Consider These 2 Picks For Retirement Income

Core Investment Strategy - Many investors focus on both attractive yield and growth in income and portfolio appreciation, especially those not yet in retirement or in early retirement years [1] - The Schwab US Dividend Equity ETF (SCHD) tracks 103 blue-chip companies with a 3-year dividend growth rate of 8% and a current yield of approximately 3.4% [1] - Current macro and interest rate environments make high-yield defensive businesses more attractive, complicating the rationale for investing in dividend growth strategies like SCHD [1] Investment Pick 1: Enbridge (ENB) - Enbridge operates in the midstream space, with 98% of its EBITDA from cost of service contracts, providing price stability and insulation from commodity cycle risks [2] - ENB offers a dividend yield of approximately 6.6%, which is 320 basis points higher than SCHD's yield [2] - The company has a CapEx pipeline of around $21 billion, representing nearly 25% of its market cap, and aims for annual EBITDA growth of 7% to 9% through 2026 [2] - ENB's credit rating was upgraded to A low by DBRS, and S&P removed the negative outlook from its BBB+ rating, indicating a solid balance sheet [2] Investment Pick 2: Brookfield Infrastructure Partners (BIP) - BIP focuses on infrastructure investments with a risk-averse buy and hold strategy, generating around 70% of its FFO from the Americas [3] - The company targets annual distribution growth of 5-9%, with nearly 80% of its FFO linked to CPI escalators [3] - In Q2 2024, BIP achieved a 10% year-over-year increase in FFO and identified a CapEx agenda of approximately $7.7 billion [3] - BIP has a strong investment-grade credit rating and no corporate debt maturities until 2027, reducing refinancing risk [3] Conclusion - Selecting individual businesses like Enbridge and Brookfield Infrastructure Partners can provide retirement investors with higher yields and a clear growth trajectory compared to traditional blue-chip dividend growth strategies [4]