Pursue Long-Term Wealth with Passivity: Invest in These Two Stocks Immediately.
Generating passive income is a great way to secure your financial independence and reduce reliance on your career for income. Investing in dividend-paying stocks is an excellent method to start earning this type of income. Two solid options at the moment are Brookfield Renewable and Enbridge, both boasting high-yielding dividends with potential for long-term growth.
Brookfield Renewable: A Leader in Renewable Energy
Brookfield Renewable has an impressive track record of paying dependable dividends for the past couple of decades. Since 2001, it’s grown its payout at a 6% compound annual rate and has increased the amount yearly since 2011. With a currently yielding dividend higher than 5.6%, it provides more than twice the income of an equivalent investment in the S&P 500.
Brookfield plans to increase its dividend by 5% to 9% annually over the long term, backed by various growth catalysts. These include inflation-linked rate increases, rising power prices, development projects, and acquisitions. Its massive 200GW of projects under development and 65GW in the pipeline give the company an ample opportunity to continue growing for decades to come.
Enbridge: An Income-Generating Powerhouse
Enbridge has a strong reputation as a reliable dividend stock, consistently paying for 70 years and increasing its dividend annually for the past 30. Its actual earnings come from cost-of-service agreements or long-term contracts, allowing it to plan ahead and meet its annual financial goals efficiently. These agreements and its substantial secured capital projects, totaling CA$27 billion, ensure a stable foundation for future growth.
Durability: A Common Thread
Brookfield Renewable and Enbridge have demonstrated their ability to raise dividends consistently over the years. Their solid financial health and growth prospects make them excellent options for investors seeking a durable passive income stream.
Enrichment Insights:
- Brookfield Renewable: This international company operates in various renewable energy sources, including hydroelectric, wind, solar, and distributed energy, covering five continents. With a diversified portfolio, it’s well-positioned to capitalize on the rapidly growing global demand for renewable energy.
- Enbridge: This Canadian company operates in several sectors, including pipelines, renewable energy, and utilities. Its strong foundation in multiple fields allows it to continue growing, even in varying market conditions.
Investing in Brookfield Renewable or Enbridge is a wise decision for those seeking to diversify their finance portfolio and earn passive income. With their consistent dividend payments and promising growth prospects, these companies offer a reliable source of money over the long term, making them attractive options for investors aiming to reduce their reliance on traditional employment for income.
