I love to collect passive income, so I'm always buying dividend stocks, especially those offering higher yields. Each purchase puts me one step closer to my goal of eventually generating enough annual passive income to cover my expenses.
I still have a long way to go before I reach that target, and I'm routinely buying more dividend-paying stocks. Topping my list of stocks to buy this month are Crown Castle (CCI +2.12%), Atlantica Sustainable Infrastructure (AY +0.00%), and Verizon (VZ 0.40%). Here's why I can't wait to buy more shares of these high-yielding dividend stocks this November.
NYSE: CCI
Key Data Points
Plenty of growth ahead
Shares of Crown Castle have gotten hit hard this year, tumbling more than 35% from their peak. While the stock market sell-off has weighed on the infrastructure REIT's stock, it's also facing headwinds from rising interest rates and a merger between two customers reducing demand for its infrastructure in the near term. As a result of that sell-off, Crown Castle's dividend yield has risen to 4.7%.
While Crown Castle expects its growth to decelerate next year, it sees a reacceleration coming. Mobile carriers are investing heavily to build out faster 5G networks, which will require a lot more infrastructure. That means Crown Castle sees a decades-long investment cycle ahead.
That leads the company to believe it can grow its high-yielding dividend at a 7% to 8% annual rate over the long term. While its dividend growth rate has decelerated -- it gave investors a 6.5% raise this year after increasing its payout at a 9% annual rate in recent years -- it should keep growing at an attractive rate in the future. Add that to its already attractive yield, and Crown Castle is a great stock for generating passive income.
NASDAQ: AY
Key Data Points
Ample opportunities to continue growing
Shares of Atlantica Sustainable Infrastructure have shed more than 20% of their value this year. That sell-off has pushed the clean energy company's dividend yield up past 6%.
That lower share price comes even though Atlantica generates a very stable cash flow because it gets 100% of its revenue from long-term contracts or government-regulated rate structures. Meanwhile, its earnings rise as the company benefits from rising contract rates and new investments. Its cash available for distribution has increased by 4% per share through the first half of this year.
Cash flow should continue growing. Atlantica has already committed to invest $160 million to $180 million to acquire several operating renewable energy projects and purchase a few more under development. The company has many sources of future growth, including expanding existing assets, investing in development projects through its strategic partnerships, and making acquisitions. It also has plenty of liquidity to continue making accretive investments. These factors should allow it to keep growing its high-yielding payout.
NYSE: VZ
Key Data Points
A cash flow machine
Verizon's stock price has tumbled more than 30% this year. That's driven the telecom giant's dividend yield up to around 7%.
That big-time payout is on a very solid foundation. The company generated $28.2 billion of cash from operations through the third quarter. That easily funded its $15.8 billion of capital expenses, enabling Verizon to produce $12.4 billion of free cash flow. That provided it with money to cover its $8.1 billion dividend outlay with plenty of room to spare, allowing it to maintain a strong balance sheet.
Verizon's heavy network investments -- including building out its 5G platform -- are laying the foundation for future cash flow growth. That should enable the company to continue increasing its dividend, which it has done in the last 16 years. It currently has the longest dividend growth streak in the U.S. telecom sector.
These high-yielding payouts should continue growing
Crown Castle, Atlantic Sustainable Infrastructure, and Verizon all offer high-yielding dividends compared to the S&P 500's current yield of less than 2%. Even better, they should be able to continue growing their above-average payouts in the coming years. That combination of size and growth makes them excellent for generating passive income. It's why I can't wait to buy more shares of each one this month.
