2 stocks of hot dividends to double at the moment

Recent volatility in the S&P 500 Forced me to reshape one of my main investment beliefs: dividend shares are not only for income investors.

Whatever the investment strategy you follow, you cannot be mistaken by having paid dividend actions that can bring you a constant income flow even during volatile periods. Over time, actions that pay regular dividends and coherently increase their payments which are also often proven to be multibaggeists. Here are two dividend actions of this type that you would like to double now.

Win more than 9% of annualized yields with this stock of dividends

Brookfield Infrastructure (BIPC -1.83%)) (Beep -2.21%)) has units of its partnership and listed corporate actions on the New York Stock Exchange. Although the two represent the same company, investors who wish to avoid tax complications, such as the filing of federal forms K-1, should buy the actions of the company.

The question, however, is the reason why you should even buy Brookfield infrastructure actions. If I had to express this in a single line, I would say that the base of assets, the corporate model and the growth of the Brookfield dividends make it one of the most convincing dividend actions to have. The actions of the company reporting 4.7% (partnership units report 5.7%) and drop almost 15% in six months when writing this article, you would even like to double on this stock of dividends at the moment.

Brookfield Infrastructure has and operates important and regulated assets such as public services, natural gas pipelines, rail and toll roads, data centers and wired with fiber optic. Consequently, 85% of its available cash flows are regulated or contracted, which means that species continue to flow even if the economy slows down. The company also sells assets when they ripen to reinvest the product to potentially higher assets, and the cycle is repeated.

BIP data by ycharts.

This business model has helped Brookfield infrastructure increase jumps and limits, with its operations funds (FFO) per unit increasing at an annual rate composed of 15% and dividend (or distribution) per unit of 9% since 2009. The graph above shows how the stock has been raised since, with and without reinvested dividends. The actions of Brookfield Infrastructure Corporation were listed in 2021 and have doubled investors’ money since then with reinvested dividends.

In the long term, Brookfield infrastructure targets more than 10% FFO per unit growth and 5% to 9% of annual dividends growth. Add the yield of dividends, which means potential annualized yields of at least 9%. It is a solid investment for an income investor.

This stock of 6.3% in the field could bring you even greater dividends

Corporate products (EPD 0.46%)) has already proven his courage as a stock of dividends. It has increased its dividend for more than 25 consecutive years now, and this growth in dividends has added enormously to stock yields. Over the past five years only, business products have gained more than 250% yields with reinvested dividends. But there is a reason why I am particularly optimistic about this stock of dividends now.

EPD data by Ycharts.

Enterprise Products is an intermediate energy company with a network of massive pipelines which transports natural gas, crude oil, natural gas liquids, petrochemical products and refined products. He has spent billions of dollars expanding in recent years and approaches most of his projects. To put figures there, $ 6 billion out of the $ 7.6 billion in major projects under construction are expected to enter this year. The projects include several gas treatment plants in the Permian basin and a pipeline of natural gas liquids currently under expansion.

I expect these projects to begin to contribute to the cash flow of corporate products later this year. Meanwhile, company growth capital expenses are expected to get rid of $ 4 billion to $ 4.5 billion in 2025 to $ 2 billion to $ 2.5 billion in 2026, corporate products should have more liquidity available for distribution to its shareholders in the form of dividends and share buybacks. The stock also giving 6.3%is the right time to double on this stock of dividend growth.

Neha Chamaria has no position in the actions mentioned. The Motley Fool recommends Brookfield Infrastructure Partners and Enterprise Products Partners. The Motley Fool has a policy of disclosure.