There's something wonderful about having sweet, sweet cash deposited into your brokerage account on a regular basis. If that sounds appealing to you, read on. The following companies would be happy to deliver bountiful streams of cash dividends to you quarter after quarter and year after year.
A new spin on a venerable business
Kenvue (KVUE 0.31%) may be new to the public markets, but it's been helping people care for their families for more than a century. It's now the No. 1 pure-play consumer health company by revenue after being spun off from industry titan Johnson & Johnson earlier this year.
With leading brands like Listerine, Neutrogena, and Aveeno, Kenvue's science-backed products are used by over a billion people across the globe. And make no mistake, Kenvue may be smaller than former parent J&J, but with $15 billion in sales in 2022, it's still a giant in the healthcare industry.
NYSE: KVUE
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Investors should be aware of lawsuits regarding the potential risks of Kenvue's popular Tylenol painkiller, but the litigation is in its early stages, and it's possible the claims will be dismissed. For its part, Kenvue is adamant that acetaminophen, the active ingredient in Tylenol, is safe and "one of the most studied medications in history."
Moreover, Kenvue's revenue is diversified across essential health, self-care, and beauty products, which helps to reduce the risks for investors if any one product underperforms. This broad diversification, as well as the everyday usage nature of its products, enables Kenvue to generate bountiful and consistent cash flow.
Management is committed to passing the lion's share of this cash on to investors. Kenvue recently declared a quarterly dividend of $0.20 per share, which equates to an annual yield of roughly 4%.
The fuel to power your passive income growth
Sizable cash payouts are also the domain of Enbridge (ENB 0.57%). The energy giant currently offers a yield of 7.6%, as well as the likelihood of further dividend increases.
NYSE: ENB
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Enbridge owns and operates critical infrastructure across the U.S. and Canada. Its pipelines transport oil and natural gas from major supply areas to key distribution points. These assets generate dependable and predictable revenue in nearly all market environments.
Enbridge is also investing prudently in lower-carbon energy solutions. Key projects include carbon capture and storage, renewable natural gas, and hydrogen production facilities.
Together, this combination of reliable revenue and attractive growth opportunities has enabled Enbridge to deliver enviable returns to its investors. The energy titan has grown its dividend at an average rate of 10% annually over the past 28 years.
As a more mature business, Enbridge's future payout growth might be closer to 5% annually. But with its current yield of nearly 8%, it won't take much in the way of dividend growth for Enbridge's investors to enjoy double-digit total returns in the years ahead.
Dividends galore
If you'd like to earn an even higher yield on your investment, check out Ares Capital (ARCC +0.05%). This stalwart income generator currently offers a dividend yield of 10%.
Ares Capital is the largest publicly traded business development company (BDC) in the U.S. It lends capital to and makes investments in privately owned middle-market businesses. These are typically companies with revenue between $10 million and $1 billion.
NASDAQ: ARCC
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To limit risk, Ares Capital focuses its efforts on high-quality borrowers with steady profits and proven management teams. It also spreads its investments across a range of industries and geographies. All told, its portfolio held positions in 475 companies and was valued at roughly $22 billion as of June 30.
As a BDC, Ares Capital is required to distribute at least 90% of its profits to its shareowners to avoid tax penalties. So, it takes nearly all the interest it earns from its loans and the capital gains from its investments and passes them on to its investors via sizable dividend payments.
It's a proven, wealth-building strategy. Since its initial public offering (IPO) in 2004, Ares Capital has delivered annualized returns of 12% to its shareholders.
Dividends aren't guaranteed, but these three companies are rock-solid choices for investors looking for passive income.
