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Worried About the Stock Market's Recent Turbulence? 3 Safe High-Yield Dividend Stocks to Buy Right Now for a Secure Income Stream.
BIPBrookfield Infrastructure Partners(BIP) The Motley Fool·2025-03-16 10:23

Market Overview - The stock market has experienced volatility at the start of the year, with the Nasdaq Composite down 8% year to date [1] Company Resilience - Companies like Enterprise Products Partners, Enbridge, and Brookfield Infrastructure are highlighted for their ability to maintain safe and secure dividends during market uncertainty [2] Enterprise Products Partners - Enterprise Products Partners operates in the midstream energy sector, focusing on pipelines and energy infrastructure, which allows it to charge fees independent of energy prices [3][4] - The company has a 26-year history of increasing annual distributions, showcasing its stability despite market volatility [5] - Enterprise has an investment-grade balance sheet, with a distribution coverage ratio of 1.7x from its distributable cash flow, indicating conservative financial management [6][7] Enbridge - Enbridge has paid dividends for over 70 years, increasing its payout for the last 30 years, demonstrating resilience in the energy sector [8] - Approximately 98% of Enbridge's income comes from stable, contracted assets, providing predictability in earnings [9] - The company maintains a conservative dividend payout ratio of 60% to 70%, allowing for significant cash retention for expansion projects [10] - Enbridge has a multibillion-dollar backlog of secured capital projects expected to grow cash flow per share by around 3% annually through next year and 5% post-2026 [11] Brookfield Infrastructure - Brookfield Infrastructure operates resilient, contract-based businesses, including utilities and energy pipelines, distinguishing it from typical infrastructure stocks [12] - The company has paid dividends every year since its formation in 2008, with a compound annual growth rate (CAGR) of 9% in dividend per share from 2009 to 2025 [13][14] - Brookfield Infrastructure targets 5% to 9% annual dividend growth over the long term, supported by predictable cash flows and a strategy of reinvesting proceeds from asset sales [15]