Two top dividend stocks to consider buying in December are Brookfield Infrastructure (BIPC) and Enbridge (ENB). Both companies offer high-yielding dividends with steady growth, making them excellent investments for passive income and potential double-digit total returns.
Brookfield Infrastructure has increased its dividend every year since its formation 15 years ago, with a 9% compound annual growth rate. The company currently offers a 4% dividend yield, which is more than three times higher than the S&P 500’s 1.2% yield. Brookfield expects to grow its dividend payout ratio to around 67% of its funds from operations (FFO) this year, putting it within its 60%-70% target range.
The company also has a strong investment-grade balance sheet with lots of liquidity, and expects to continue growing its FFO at a more than 10% annual rate. Its organic growth drivers include inflation-linked rate increases, volume growth as the global economy expands, and development projects. Brookfield currently has a record backlog of $8 billion of projects.
In contrast, Enbridge has increased its dividend for 30 straight years, with a 6% dividend yield. The company has one of the lowest-risk business models in the energy sector, with about 98% of its earnings coming from stable cost-of-service or contracted assets. Enbridge also has a strong investment-grade balance sheet and a massive backlog of commercially secured expansion projects.
Both companies have solid growth prospects, and their dividend yields combined with earnings growth rates should result in total returns in the double digits in the coming years. With low-risk profiles and high-growth potential, Brookfield Infrastructure and Enbridge are top dividend stocks to buy in December for those seeking passive income and potentially lucrative opportunities.
Source: https://finance.yahoo.com/news/2-top-dividend-stocks-buy-091800351.html