Top Dividend Stocks Poised for Growth Amid Strong Earnings

Top Dividend Stocks Show Promising Growth Prospects. Companies like Brookfield Infrastructure, NextEra Energy, and Oneok are increasing dividends, boasting strong earnings, and have solid growth prospects, making them attractive investments this month.

Date: 08-02-2025

AI Rating: 8

Brookfield Infrastructure recently raised its dividend by 6%, marking the 16th consecutive year of increases, which positions its yield above the S&P 500. The company anticipates significant earnings contributions from ongoing projects, particularly in expanding data infrastructure, and projects overall growth due to its robust development pipeline. This consistent growth in dividends and a targeted funds from operations (FFO) growth rate exceeding 10% annually indicates a strong financial position.

NextEra Energy has also demonstrated robust dividend growth, with a 10% compound annual rate increase over the past two decades. With an 8.9% average adjusted earnings-per-share growth rate compared to peers, the company aims to increase its dividend by around 10% annually, backed by extensive renewable energy project investments. This commitment to sustainable growth supports optimism for future returns.

Oneok has delivered reliable dividend growth and stability for over 25 years and plans to increase its dividend by 3% to 4% annually. The acquisition of Magellan Midstream Partners is expected to significantly enhance its free cash flow per share. Coupled with a growing backlog of organic projects, Oneok's expansion plans should further bolster its dividend growth potential.

Each of these companies has initiated or plans to initiate new projects that can positively impact their business models, possibly leading to increased stock prices driven by higher dividends and strong earnings growth.

Stocks: BIPC BIP NEE OKE