If you'd like to earn more dividend income in 2024, you've come to the right place. The following three companies are slated to deliver steadily growing streams of passive income to their investors in the years ahead.
1. Enbridge
Even as the world shifts toward renewable power, the need for oil and natural gas is expected to persist for decades to come. Enbridge (ENB +0.87%) builds and operates vital infrastructure that connects its customers to these dependable and cost-effective energy sources.
NYSE: ENB
Key Data Points
Enbridge's pipelines move roughly 40% of the crude oil imported by the U.S. and 20% of the natural gas used in the country. The revenue generated from these indispensable assets is secured by regulated cost-of-service agreements that permit Enbridge to earn reliable profits across economic cycles. That energy giant, in turn, can easily afford to pay a hefty cash distribution -- which currently yields a whopping 7.6% -- to its investors.
Moreover, Enbridge's shareholders are likely to see their cash payouts swell. The infrastructure titan has grown its dividend consistently for 29 years. Acquisitions, the growth of the liquified natural gas (LNG) market, and an expanding portfolio of renewable power investments should all help to boost Enbridge's earnings in the decade ahead.
2. Ares Capital
Massive dividends are also the domain of Ares Capital (ARCC +1.53%). This proven wealth builder is currently offering you a mouthwatering 9.5% yield.
NASDAQ: ARCC
Key Data Points
The business development company (BDC) supplies growth capital to middle-market businesses. These are typically privately owned enterprises with revenue of between $10 million and $1 billion. These companies tend to have greater borrowing needs than small businesses but lack the banking relationships of large corporations.
Importantly, Ares reduces risk by lending to borrowers with consistent cash flow and seasoned leadership. It also spreads its loans across a variety of industries that tend to hold up well in challenging market environments. Ares' $22 billion portfolio had debt and equity positions in 490 companies as of the end of the third quarter.
As a BDC, Ares must send at least 90% of its net income to its shareholders to avoid tax penalties. The company posted per-share earnings of $0.89 in the third quarter, easily covering its dividend payout of $0.48 per share.
With inflation moderating, and fears of a near-term recession abating, loan default rates are likely to remain low. That should mean more interest income for Ares, and large cash dividends for this leading BDC's investors.
3. Brookfield Renewable
Clean energy leader Brookfield Renewable Corporation (BEPC +0.00%) is another intriguing passive income producer. The investment company excels at identifying sustainable energy projects with attractive economics -- and passing its profits on to its stockholders via steadily growing dividend payments.
NYSE: BEPC
Key Data Points
Climate change is forcing governments and businesses around the world to ramp up their decarbonization efforts. The forward-thinking Brookfield, which has built an impressive collection of solar and wind power-producing assets, is well-positioned to benefit from this soaring demand for renewable energy.
CEO Connor Teskey highlighted these attractive growth prospects in Brookfield's third-quarter earnings call. "Over the past five years, the amount of clean energy procured annually by corporations has increased by almost 10 times," Teskey said. "And looking forward, we do not expect this trend to slow down."
Brookfield believes its well-stocked development pipeline will help it grow its profits by over 10% annually over the next five years. That should allow this dividend stalwart to reward its shareholders with larger cash payments. Brookfield Renewable's stock already yields more than 4.5% annually.
