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2 Unstoppable Dividend Stocks Yielding More Than 4% That Income-Seeking Investors Will Want to Buy in October and Hold Forever
The Motley Foolยท2025-10-01 07:43

Core Insights - Income-seeking investors can find reliable dividend payers without sacrificing yield for quality, with some companies offering yields above 4% while the average in the S&P 500 is only 1.2% [1] Realty Income - Realty Income is a well-established REIT with 15,606 properties leased to 1,630 clients, known for its consistent dividend payouts [3] - The company has raised its monthly dividend for 111 consecutive quarters, totaling 131 increases since its IPO in 1994, currently offering a yield of 5.4% [4] - Despite challenges from rising interest rates, Realty Income has maintained a 3.54% annual dividend growth over the past five years [4] - The recent Federal Reserve interest rate cut of 0.25% is expected to enhance Realty Income's profits and dividend growth potential [5] - The company maintains a high occupancy rate of 98.6% by focusing on retail categories that drive foot traffic, such as convenience stores and grocery stores [5] - Realty Income's largest tenant, 7-Eleven, contributes only 3.4% to its annualized rental revenue, showcasing its diversification [6] - The REIT's strong credit rating (A3 from Moody's) allows it to borrow at favorable rates, such as $800 million at an average yield of 4.41% [7] Brookfield Infrastructure Corp - Brookfield Infrastructure has consistently increased its dividend payouts since its market debut 16 years ago, with an annual increase of 9% and a current yield of 4.2% [8] - The company's revenue is diversified, with 48% coming from transportation assets and the remainder from utilities, pipelines, and data centers, providing resilience against economic downturns [9] - As a subsidiary of Brookfield Corporation, Brookfield Infrastructure has access to significant resources, enabling it to acquire distressed assets [10] - In Q2, the company invested $1.3 billion in various infrastructure projects and raised $2.4 billion by trimming its asset portfolio [11] - Management anticipates a 5% to 9% annual increase in dividend payouts in the coming years, making it an attractive option for long-term investors [12]