If you're looking for steady income, you're not going to get much of it by putting your cash in money market funds. Low interest rates have also kept bond yields really low.
There is an alternative that can give you much more attractive yields -- dividend stocks. Of course, not every stock that pays a dividend is a smart pick. Here are three dividend stocks with yields of more than 3% that appear to be great candidates to buy right now.
1. Brookfield Infrastructure Partners
Brookfield Infrastructure Partners (BIP 0.42%) offers a juicy dividend yield of 3.8%. Its yield has never dipped below 3.5%.
There's a key reason why Brookfield Infrastructure Partners' dividend track record is so impressive: Its business is remarkably stable. The company, as its name indicates, owns infrastructure assets. These assets -- including cell towers, data centers, pipelines, ports, railroads, and toll roads -- generate steady cash flow month in and month out.
This stable business model gives Brookfield Infrastructure a nice safety cushion during challenging economic periods. During the COVID-19 pandemic, the company's financial performance wasn't impacted much at all. Brookfield Infrastructure Partners also has tremendous growth prospects with what the company calls an "infrastructure investment supercycle" beginning.
Brookfield Infrastructure Partners is a limited partnership (LP), which could complicate your taxes somewhat. You can also invest in Brookfield Infrastructure Corporation (BIPC -1.54%), which is the same underlying business but organized as a traditional corporation to avoid any tax issues. Although the related stock pays the same dividend as the LP, its yield is under 3% because of a lower share price.
2. Brookfield Renewable Partners
There's another stock related to Brookfield Infrastructure Partners that income-seeking investors will probably love: Brookfield Renewable Partners (BEP -1.37%). Its dividend yield currently stands at close to 3.3% and has never fallen below 3%.
Both Brookfield Renewable and Brookfield Infrastructure are managed by the same general partner, hence their similar names. Brookfield Renewable Partners, though, focuses on renewable energy. It operates hydroelectric, solar, and wind power generation facilities across the world.
Renewable energy is enjoying greater demand than ever. Major countries have set ambitious goals for carbon reduction. President-elect Joe Biden wants to put the U.S. economy on a path to reach 100% clean energy usage by 2050. Brookfield Renewable Partners is in a great position to profit from the green wave.
As you might have guessed from its name, Brookfield Renewable Partners is an LP, too. You can also buy shares of Brookfield Renewable Corporation (BEPC 0.87%), but its yield is below 3%.
3. Innovative Industrial Properties
Innovative Industrial Properties (IIPR -1.56%) provides a way to derive steady income from another kind of green wave. It's a real estate investment trust (REIT) that focuses on the U.S. medical cannabis industry. IIP's dividend currently yields a little over 3%.
In case you didn't know it, the medical cannabis market in the U.S. is booming. IIP's Q3 results show it: The company posted revenue that nearly tripled year over year. Its adjusted funds from operations (a top profitability metric for REITs) also nearly tripled.
IIP's business model is straightforward. The company buys properties from medical cannabis operators. It then leases those properties back to the operators. Both sides win, with IIP receiving solid recurring revenue and its tenants accessing much-needed capital.
You probably won't have to worry much about IIP's dividend falling; it's increased by 680% since 2017. IIP owns properties in 16 states, but another 19 states where the company doesn't yet have a presence have legalized medical cannabis. This gives the cannabis-focused REIT plenty of opportunities to continue growing for a long time to come.