounding.

I prioritize dividend stability and growth over dividend yield, and with that in mind, I have found 10 incredible dividend stocks you can buy and even double up on right now. The best part is that some of these stocks offer a rare combination of both dividend growth and a high yield.

1. Realty Income: Yield 5.6%

Realty Income (NYSE: O) is the only stock on this list that pays a monthly dividend. Since Realty Income is a real estate investment trust (REIT), it pays out most of its profits in dividends and has therefore paid a dividend regularly since going public in 1994.

However, Realty Income has also increased its dividend by 130 times since then, largely due to its hugely diversified portfolio of over 15,000 properties that generate rent under long-term, triple-net leases. While the diversity insulates Realty Income from economic shocks, the triple-net lease structure ensures low costs and high margins. Realty Income is on solid footing, but the stock is trading 30% below all-time highs, making it a fantastic high-yield dividend growth stock to buy right now.

2. NextEra Energy: Yield 3.2%

NextEra Energy (NYSE: NEE) is the largest electric utility in America, the world's largest producer of wind and solar energy, and a leader in battery storage. The business combines stable cash flows from utilities with growth from renewables, which explains why NextEra Energy hasn't just paid a regular dividend since 1991 but also increased it every year for over 20 years now.

NextEra Energy's renewables and storage pipeline alone currently stand at almost 300 gigawatts. With the company projecting 6% to 8% annual growth in adjusted earnings per share and around 10% annual dividend growth through at least 2026, it's an attractive blue chip dividend stock to double up on now.

3. Enterprise Products Partners: Yield 6.9%

Enterprise Products Partners (NYSE: EPD) is one of the best oil and gas dividend stocks you can buy.

EPD data by YCharts.

Whether you go back five, 10, or 20 years, the stock's dividends have contributed significantly to shareholder returns. Enterprise Products generates steady cash flows under long-term, fee-based contracts for its midstream energy services and tops that with consistent growth spending. With $6 billion worth of projects coming online this year, Enterprise Products' cash flows should continue to rise. The stock has raised its dividend for 26 consecutive years and yields a hefty 6.9%, making it a rare high-yield dividend growth stock to buy.

4. Brookfield Infrastructure: Yield 4.2%

Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP) owns large assets, such as electric and gas utilities, rail and toll roads, midstream energy pipelines, and data infrastructure, most of which are regulated or contracted and generate stable cash flows that support dividends throughout all economic cycles.

Brookfield Infrastructure has increased its dividend every year since 2009, increasing it by a solid 14% compound annual growth rate (CAGR). It now expects to grow funds from operations (FFO) by over 10% and annual dividends by 5% to 9% in the long term, driven by investments riding global trends, such as digitalization and decarbonization. That, coupled with a dividend yield of 4.2% for the corporate shares or 5% for units of the partnership, makes it a rock-solid dividend stock to buy.

5. American Water Works: Yield 2.4%

American Water Works (NYSE: AWK) is the largest regulated water and wastewater utility in the U.S. In addition to 14 million consumers, the company also serves 18 military bases. It is the kind of low-risk business that can reward shareholders richly over time. American Water Works plans to spend a whopping $40 billion to $42 billion on infrastructure over the next 10 years.

That should ensure a steady base rate growth, which should drive earnings higher. The water utility expects its earnings per share (EPS) to grow at a compound annual rate of 7% to 9% in the long term, and its dividend growth to be in line with EPS. So, with the stock offering a potential hike of at least 7% in dividends per share every year, it's a no-brainer dividend stock to buy now for anyone looking to secure a steady stream of extra income for years, even decades, to come.

6. Waste Management: Yield 1.5%

Waste Management (NYSE: WM) is North America's largest waste management services provider, and it generates recession-resilient revenues and cash flows. Waste Management recently forayed into a lucrative market -- medical waste -- by acquiring the largest player in the industry, Stericycle, for $7.2 billion. Waste Management now expects to generate annual cost synergies of $250 million, which is twice its original expectation. Meanwhile, the company also sees significant growth opportunities in markets such as recycling.

WM data by YCharts.

The company has increased its dividend for 22 consecutive years, growing it at a CAGR of 7.4% over the past three years. Waste Management's stock has delivered a monster performance in the past and could continue to generate big returns, given the company's acquisition and management's goal of paying out 40% to 50% of its free cash flow (FCF) in dividends.

7. Brookfield Renewable: Yield 4.6%

The International Energy Agency projects that global electricity generation from renewable energy sources to jump by 90% from 2023 to 2030. Brookfield Renewable (NYSE: BEPC)(NYSE: BEP) is one of the best stocks to play the renewable energy boom, given its massive and highly diversified portfolio of assets in hydropower, wind, solar, and distributed energy and storage.

Almost 90% of the company's cash flows are contracted, making its dividends stable and reliable. Backed by a huge pipeline, Brookfield Renewable is targeting FFO growth of over 10% and annual dividend growth of 5% to 9% in the long term, making it one of the best dividend growth stocks to buy.

8. Caterpillar: Yield 1.6%

Caterpillar (NYSE: CAT) is a cyclical stock, and its earnings and cash flows ebb and flow with the economy. Yet, the company's dividend history is a testament to its brand power; its global leadership in huge industries, such as construction and mining equipment and off-highway diesel and natural gas engines; and management's prudent and shareholder-friendly capital allocation policies.

CAT data by YCharts.

Caterpillar's projected fall in revenue for 2025 made some investors jittery, but the company put all fears to rest by announcing a 7% dividend hike and marking its 31st straight year of dividend increases. Caterpillar remains committed to returning the bulk of its FCF to shareholders in the form of dividends and share buybacks, making it a solid S&P 500 dividend stock to buy now.

9. Emerson Electric: Yield 1.6%

Emerson Electric (NYSE: EMR) is a Dividend King, one of the handful of publicly listed companies in the U.S. that have increased their dividend payouts for at least 50 years. Emerson's 69-year streak, in fact, is one of the longest among the Dividend Kings. The automation giant makes intelligent devices, control systems, and software for some of the largest sectors and industries, including energy, chemicals, metals and mining, life sciences, and industrials.

Emerson Electric generated a gross margin north of 50% and an operating margin of 18% in 2024, reflecting operational efficiency. Its FCF jumped 23% in the year, and the stock has doubled investors' money in five years. Given the massive growth opportunities in automation and Emerson's commitment to dividends, this dividend juggernaut is a solid stock to double up on.

10. Parker-Hannifin: Yield 1%

Parker-Hannifin (NYSE: PH) is one of the most underrated and overlooked dividend stocks out there. The company has increased its dividend for 69 consecutive years and generated monstrous returns over the years.

PH data by YCharts.

Parker-Hannifin specializes in motion and control equipment and solutions, catering to large industries such as aerospace, defense, and manufacturing. It generated $20 billion in revenue in 2024 but estimates the market size to be around $145 billion, presenting significant growth opportunities.

Over the past three years, Parker-Hannifin grew its revenue at an 8% CAGR. It recently bumped its 2029 financial targets and expects to grow adjusted EPS at a 10% CAGR and generate a FCF margin of 17%, paving the way for bigger dividends.

Should you invest $1,000 in Caterpillar right now?

Before you buy stock in Caterpillar, 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 Caterpillar 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 $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $966,931!*

Now, it’s worth noting Stock Advisor’s total average return is 1,062% — a market-crushing outperformance compared to 177% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

*Stock Advisor returns as of June 23, 2025

Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Emerson Electric, NextEra Energy, and Realty Income. The Motley Fool recommends Brookfield Infrastructure Partners, Brookfield Renewable, Brookfield Renewable Partners, Enterprise Products Partners, and Waste Management. The Motley Fool has a disclosure policy.

10 Dividend Stocks to Double Up on Right Now was originally published by The Motley Fool

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