Dividend stocks not only offer a regular stream of passive income but are also proven wealth-builders, especially if you invest in top-notch dividend growth stocks and reinvest the dividends. Doing so could even earn you monstrous returns over time due to the power of compounding.
I prioritize dividend stability and growth over dividend yield, and with that in mind, I have found 10 incredible dividend stocks you can buy and even double up on right now. The best part is that some of these stocks offer a rare combination of both dividend growth and a high yield.
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1. Realty Income: Yield 5.6%
Realty Income (O 0.68%) is the only stock on this list that pays a monthly dividend. Since Realty Income is a real estate investment trust (REIT), it pays out most of its profits in dividends and has therefore paid a dividend regularly since going public in 1994.
However, Realty Income has also increased its dividend by 130 times since then, largely due to its hugely diversified portfolio of over 15,000 properties that generate rent under long-term, triple-net leases. While the diversity insulates Realty Income from economic shocks, the triple-net lease structure ensures low costs and high margins. Realty Income is on solid footing, but the stock is trading 30% below all-time highs, making it a fantastic high-yield dividend growth stock to buy right now.
2. NextEra Energy: Yield 3.2%
NextEra Energy (NEE 1.89%) is the largest electric utility in America, the world's largest producer of wind and solar energy, and a leader in battery storage. The business combines stable cash flows from utilities with growth from renewables, which explains why NextEra Energy hasn't just paid a regular dividend since 1991 but also increased it every year for over 20 years now.
NextEra Energy's renewables and storage pipeline alone currently stand at almost 300 gigawatts. With the company projecting 6% to 8% annual growth in adjusted earnings per share and around 10% annual dividend growth through at least 2026, it's an attractive blue chip dividend stock to double up on now.
3. Enterprise Products Partners: Yield 6.9%
Enterprise Products Partners (EPD +0.19%) is one of the best oil and gas dividend stocks you can buy.
Whether you go back five, 10, or 20 years, the stock's dividends have contributed significantly to shareholder returns. Enterprise Products generates steady cash flows under long-term, fee-based contracts for its midstream energy services and tops that with consistent growth spending. With $6 billion worth of projects coming online this year, Enterprise Products' cash flows should continue to rise. The stock has raised its dividend for 26 consecutive years and yields a hefty 6.9%, making it a rare high-yield dividend growth stock to buy.
4. Brookfield Infrastructure: Yield 4.2%
Brookfield Infrastructure (BIPC +0.48%)(BIP +0.38%) owns large assets, such as electric and gas utilities, rail and toll roads, midstream energy pipelines, and data infrastructure, most of which are regulated or contracted and generate stable cash flows that support dividends throughout all economic cycles.
Brookfield Infrastructure has increased its dividend every year since 2009, increasing it by a solid 14% compound annual growth rate (CAGR). It now expects to grow funds from operations (FFO) by over 10% and annual dividends by 5% to 9% in the long term, driven by investments riding global trends, such as digitalization and decarbonization. That, coupled with a dividend yield of 4.2% for the corporate shares or 5% for units of the partnership, makes it a rock-solid dividend stock to buy.
5. American Water Works: Yield 2.4%
American Water Works (AWK 2.05%) is the largest regulated water and wastewater utility in the U.S. In addition to 14 million consumers, the company also serves 18 military bases. It is the kind of low-risk business that can reward shareholders richly over time. American Water Works plans to spend a whopping $40 billion to $42 billion on infrastructure over the next 10 years.
That should ensure a steady base rate growth, which should drive earnings higher. The water utility expects its earnings per share (EPS) to grow at a compound annual rate of 7% to 9% in the long term, and its dividend growth to be in line with EPS. So, with the stock offering a potential hike of at least 7% in dividends per share every year, it's a no-brainer dividend stock to buy now for anyone looking to secure a steady stream of extra income for years, even decades, to come.
6. Waste Management: Yield 1.5%
Waste Management (WM +0.68%) is North America's largest waste management services provider, and it generates recession-resilient revenues and cash flows. Waste Management recently forayed into a lucrative market -- medical waste -- by acquiring the largest player in the industry, Stericycle, for $7.2 billion. Waste Management now expects to generate annual cost synergies of $250 million, which is twice its original expectation. Meanwhile, the company also sees significant growth opportunities in markets such as recycling.
The company has increased its dividend for 22 consecutive years, growing it at a CAGR of 7.4% over the past three years. Waste Management's stock has delivered a monster performance in the past and could continue to generate big returns, given the company's acquisition and management's goal of paying out 40% to 50% of its free cash flow (FCF) in dividends.
7. Brookfield Renewable: Yield 4.6%
The International Energy Agency projects that global electricity generation from renewable energy sources to jump by 90% from 2023 to 2030. Brookfield Renewable (BEPC 1.55%)(BEP 0.84%) is one of the best stocks to play the renewable energy boom, given its massive and highly diversified portfolio of assets in hydropower, wind, solar, and distributed energy and storage.
Almost 90% of the company's cash flows are contracted, making its dividends stable and reliable. Backed by a huge pipeline, Brookfield Renewable is targeting FFO growth of over 10% and annual dividend growth of 5% to 9% in the long term, making it one of the best dividend growth stocks to buy.
8. Caterpillar: Yield 1.6%
Caterpillar (CAT +0.14%) is a cyclical stock, and its earnings and cash flows ebb and flow with the economy. Yet, the company's dividend history is a testament to its brand power; its global leadership in huge industries, such as construction and mining equipment and off-highway diesel and natural gas engines; and management's prudent and shareholder-friendly capital allocation policies.
Caterpillar's projected fall in revenue for 2025 made some investors jittery, but the company put all fears to rest by announcing a 7% dividend hike and marking its 31st straight year of dividend increases. Caterpillar remains committed to returning the bulk of its FCF to shareholders in the form of dividends and share buybacks, making it a solid S&P 500 dividend stock to buy now.
9. Emerson Electric: Yield 1.6%
Emerson Electric (EMR +0.48%) is a Dividend King, one of the handful of publicly listed companies in the U.S. that have increased their dividend payouts for at least 50 years. Emerson's 69-year streak, in fact, is one of the longest among the Dividend Kings. The automation giant makes intelligent devices, control systems, and software for some of the largest sectors and industries, including energy, chemicals, metals and mining, life sciences, and industrials.
Emerson Electric generated a gross margin north of 50% and an operating margin of 18% in 2024, reflecting operational efficiency. Its FCF jumped 23% in the year, and the stock has doubled investors' money in five years. Given the massive growth opportunities in automation and Emerson's commitment to dividends, this dividend juggernaut is a solid stock to double up on.
10. Parker-Hannifin: Yield 1%
Parker-Hannifin (PH +0.53%) is one of the most underrated and overlooked dividend stocks out there. The company has increased its dividend for 69 consecutive years and generated monstrous returns over the years.
Parker-Hannifin specializes in motion and control equipment and solutions, catering to large industries such as aerospace, defense, and manufacturing. It generated $20 billion in revenue in 2024 but estimates the market size to be around $145 billion, presenting significant growth opportunities.
Over the past three years, Parker-Hannifin grew its revenue at an 8% CAGR. It recently bumped its 2029 financial targets and expects to grow adjusted EPS at a 10% CAGR and generate a FCF margin of 17%, paving the way for bigger dividends.
