If you'd like to earn more passive income, you've come to the right place. Read on to learn more about three of the best dividend stocks available to you today.
1. Brookfield Renewable
If you're searching for a smart way to profit from the clean energy megatrend, consider Brookfield Renewable (BEPC +0.00%). The investment company specializes in acquiring and developing cash-generating sustainable energy and decarbonization projects.
NYSE: BEPC
Key Data Points
Governments and businesses around the world are stepping up their efforts to combat climate change. In turn, demand is rising for renewable power sources such as solar, wind, and hydroelectric. Brookfield has wisely built a strong presence in all these increasingly lucrative areas. The company has also prudently diversified its operations, which now span across five continents.
Following a slate of promising investment deals, Brookfield expects to grow its cash production by more than 10% annually over the next half-decade. That should enable it to further its 12-year streak of raising its already sizable cash payout to investors. Brookfield Renewable's shares currently yield over 5%.
2. Enbridge
Hefty cash distributions are also Enbridge's (ENB 0.90%) strong suit. The energy infrastructure specialist sports a 7.7% yield and boasts a 28-year streak of annual dividend raises.
NYSE: ENB
Key Data Points
Enbridge's vast pipeline network safely transports about 30% of the crude oil produced in North America and 20% of the natural gas consumed in the U.S. These valuable assets earn revenue that's secured by regulated cost-of-service arrangements and long-term contracts, which enable Enbridge to produce a stream of steadily growing cash flow across market cycles.
Moreover, Enbridge is well-situated to benefit from the rapid growth of the liquefied natural gas (LNG) market. The company owns valuable transmission assets that connect to key export sites on both the West and Gulf coasts.
Enbridge is also building an impressive portfolio of lower-carbon energy investments. Major areas of focus are renewable natural gas, carbon capture and storage, and hydrogen production.
Looking ahead, Enbridge expects to grow its earnings by about 5% annually. This anticipated profit growth should allow it to reward investors with more dividend raises in the coming years.
3. Ares Capital
If you're striving to maximize your current dividend income, take a look at Ares Capital (ARCC +2.42%). This dependable passive income producer's yield presently stands at a whopping 9.7%.
NASDAQ: ARCC
Key Data Points
As the largest publicly traded business development company (BDC) in the U.S., Ares provides growth financing to privately owned businesses with sales of $10 million to $1 billion. Ares prudently manages risk by catering to companies with reliable cash flow and veteran leadership. It also diversifies its loans across a broad array of defensive industries and geographic locations. As of Sept. 30, Ares' $21.9 billion portfolio held debt and equity investments in 490 companies.
As a BDC, Ares is designed to pass at least 90% of its profits on to its shareholders. It's able to pay out such large dividends thanks to the attractive interest rates it earns on its loans. This income-generating approach should continue to serve Ares' investors well. The steadfast dividend stock has produced annualized gains of 13% since its initial public offering (IPO) in 2004.
