Stock Grab Bag: 3 Diverse Sectors; the Same Commitment to Long-Term Income

Here are three of the best long-term dividend stocks investors looking for income in retirement may want to consider adding right now.

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For investors who are planning on building a long-term, income-generating portfolio, buying high-quality dividend stocks can be their best bet. However, diversification is also a factor that they must keep in mind in order to spread out risks. 

In this vein, here are three stocks from three different sectors that investors can grab in order to facilitate long-term capital appreciation.  

Fortis

Fortis (TSX:FTS) is a multinational gas and electricity utilities operator. For the ongoing quarter, this company has increased its dividend payment to $0.59 per share, marking yet another increase (and its 50th such consecutive hike). 

This indicates a 4.4% growth from last year and continues Fortis’s impressive track record of providing increasing shareholder capital return to its investors. With a dividend yield of 4.3%, Fortis is slightly higher than the sector average and is a great company to consider in terms of stability.

Fortis also saw strong financial performance in the second quarter (Q2) of 2023. Its net earnings increased to US$294 million (US$0.61/common share). The company also had capital expenditures worth US$2 billion in the first half of 2023, thus staying on track with its US$4.3 billion annual investment plan.     

Brookfield Renewable

Brookfield Renewable (TSX:BEP.UN) invests in renewable power-generating facilities across North America, Asia, Europe, Brazil, and Colombia. For the last quarter, this company had declared a dividend of $0.45 per share. It indicates a dividend yield of 6.4%, which is quite higher in comparison to the 2.992% sectorial average. 

Brookfield Renewable recently reported 10% funds from operations (FFO) per unit growth in Q2 2023 compared to last year. In figures, this amounts to US$312 million, or US$0.91 per unit year to date. Also, with its institutional partners, this company has signed transactions worth US$1.3 billion.

The company has also commissioned the Brazilian 1.2-gigawatt Janaúba solar complex’s final stage, along with almost 1,500 megawatts capacity year to date. Additionally, it has signed contracts to deliver an extra 2,000-gigawatt hours/year of generation, in which 900 gigawatt hours will go to corporate off-takers. 

These financial and developmental activities will help the company provide sustainable dividend payments in the long run.   

Brookfield Infrastructure Partners

Brookfield Infrastructure Partners (TSX:BIP.UN) is a multinational operator of data companies, midstream, transport and utilities. The latest data states that this organization declared a dividend payout of $0.52 per share for the last quarter. The dividend yield was 5.4%, which was a bit higher than the 3.91% sectorial average. 

Additionally, this company had an excellent performance in Q2 2023. It had a net income of US$378 million, which is a significant jump from last year’s same quarter’s US$176 million. Apart from this, the company’s FFO earnings reached US$552 million, indicating an 8% rise during the aforementioned time. 

Investors in BIP stock have seen total shareholder returns of 68% over the last three years. During this time, this stock’s price increased by 53%, while the market return (excluding dividends) was around 33%.  

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Infrastructure Partners, Brookfield Renewable Partners, and Fortis. The Motley Fool has a disclosure policy.

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