Dividend Stocks to Buy Amid Fed Rate Cuts

With the Federal Reserve cutting interest rates, investors are encouraged to consider dividend stocks that promise substantial returns. This report highlights three high-yield stocks, Energy Transfer, Clearway Energy, and Brookfield Infrastructure, ideal for long-term holding.

Date: 22-09-2024

AI Rating: 7

The report discusses three high-yield dividend stocks that investors can consider in the current market, particularly in light of the Federal Reserve reducing interest rates.

Energy Transfer (NYSE: ET): This company offers a dividend yield of 7.9% and aims to pay out over 50% of its distributable cash flows (DCF) in dividends. The company has a stable income source due to its fee-based contracts, and with its recent acquisition of WTG Midstream Holdings for $3.3 billion, it anticipates increasing its annual dividend per share by 3% to 5%. This growth outlook is positive for investors.
Clearway Energy (NYSE: CWEN, CWEN.A): Clearway Energy shows a commitment to returning capital to shareholders with a target of increasing its annual dividend per share by 5%-8% through 2026. After facing challenges in 2019 due to a major customer’s bankruptcy, it regained investor trust by raising its dividend in 2020 and has continued to do so every year since. This positive trajectory indicates recovery and future growth prospects.
Brookfield Infrastructure (NYSE: BIPC, BIP): Brookfield has a reputation for consistent dividend growth with a yield of 4.8%. The company’s business model ensures that 90% of its cash flows are contracted, indicating stability. Moreover, it has a solid track record of growing its funds from operations and dividends by CAGR of 15% and 9%, respectively, and projects further dividend growth of 5%-9% in the long term.

None of the analysis mentioned specific values for Earnings Per Share (EPS), Revenue Growth, Net Income, or Profit Margins, and therefore, those metrics cannot be analyzed based on the provided content.

Stocks: ET CWEN CWEN.A BIPC BIP