Getting a Tax Refund? 3 High-Yield Stocks to Buy With Your Refund Check.

Core Viewpoint - The article discusses the potential of investing tax refunds in high-yield dividend stocks, highlighting three standout picks: Enterprise Products Partners, Clearway Energy, and Brookfield Infrastructure [2]. Group 1: Enterprise Products Partners - Enterprise Products Partners operates in the midstream segment of the energy sector, which is less volatile compared to upstream and downstream segments, focusing on energy demand rather than commodity prices [3]. - The company has a strong track record with 26 consecutive annual distribution increases, supported by an investment-grade-rated balance sheet and a payout ratio of 55% against adjusted cash flow from operations [4]. - Future growth in distributions is expected to be modest, primarily driven by fee increases and capital investments, with growth likely in the low- to mid-single-digit percentage range [5]. Group 2: Clearway Energy - Clearway Energy owns a significant clean power generation portfolio, generating stable cash flows through long-term, fixed-rate power purchase agreements, with a current dividend yield of 6.5% [6]. - The management aims to grow the dividend by approximately 6.8% this year and 6.5% in 2026, supported by a pipeline of investment opportunities in renewable energy [7][8]. - Clearway has visibility into growth beyond 2027, with new investments and agreements expected to drive dividend growth within a target range of 5% to 8% annually [8][9]. Group 3: Brookfield Infrastructure - Brookfield Infrastructure has consistently increased its dividend since 2008, achieving a compound annual growth rate of 9%, with current yields of 5% for limited partnership shares and 4% for corporate shares [10]. - The company invests in stable cash flow-generating assets such as utilities and gas pipelines, which allows for reliable dividend payments [11]. - Brookfield Infrastructure has grown its funds from operations (FFO) by 8% and plans to sell assets worth $5 billion to$6 billion, aiming for a 10% growth in FFO per unit and at least a 5% annual dividend increase [12][13].