3 Top Dividend Stocks I Wouldn't Hesitate to Buy With $1,000 Right Now

Core Insights - Investing in dividend stocks is generally a wise decision, particularly in companies that consistently increase their dividends, as they have historically outperformed non-dividend stocks by more than two-to-one over the long term [1] Group 1: Brookfield Infrastructure - Brookfield Infrastructure has increased its dividend for 16 consecutive years, with a compound annual growth rate of 9%, currently yielding 4.2% [4][6] - Approximately 85% of Brookfield's funds from operations (FFO) are derived from long-term contracts or government-regulated rate structures, with 60% to 70% of stable cash flow paid out as dividends [5] - The company anticipates FFO per share growth of 6% to 9% annually, with acquisitions expected to drive growth exceeding 10% annually, supporting dividend increases of 5% to 9% per year [6] Group 2: PepsiCo - PepsiCo has increased its dividend for 53 consecutive years, qualifying as a Dividend King, with a compound annual growth rate of 7.5% over the past 15 years, currently yielding 4% [7] - The company aims for organic revenue growth of 4% to 6% per year and core earnings-per-share growth in the high single digits, supported by investments in product innovation and capacity expansions [8] - PepsiCo is transitioning its portfolio to healthier options through strategic acquisitions, which should facilitate continued dividend increases [9] Group 3: VICI Properties - VICI Properties has delivered eight consecutive annual dividend increases, with a compound annual growth rate of 6.6%, currently yielding 5.7% [10] - The REIT's long-term triple net leases provide stable rental income, with an increasing percentage of leases linked to inflation, expected to rise from 42% this year to 90% by 2035 [11] - By paying out about 75% of stable cash flow in dividends, VICI retains capital for further investments, including significant funding for new developments, which should support ongoing dividend growth [12] Group 4: Investment Recommendation - Brookfield Infrastructure, PepsiCo, and VICI Properties exhibit resilient cash flows and ongoing expansion initiatives, making them strong candidates for reliable and steadily growing dividends [13]