I have an infatuation with generating passive income to cover my basic living expenses, enabling me to reach financial independence.
While I like all my passive income investments, I have a particular affinity toward a few of them because they steadily provide me with more income. Topping that list are Brookfield Infrastructure(NYSE: BIPC)(NYSE: BIP), Enterprise Products Partners (NYSE: EPD), and Realty Income (NYSE: O). Here’s why I love buying these
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Boring is beautiful
Brookfield Infrastructure owns a globally diversified portfolio of infrastructure businesses. Its operations include pipelines, toll roads, electricity transmission lines, and data centers. I know they might seem like boring businesses, but nothing about the stable cash flows they generate is boring. The company produced $2.6 billion in cash flow last year, about three-quarters of which it paid out in dividends. The company’s current dividend yield of 3.6% is roughly three times higher than the S&P 500‘s yield (1.1%).
The infrastructure company recently increased its dividend by another 6%, marking its 17th straight year of dividend hikes. That income growth should continue.
Brookfield is investing heavily to expand its infrastructure portfolio, including building several data centers worldwide and two U.S. semiconductor foundries. It also routinely recycles capital by selling mature assets to fund new investments. Last year, Brookfield secured $1.5 billion of new investments, including a leading U.S. refined products pipeline system, a bulk fiber network, and a North American railcar network. The company expects its investments will drive <a >
