Analysis paralysis could strike any investor trying to figure out which dividend stocks to buy. After all, nearly 6,000 stocks that trade on U.S. stock exchanges pay dividends.
Some of those stocks stand head and shoulders above the pack, though, by offering great dividend yields and growth prospects. Here are my picks for the smartest dividend stocks to buy with $10,000 right now.
1. Ares Capital
If yield is your top priority, Ares Capital (ARCC +0.97%) should be especially appealing. This business development company (BDC) pays a forward dividend yield of 9.6%. Even better, it has either maintained or grown the dividend for more than 16 consecutive years.
Don't worry that Ares Capital's stock hasn't performed well in 2025. Since the company went public in 2004, its total return has trounced the S&P 500's (^GSPC +0.13%). I suspect this trend will continue over the rest of this decade and beyond.
NASDAQ: ARCC
Key Data Points
One reason for my confidence is that business is picking up for the BDC. CEO Kort Schnabel said in the company's third-quarter earnings call last month that he's seeing a "healthier market backdrop." Schnabel noted that the volume of transactions that Ares Capital is reviewing has accelerated, with more deals reviewed in September than in any other month this year.
The other reason I'm bullish relates to the long-term trend of borrowers shifting to private capital. Ares Capital is well-positioned to profit from this trend as the largest publicly traded BDC with strong industry relationships.
2. Brookfield Infrastructure Partners
You'll get a stake in nearly every kind of infrastructure asset under the sun by investing in Brookfield Infrastructure Partners (BIP +2.45%). This limited partnership (LP) owns cell towers, data centers, electricity transmission lines, natural gas pipelines, rail, semiconductor manufacturing foundries, terminals, and toll roads across the world.
Image source: Getty Images.
Brookfield Infrastructure's distribution yield is a juicy 5%. The infrastructure company increased its distribution by a compound annual growth rate of 9% between 2009 and 2025. Its target is to continue growing the distribution by 5% to 9% each year.
I like the stable cash flow that this company generates. Roughly 85% of Brookfield Infrastructure's funds from operations (FFO) are regulated or contracted. Around the same percentage of FFO is protected from inflation.
NYSE: BIPC
Key Data Points
Brookfield Infrastructure should be able to continue growing FFO through a smart strategy of acquiring new infrastructure assets, enhancing their value, and selling mature assets to raise capital to reinvest. If you don't like the tax complications with owning a limited partnership, that's no problem. You can buy shares of Brookfield Infrastructure Corporation (BIPC 2.43%). It's the same underlying business, albeit with a lower (but still attractive) dividend yield.
3. Enbridge
Want an outstanding dividend track record? Enbridge (ENB +1.72%) could be just the ticket. This energy company has increased its dividend for 30 consecutive years. Its forward dividend yield stands at 5.7%
Like Brookfield Infrastructure, Enbridge offers considerable stability. The company has predictable cash flows and a strong balance sheet. Roughly 98% of its earnings before interest, taxes, depreciation, and amortization (EBITDA) are regulated or contracted under take-or-pay arrangements. Tariffs don't present a major threat to Enbridge's business, either.
NYSE: ENB
Key Data Points
All of this is possible due to Enbridge's business model. Enbridge ranks as the largest natural gas utility in North America by volume. Its pipelines transport 20% of the natural gas consumed in the U.S. and 30% of crude oil produced in North America. The company has also expanded into renewable energy, with a capacity of generating around 7.2 gigawatts of electricity.
Enbridge's growth prospects look good, too. The demand for electric power is rising, partially due to data centers hosting artificial intelligence applications. In addition, coal plants are being converted to use cleaner-burning natural gas. These trends bode well for Enbridge's natural gas distribution and midstream operations.
