If you are trying to build an income portfolio, the only way to do so is by investing in quality dividend stocks that have a history of consistently increasing their dividends. Also, with rising interest rates, economic uncertainty, and recession, it is time to add some recession-defensive stocks that offer great wealth generation.
Here are the three stocks to add to your portfolio that can help you with long-term wealth generation.
Fortis
Fortis (TSX:FTS) is one of the leading North American electric and gas utility companies. It has a well-diversified portfolio and has recently stirred the media with its fourth-quarter (Q4) dividend increase. It marks 50 years of consecutive dividend increases.
The company has increased its Q4 dividend by 4.4%. The company has also released their 2024-2028 Capital Plan, which has increased by $2.7 million from the 2023-2027 plan. This growth is backed by the Inflation Reduction Act 2022.
Brookfield Renewable
Brookfield Renewable Partners (TSX:BEP.UN) has recently announced its Q2 reports for this financial year. The company has reported its FFO to be $312 in this particular quarter. It portrays a 10% growth as compared to the previous year.
The company has also been another frequent name in the list of quality dividend payers. Currently, it has a price-to-earnings ratio of 103.9 and has recently announced its quarterly dividend of $0.3375 per share, payable on September 29, 2023.
Brookfield Infrastructure Partners
Another Brookfield success story, Brookfield Infrastructure Partners (TSX:BIP.UN), is one of the largest operators of critical global infrastructure networks. Based in Canada, the company supports the growth of corporations and helps to mitigate risks related to infrastructure implementation.
As of August 2023, the projected annual revenue for Brookfield Infrastructure Partners is US$11,997 million (approx). The average dividend yield for the company for the last five years stands at 4.36%. Additionally, Brookfield has seen a slight increase in its dividend growth rate at 0.18% over the past three years. It is safe to say that the company’s consistent dividend payout makes it an ideal stock for long-term investors.
Bottom line
The renewable energy sector holds immense growth potential. Hence, investing in stocks of renowned companies from this sector can provide stable, long-term income. Also, there have been multiple investments and initiatives to make renewable more accessible worldwide. Hence, adding these two stocks to your portfolio can benefit significantly in your long-term, wealth-building goal.
