With plenty of high-quality Canadian stocks trading off their highs heading into 2024 and offering higher dividend yields as a result, investors have a significant opportunity to buy these stocks now and lock in superior income for 2024 and beyond.
There’s no question that with all the uncertainty in the economy, investors have to be cautious. Many still expect a recession to materialize in the near term, and that could impact the profitability of numerous stocks. In some severe cases, it could even cause bankruptcy.
However, while there is certainly more risk in this environment to be aware of, there are also some incredible opportunities to buy high-quality stocks while they are undervalued.
Not to mention, no matter how much uncertainty there is in the economic environment, investors should always ensure they have the confidence to hold the stocks that they’re looking to buy for years to come.
So, with that in mind, while there are many opportunities for investors to consider now, here’s my top dividend stock if you’re looking to boost your passive income in 2024.
One of the top dividend stocks to buy for 2024 and beyond
It’s always important to have a diversified portfolio, especially heading into 2024 when there is so much uncertainty. You don’t want to be too conservative in case we end up seeing a soft landing and possibly no recession at all.
You also don’t want to own only higher-risk stocks in this environment in case the economy continues to worsen throughout 2024.
That’s why if I had to choose just one dividend stock to buy to boost my income in 2024, it would be Brookfield Infrastructure Partners (TSX:BIP.UN), a stock that’s highly defensive and reliable but also offers plenty of long-term growth potential.
First and foremost, the stock owns essential infrastructure assets, which ensures that much of its revenue and, consequently, its cash flow is highly robust. In addition, Brookfield’s portfolio of infrastructure assets is extremely well diversified, which also goes a long way in reducing the risk for investors.
For example, Brookfield owns assets in typical infrastructure industries, such as utilities, pipelines and transportation like ports and railroads. However, the dividend stock also owns infrastructure assets in higher growth industries in 2024, such as data centres and telecom towers.
On top of the diversification by industry, the stock is also diversified geographically with investments in assets all over the world.
This defensive portfolio on its own would be an impressive strategy and make Brookfield a stock worth buying. But in addition to all the defensive assets it owns, Brookfield also employs a growth strategy, where it consistently looks to sell off some of its more mature assets that it can fetch a premium for and invest that capital back into new opportunities that it believes it can buy undervalued.
Therefore, its combination of defence and growth makes Brookfield one of the top dividend stocks to buy in 2024.
Brookfield stock is trading roughly 20% off its 52-week high
In addition to the quality of Brookfield stock and the long-term potential that it offers, now is also an excellent time to consider taking a position in Brookfield while it trades roughly 20% off its 52-week high.
Plus, not only can you buy Brookfield while it trades off its highs, but at this price, Brookfield stock’s yield has now risen to more than 5.1%, which is significantly higher than its three- and five-year averages of 4.1% and 4.3%, respectively.
And because Brookfield is always looking to expand its operations and reinvest capital into new opportunities, it’s constantly increasing its funds from operations leading to consistent dividend growth. In fact, Brookfield aims to increase its distribution by 5% to 9% every single year.
So, if you’re looking to boost your income in 2024, Brookfield Infrastructure is certainly one of the top dividend stocks to consider adding to your portfolio today.
