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Generating passive income can help put you on the path to financial freedom. It can help offset some of your expenses, reducing the time you need to actively work to fund your lifestyle. The more passive income you can produce, the less dependent you will be on your career for income.
Buying dividend paying stocks is a great way to start making lasting money passive income. There are two great dividend stocks to buy for income right now Brookfield Renewable (NYSE: BEPC)(NYSE: BEP) i Enbridge (NYSE: ENB). them pay high yield dividends which should continue to grow in the coming decades.
Brookfield Renewable has paid a a lot reliable dividend in the past pair of decades The world leader renewable energies The producer has increased his payment at a compound annual rate of 6% since 2001. He increased his payment by at least 5% each year since 2011.
The company currently pays a dividend that exceeds 5.6%. This is several times higher than the S&P 500‘s dividend yield of 1.2%. At this rate, every $100 invested in Brookfield Renewable stock would produce $5.60 in annual dividend income each year. That compares to just about $1.20 in dividend income from a similar investment in an S&P 500 index fund.
Brookfield Renewable aims to increase its dividend at an annual rate of 5% to 9% over the long term. You should have enough power to achieve this goal. The company has several growth drivers, including inflation-linked rate increases, rising energy prices, development projects and acquisitions. These catalysts drive the company’s vision that it can raise its funds from operations (FFO) per share at an annual rate of more than 10% over the next decade.
Development projects are a greater growth engine of Brookfield Renewable. It currently has a whopping 200 gigawatts (GW) of projects under development, compared to its operational portfolio of 37 GW. And it has about 65 GW of projects in its late-stage pipeline that should finish in 2030. Development projects will boost its FFO per share by 4% to 6% annually over the next few years. With demand for renewable energy only expected to continue to grow, Brookfield should be able to continue expanding for decades to come.
Enbridge has been an extremely reliable dividend stock. The Canadian pipeline and utilities company has paid dividends to its investors for about 70 years and has increased its payout annually for the past 30 consecutive years. Currently its dividend exceeds 6%.
The company generates very stable cash flow to support its high dividend yield. Approximately 98% of their earnings come from fee-for-service agreements or long-term contracts. These deals give Enbridge a lot of visibility into its earnings. This is evident from the fact that it was on track to meet its 19th consecutive year of achieving its annual financial guidance by 2024.
