3 Top Dividend Stocks I Can’t Wait to Buy in 2023

I received my first dividend payment when I was still in graduate school. I’ve been obsessed with collecting dividends ever since. That set me on a journey to grow my dividend income with the ultimate goal of eventually living off this revenue source.

I still have a ways to go. That’s why I buy dividend stocks as often as I can. Three that I can’t wait to purchase in the new year are Brookfield Infrastructure Partners (BIP -0.96%), Brookfield Renewables (BEP -0.51%) (BEPC -0.97%)and Enbridge (ENB -0.43%).

An incredible bargain right now

Units of Brookfield Infrastructure Partners got crushed in 2022. They lost about a quarter of their value and recently traded at a 52-week low. That’s a much steeper decline than the economically equivalent shares of Brookfield Infrastructure Corporation (BEPC -0.97%). Because of that, Brookfield Infrastructure Partners looks like an incredible buying opportunity right now since it trades at a dirt-cheap valuation (about 11 times funds from operations or FFO) and an attractive dividend yield (recently 4.7%).

That’s a fantastic value proposition for a company with Brookfield Infrastructure’s growth profile. Thanks to elevated inflation rates, upcoming development project completions, and recent acquisitions, Brookfield Infrastructure is on track to grow its FFO per unit by 12% to 15% in 2023. Meanwhile, inflation, volume expansion as the economy grows, and capital projects have Brookfield is on track to organically grow its FFO at or above the upper end of its long-term target range of 6% to 9% per unit for the next few years. That easily supports Brookfield’s plan to grow its high-yielding payout at an annual rate of 5% to 9%. The company has an unbroken streak of 13 straight years of increasing its distribution.

While Brookfield Renewable is already one of my top passive income producers, I plan to add to my sizable position in 2023. Its combination of income and upside is too good to pass up right now.

Powerful growth ahead

Brookfield Infrastructure’s renewable energy sibling, Brookfield Renewable, offers an equally enticing passive income stream. With units plunging more than 35% in 2022, it yields an enticing 4.6%. That big-time yield is one of the many factors making it look like a smart buy in 2023.

The company has a quartet of growth drivers — inflation, higher power prices, development projects, and mergers and acquisitions — that should power 10%+ annual growth in its FFO per share through 2027. Brookfield Renewable has already secured and funded a floor of 8% annual FFO growth. Meanwhile, it has an extensive development pipeline, an excellent acquisition track record, and a top-tier balance sheet. Those factors could give it the fuel to grow by as much as 20% per year.

This outlook easily supports Brookfield Renewable’s plan to grow its dividend by 5% to 9% per year. That would continue its streak. The company has increased its payout by at least 5% annually for the last 11 consecutive years. This combination of income and growth at a lower price is compelling, which is why I plan to add to my position early in the new year.

The fuel to continue growing its big-time payout

Energy infrastructure giant Enbridge currently offers a big-time dividend that yields 6.8%. That monster dividend is on one of the most sustainable foundations in the energy sector.

Enbridge’s diversified business of pipeline and utility assets generates steady cash flow. Meanwhile, it pays out a reasonable amount (65% via the dividend), enabling it to retain billions of dollars each year to expand its energy infrastructure business. Enbridge also has a top-notch balance sheet.

The company currently has a multibillion-dollar backlog of projects under construction, including new natural gas pipelines, export capacity, and renewable energy facilities. These projects should grow its cash flow per share by 5% to 7% annually through at least 2024. That should support continued dividend growth. Enbridge recently gave investors another raise, marking its 28th straight year of growing the dividend. With plenty of fuel to continue growing, I can’t wait to increase my exposure to Enbridge’s big-time dividend.

Energizing my passive income

Brookfield Renewable, Brookfield Infrastructure, and Enbridge have everything I look for in a dividend stock investment. They pay above-average dividends on sustainable footings that should continue to grow in the coming years. Because of that, they’ll provide me with steadily rising passive income streams that should help me reach my goal sooner. That’s why I can’t wait to boost my positions in these dividend stocks in the new year.

Matthew DiLallo has positions in Brookfield Infrastructure Partners, Brookfield Renewable, Brookfield Renewable Partners, and Enbridge. The Motley Fool has positions in and recommends Brookfield Renewable and Enbridge. The Motley Fool recommends Brookfield Infrastructure Partners and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

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