Unlock the Power of Passive Income: 3 Top Dividend Stocks to Buy Now
Gaining financial freedom is within reach when you harness the potential of passive income. By investing in dividend stocks, you can reduce your reliance on active income and enjoy a more stress-free life. This November, consider adding these three top dividend stocks to your portfolio: Realty Income, Kinder Morgan, and Verizon Communications.
Realty Income: A Dependable Source of Passive Income
As a real estate investment trust (REIT), Realty Income is dedicated to delivering consistent monthly dividends that grow over time. With a 30-year track record of increasing its payout, this REIT offers a yield of over 5%, significantly higher than the average dividend stock. For every $100 invested, you can expect around $5 in annual passive income, compared to less than $1.50 from the average dividend stock.
The company’s strong financial profile and balance sheet provide the flexibility to continue making acquisitions, taking advantage of the multitrillion-dollar commercial real estate market in the U.S. and Europe. With rent growth and acquisitions driving its adjusted funds from operations (FFO), Realty Income is poised to continue increasing its dividend.
Kinder Morgan: A Leading Pipeline Company with Stable Cash Flows
Kinder Morgan operates the country’s largest natural gas pipeline system, along with product pipelines, terminals, and carbon dioxide infrastructure. Its midstream assets generate stable cash flows, backed by government-regulated rate structures and long-term, fixed-rate contracts. The company pays out over half of its cash flow in dividends and retains the rest for expansion projects and maintaining a strong financial foundation.
With $5.2 billion in expansion projects, including a large natural-gas pipeline expansion, Kinder Morgan is well-positioned to grow its cash flow and increase its dividend, which it has done for seven consecutive years.
Verizon Communications: A High-Yielding Dividend with a Solid Foundation
Verizon has delivered 18 consecutive annual dividend increases, boasting the longest current streak in the U.S. telecom sector. The payout currently yields 6.5% and has grown safer over time. The company generates more cash than it needs to cover its capital expenses and dividends, using the excess to strengthen its balance sheet.
Verizon plans to acquire Frontier Communications in a $20 billion all-cash deal, enhancing its fiber offerings and growing its earnings and free cash flow. With its capital investments and the Frontier deal boosting its earnings, Verizon should be able to continue increasing its dividend.
Why These Dividend Stocks Stand Out
Realty Income, Kinder Morgan, and Verizon offer higher-yielding dividends backed by solid financial metrics. All three companies have visible growth ahead, making them great stocks to buy for passive income this month. By adding these dividend stocks to your portfolio, you can unlock the power of passive income and take a significant step towards achieving financial freedom.
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