With 2022 drawing to a close, now is an excellent time to start setting goals for the coming year. One financial target most people should consider is growing their passive-income streams. An easy way to do that is to invest in dividend-paying stocks.
Three great options are Community Healthcare Trust (CHCT -0.70%), Enterprise Products Partners (EPD -0.80%), and Verizon (VZ -2.98%). They offer well-above average dividend yields, enabling investors to earn more passive income for every dollar invested. Even better, all three should continue growing their sizable payouts in the coming years. Because of that, they can really supercharge your passive income.
A healthy payout
Community Healthcare Trust currently offers a 6.2% dividend yield. Because of that, a $1,000 investment would generate $62 of annual dividend income. For comparison, investing $1,000 into an S&P 500 index fund would only produce $16 of passive income, given its lower dividend yield of 1.6%.
The real estate investment trust's (REIT) big-time payout is on a firm foundation. Community Healthcare's diversified portfolio of healthcare properties generates very stable rental income. Meanwhile, the company pays a conservative portion of its cash flow to support its big-time dividend (about 70% of its adjusted funds from operations (FFO) in the third quarter).
That enables it to retain some cash to fund new investments. The REIT also has a healthy balance sheet featuring a low leverage ratio and minimal upcoming maturities.
Those features give it the financial flexibility to continue expanding its portfolio. That growth has enabled the REIT to steadily increase its dividend.
Community Healthcare has given its investors a raise every year since its initial public offering in 2015. Given its conservative financial profile and portfolio, the company should be able to continue growing its high-yielding payout in the future.
The fuel to sustain and grow its payout
Enterprise Products Partners has an even bigger current yield of 7.8%. The energy master limited partnership (MLP) can easily support that massive yield.
The company generates very steady cash flow backed by long-term contracts and government-regulated rate structures. Meanwhile, it pays out a conservative portion of its cash flow -- 56% over the last 12 months -- to support its big-time distribution. That enables it to retain lots of cash to fund expansion projects. Enterprise Products Partners also has an excellent balance sheet, with investment-grade credit backed by a leverage ratio below its target range.
Those features give Enterprise Products Partners ample financial flexibility to invest in expanding its midstream operations. The company currently has $5.5 billion of expansion projects underway that should come online over the next few years. That should give it the fuel to continue growing its distribution, which it has done in each of the last 24 consecutive years.
Cashing in on telecommunications
Telecom giant Verizon has a nearly 7% dividend yield these days. That massive payout is on a very sustainable foundation.
The company generates an enormous amount of cash. Cash flow from operations totaled $28.2 billion through the third quarter. That covered its $15.8 billion in capital expenditures and $8.1 billion dividend outlay, with $4.3 billion to spare. Meanwhile, Verizon has a rock-solid balance sheet, with a strong credit rating and a relatively low leverage ratio.
Verizon's investments, which include building out its faster 5G network, are setting it up to continue growing operations and cash flow. Because of that, it should be able to continue expanding its high-yielding dividend. The company delivered its 16th straight year of dividend growth in 2022, the longest streak in the U.S. telecom sector.
Big-time income producers
Community Healthcare Trust, Enterprise Products Partners, and Verizon offer ultra-high-yielding dividends. Even better, this trio should be able to continue growing their big-time payouts in the future. That combination makes them great ways for investors to supercharge their passive income.