3 High-Yield Dividend Stocks I Plan to Buy in March

My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an increasing stream of passive income. I make a few new income-focused investments each month as I work to grow my passive income to the point where it will eventually exceed my expenses.

This month, I plan to buy a few more shares of Chevron (CVX 0.37%), Brookfield Renewable (BEP 0.19%) (BEPC 0.09%), and Mid-America Apartment Communities (MAA 1.60%). Here's why I believe they will help me on my steady march toward financial independence.

The fuel to continue increasing its dividend

Chevron pays a 4.3%-yielding dividend. That's triple the 1.4% yield of the S&P 500.

The oil giant has done an exceptional job increasing its dividend over the years. It delivered its 37th straight year of dividend growth in 2024, boosting its payment by another 8%. That continued its strong dividend growth rate. It has expanded its payout faster than the S&P 500 over the last five years and at more than double the rate of its closest peer.

Chevron should have plenty of fuel to continue increasing its dividend. The company's high-return capital program will drive 10%-plus annual free cash flow growth through 2027, assuming oil averages around $60 a barrel (well below the current price in the high $70s). That would give it the funds to invest in high-return capital projects, boost its dividend, and buy back shares at the low end of its $10 billion-$20 billion annual target range (enough to repurchase 3% of its outstanding shares at the current price). It could buy back shares at the top end of that range when crude is over $70 a barrel (enough to retire 6% of its outstanding shares each year). Meanwhile, Chevron's pending acquisition of Hess has the potential to enhance and extend its growth outlook. Finally, while oil and gas are the company's main fuel source, it's investing in several lower-carbon energy businesses to drive its future expansion.

Powerful growth ahead

Brookfield Renewable's dividend yield is currently around 6%. The renewable energy giant has delivered at least 5% annual dividend growth for the past 13 years. That should continue, with Brookfield aiming to increase its payout by 5% to 9% annually over the long term.

The company should have ample power to deliver on that goal. Brookfield's existing power purchase agreements contain inflation escalators that should grow its funds from operations (FFO) per share by 2% to 3% per year. Meanwhile, margin enhancement activities should add another 2% to 4% annually. On top of that, Brookfield has a massive pipeline of development projects that should power another 3% to 5% in annual FFO-per-share expansion. Those organic drivers alone can support its dividend growth target.

Acquisitions could push its FFO growth rate above 10% annually. The company routinely recycles capital (selling mature assets to fund higher-return new investments) to enhance its ability to make acquisitions. It agreed to deploy $2 billion last year on deals that will supply it with increasing streams of cash flow to support its rising dividend.

Growing passive income from rental properties

Mid-America Apartment Communities, or MAA, pays a 4.7%-yielding dividend. The apartment-focused real estate investment trust (REIT) has been an excellent passive income producer over the years. It declared its 120th consecutive quarterly dividend in early 2024. While the REIT hasn't increased its dividend every year, it has never cut its payment and has steadily raised it over time, including by 5% earlier this year.

That stable upward trend in its dividend should continue. The company's existing portfolio delivers consistent net operating income growth. The REIT focuses on owning properties in the high-growth Sun Belt region that benefit from high occupancy levels and steadily rising rental rates. It will spend money to renovate older units, which helps keep occupancy up and enables it to charge a higher rental rate.

Meanwhile, MAA also invests in new apartment community developments. It currently has five projects under construction that it expects to complete over the next two years. It plans to begin four to six more projects over the next two years. On top of that, the REIT will opportunistically acquire developable land and operating communities. For example, it bought two recently developed communities during the fourth quarter of last year for $210 million. It also purchased a half-acre land parcel near one of its current development projects. Growing rental income from its existing portfolio and new additions should enable MAA to continue steadily increasing its attractive dividend.

Reliably rising income streams

Chevron, Brookfield Renewable, and MAA pay high-yielding dividends that steadily rise. Because of that, they'll help me on my march toward financial independence. That's why I plan to buy a few more shares of each this month, which likely won't be the last time I add to these terrific income stocks.