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3 Supercharged Dividend Stocks You Can Buy Right Now

By Keith Speights - Jun 27, 2021 at 6:02AM

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Attractive dividends and tremendous returns? Yes, please.

High-flying dividend stocks might seem like an oxymoron. Don't dividend stocks tend to be boring? Not necessarily.

Indeed, several big winners over the last 12 months also offer attractive dividend yields. Some of them still look like smart picks to buy even after their solid gains. Here are three such supercharged dividend stocks you can buy right now.

Person looking at laptop with a screen showing a rising stock chart in the background.

Image source: Getty Images.

Brookfield Infrastructure 

Shares of Brookfield Infrastructure Partners (BIP 0.41%) have soared more than 25% since June 2020. Brookfield Infrastructure Corporation (BIPC 0.80%), which offers a way to buy the same underlying business without the tax complications of a limited partnership, has seen its stock skyrocket more than 50%.

Both stocks pay the same dividend. However, because of BIPC's impressive run, its yield of close to 2.8% is well below BIP's dividend yield of 3.8%.

Brookfield Infrastructure posted record results for the first quarter of 2021. Its funds from operations (FFO) jumped 20% year over year. Earnings vaulted nearly 60% higher. The company benefited from both organic growth and acquisitions.

Infrastructure is definitely in right now. Business is booming for Brookfield's utilities, railroads, ports, pipelines, data centers, and cell towers. The company hopes to succeed with its hostile takeover attempt of Inter Pipeline, a deal that would boost Brookfield's revenue even more.

With the global economy poised to expand as COVID-19 restrictions ease, both of the Brookfield Infrastructure stocks should continue to deliver solid returns and great dividends.

CVS Health

CVS Health (CVS 0.15%) was hit pretty hard by the COVID-19 pandemic. However, the healthcare stock has bounced back in a big way, jumping more than 20% so far this year.

Sure, CVS's dividend yield of 2.4% isn't the juiciest you'll find. However, the yield has fallen as the company's shares have risen. That's not a bad problem to have, especially when the dividend remains solid.

Even after its strong performance this year, CVS Health's valuation looks appealing. Its shares trade at a little over 11 times expected earnings. The S&P 500's forward earnings multiple is nearly two times higher. 

Arguably the greatest strength for CVS Health is its diversification across the healthcare sector. The company ranks as a top pharmacy retailer, pharmacy benefits manager, and health insurer. With Baby Boomers aging, CVS should have significant growth opportunities in the future.

Enterprise Products Partners

Enterprise Products Partners (EPD 0.63%) stands out as another great dividend stock that's delivered sizzling returns in 2021. Shares of the midstream energy company have vaulted more than 20% higher year to date.

Adding EPD's dividend into the mix boosts its total return by quite a bit. The company's dividend currently yields close to 7.5%. With such a high yield, EPD doesn't have to generate much share appreciation to still be a solid winner for investors.

Can the company keep the dividends flowing at current levels? Probably so. EPD continues to generate strong distributable cash flow. A global economic recovery should improve the company's fortunes. 

Yes, the shift from fossil fuels to renewable energy sources could negatively impact EPD to some extent. However, this transition will take decades. In the meantime, EPD is one of a handful of midstream companies with killer advantages such as scale of operations and diversification.

Keith Speights owns shares of Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, and Enterprise Products Partners. The Motley Fool recommends BROOKFIELD INFRA PARTNERS LP UNITS, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, CVS Health, and Enterprise Products Partners. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Enterprise Products Partners L.P. Stock Quote
Enterprise Products Partners L.P.
EPD
$27.30 (0.63%) $0.17
CVS Health Corporation Stock Quote
CVS Health Corporation
CVS
$106.43 (0.15%) $0.16
Brookfield Infrastructure Partners L.P. Stock Quote
Brookfield Infrastructure Partners L.P.
BIP
$41.40 (0.41%) $0.17
Brookfield Infrastructure Corporation Stock Quote
Brookfield Infrastructure Corporation
BIPC
$48.20 (0.80%) $0.38
Inter Pipeline Ltd. Stock Quote
Inter Pipeline Ltd.
IPL

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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