Got $200? 3 Top High-Yield Dividend Stocks to Buy Right Now

Source The Motley Fool

The stock market has taken a little bit of a dip recently. The silver lining of sell-offs is that dividend yields rise when stock prices fall. Because of that, right now is a great time to lock in even higher yields on some top-notch dividend stocks.

Vici Properties (NYSE: VICI), Energy Transfer (NYSE: ET), and Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP) stand out as some of the top stocks to buy for income. They could turn a $200 investment into a pretty lucrative income stream:

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Dividend Stock

Investment

Current Yield

Annual Dividend Income

Brookfield Infrastructure

$66.67

5.02%

$3.35

Energy Transfer

$66.67

7.15%

$4.77

Vici Properties

$66.67

5.47%

$3.65

Total

$200.00

5.88%

$11.76

Data source: Google Finance.

For comparison, investing $200 into an S&P 500 index fund would only yield about $2.70 of annual dividend income, given its much lower yield (1.35%).

Here's a look at what makes these three stocks such great options for income-seeking investors right now.

A great income experience

Vici Properties is a real estate investment trust (REIT) focused on investing in experiential real estate, such as market-leading casino, hospitality, wellness, entertainment, and leisure destinations. It leases these properties to operating companies under long-term triple net agreements (NNN). Those net leases provide it with very stable and growing rental income. Tenants cover all of a property's operating costs, including routine maintenance, real estate taxes, and building insurance. Meanwhile, the leases increasingly link rental rates with inflation (42% this year, rising to 90% by 2035).

The REIT's stable and growing rental income enables it to pay a high-yielding dividend (currently 5.5% after a 7.5% slide in the price from its recent peak). Vici Properties has increased its payout for seven straight years (every year since its formation). It has grown the dividend at a 7% compound annual rate, which is well above the 2% pace of its triple net lease peers.

Vici Properties' other dividend growth driver is its steadily expanding portfolio. The REIT routinely invests in new experiential real estate by acquiring properties and funding development projects.

A high-octane income stream

Energy Transfer is a master limited partnership (MLP) focused on owning energy midstream assets like pipelines, processing plants, storage terminals, and export facilities. These assets produce very stable cash flow backed by long-term contracts and government-regulated rate structures. That gives it the cash to pay a lucrative distribution that now yields 7.2% after a nearly 14% slump from its recent peak.

The MLP (which sends its investors a Schedule K-1 Federal Tax Form each year) aims to increase its high-yielding payout by 3% to 5% per year. It can easily afford to do so. Energy Transfer grew its distributable cash flow by 10% last year to $8.4 billion, which covered its payout with $4 billion to spare. It used that excess free cash flow to invest in expanding its operations and maintaining its strong financial profile.

Energy Transfer currently expects to invest $5 billion into expansion projects this year, which should fuel accelerating growth as those projects come online. That should enable it to continue increasing its big-time payout.

Income and growth on sale

Shares of Brookfield Infrastructure have tumbled nearly 25% during the recent stock market sell-off. That decline has pushed the global infrastructure operator's dividend yield up over 5%. That high-yielding payout is on a very firm foundation.

Brookfield Infrastructure generates durable cash flow. About 85% of its funds from operations (FFO) come from regulated or contracted assets. Most of those financial frameworks lock in its cash flow (75% has no volume or price exposure). Meanwhile, its agreements link about 70% of its FFO to inflation, which provides it with steadily rising income.

The company pays out 60% to 70% of its stable cash flow in dividends. Brookfield retains the rest to help fund expansion projects. It currently has $8 billion of projects under construction, primarily related to data infrastructure (data centers and semiconductor manufacturing plants). The company's growth drivers should power double-digit annual FFO-per-share growth over the long term. That should support about 5% to 9% annual dividend growth. Brookfield has increased its payout for 15 straight years (every year since its formation), growing it at a 9% compound annual rate.

A great time to boost your income

The recent stock market sell-off is driving up dividend yields. Because of that, now's a great time for those with a couple hundred dollars to spare to go shopping. Brookfield Infrastructure, Energy Transfer, and Vici Properties are great options. They pay high-yielding and steadily rising dividends, which could give your income a big boost.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

  • Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $299,728!*
  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $39,754!*
  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $480,061!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Continue »

*Stock Advisor returns as of March 14, 2025

Matt DiLallo has positions in Brookfield Infrastructure, Brookfield Infrastructure Partners, Energy Transfer, and Vici Properties. The Motley Fool recommends Brookfield Infrastructure Partners and Vici Properties. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Elon Musk’s D.O.G.E fails to stop US federal spending from hitting all-time highsUS federal spending just hit a record $603 billion in February, in spite of Elon Musk’s Department of Government Efficiency (D.O.G.E) tearing through government agencies with mass firings and budget cuts. Treasury data released Wednesday confirms that spending still jumped by $40 billion compared to last year, a 7% increase, exposing how difficult it is […]
Author  Cryptopolitan
Mar 13, Thu
US federal spending just hit a record $603 billion in February, in spite of Elon Musk’s Department of Government Efficiency (D.O.G.E) tearing through government agencies with mass firings and budget cuts. Treasury data released Wednesday confirms that spending still jumped by $40 billion compared to last year, a 7% increase, exposing how difficult it is […]
placeholder
Ethereum Price Forecast: Staking could be catalyst to drive ETH's price 'more than Pectra upgrade': K33 ResearchEthereum (ETH) traded around $1,860 in the Asian session on Thursday as its price remained largely subdued by bearish sentiment weighing on the general crypto market.
Author  FXStreet
Mar 13, Thu
Ethereum (ETH) traded around $1,860 in the Asian session on Thursday as its price remained largely subdued by bearish sentiment weighing on the general crypto market.
placeholder
XRP fails to surpass a key resistance level as Ripple secures first Dubai license Ripple revealed that it has received licensing from Dubai's Financial Services Authority.
Author  FXStreet
Yesterday 01: 47
Ripple revealed that it has received licensing from Dubai's Financial Services Authority.
placeholder
XRP Price Builds Base—Short-Term Rally May Be BrewingXRP price started a fresh recovery wave above the $2.120 zone. The price is now consolidating and might clear the $2.350 resistance zone. XRP price started a fresh recovery wave above the $2.120
Author  NewsBTC
Yesterday 05: 55
XRP price started a fresh recovery wave above the $2.120 zone. The price is now consolidating and might clear the $2.350 resistance zone. XRP price started a fresh recovery wave above the $2.120
placeholder
Gold rallies to a new all-time high in its sprint toward $3,000Gold’s price (XAU/USD) hits a fresh all-time high above the $2,990 level at the time of writing on Friday, registering a weekly gain of over 2.5% for now.
Author  FXStreet
Yesterday 09: 55
Gold’s price (XAU/USD) hits a fresh all-time high above the $2,990 level at the time of writing on Friday, registering a weekly gain of over 2.5% for now.
goTop
quote