Any time is a good time to buy a great dividend stock. But what exactly makes a dividend stock great? Obviously, it has to offer an attractive dividend that's likely to increase. Truly great dividend stocks also hold the potential to deliver solid growth.
Fortunately, there are quite a few great dividend stocks on the market. Here are three that'll make you richer in the fourth quarter and beyond.
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1. Brookfield Infrastructure
Infrastructure reigns as the hot topic in Washington, D.C. right now. But whatever happens with President Biden's proposed infrastructure bill, this is an area where a lot of money will be made. Brookfield Infrastructure (BIP -0.47%) (BIPC 0.32%) should be one of the biggest winners.
The company owns cell towers, data centers, pipelines, ports, railroads, toll roads, and more. Its infrastructure assets span four continents -- North America, South America, Europe, and Asia.
Brookfield Infrastructure's dividend yield stands at 3.4% for the limited partnership shares (which trade under the BIP ticker) and 3.6% for the corporation shares (which trade as BIPC). The company has increased its distribution by 119% over the last 10 years.
The original limited partnership stock has delivered an annualized return of 18% since it first traded in 2008. Brookfield Infrastructure continues to have strong growth prospects over the long term with major infrastructure upgrades across the world almost certainly on the way.
2. Devon Energy
Which stock claims the highest dividend yield in the S&P 500? Pat yourself on the back if your answer was Devon Energy (DVN -0.89%). And the contest isn't a close one.
Granted, Devon's fixed-plus-variable dividend can be somewhat confusing. The company's fixed dividend yield is only 1.1%. However, it's the variable portion of Devon's dividend that adds the sizzle. Devon projects a total dividend yield of more than 10% based on the midpoint of its guidance for the second half of this year.
The oil and gas producer has paid a dividend for 28 consecutive years. While it hasn't increased the dividend payout in all of those years, the dividend has risen by a compound annual growth rate of more than 10%.
A sustained global economic recovery should boost Devon's fortunes over the near term. While fossil fuels are likely to diminish in importance over the long term as countries shift more to renewable energy sources, Devon should still be able to grow for years to come.
3. Innovative Industrial Properties
Innovative Industrial Properties' (IIPR 0.06%) dividend yield of 2.6% is perhaps a little deceiving. The company has increased its dividend payout by 10X over the last five years. However, IIP's share price has soared more than 1,100% during the period -- holding its dividend yield down.
You can count on IIP's dividends continuing to flow. The company is organized as a real estate investment trust (REIT). As a REIT, it must return at least 90% of taxable income to shareholders in the form of dividends.
It's also a good bet that IIP's dividends will keep growing. This REIT focuses on the rapidly expanding regulated cannabis market. As IIP leases more properties to cannabis operators, its earnings will rise -- and so will its dividend.
IIP currently owns 75 properties in 19 states. These states include some of the hottest cannabis markets in the U.S. IIP's tenants also include several of the top multi-state operators in the cannabis industry. The company should have ample opportunities to grow larger as it expands its relationships with key tenants and moves into other states that have legalized cannabis.
