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3 Dividend Growers to Buy for Passive Income

Everybody loves dividends, as they provide a passive income stream, limit drawdowns in other positions, and provide more than one way to profit from an investment.

And when considering dividend-paying stocks, those with a history of boosting their payout are prime considerations, reflecting their commitment to increasingly rewarding shareholders.

In addition, consistent dividend hikes reflect the company’s successful nature, opting to share profits with shareholders.

And recently, three companies – NRG Energy (NRG - Free Report) , PACCAR (PCAR - Free Report) , and Enterprise Products Partners (EPD - Free Report) – have announced payout increases. Let’s take a closer look at each.

NRG Keeps Paying Investors

NRG is a leading energy and home services company that delivers innovative solutions that help people, organizations, and businesses achieve their goals while also advocating for competitive energy markets and customer choice.

The company recently announced an 8% boost to its payout, bringing the quarterly total to $0.44 per share. It has a strong history of increasingly rewarding shareholders, delivering five payout increases over the last five years, translating to a 7.6% five-year annualized dividend growth rate.

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Shares currently yield 1.5% annually, a few hairs above the S&P 500’s 1.2% annual yield.

PCAR Sports Bullish Outlook

PACCAR is a leading manufacturer of heavy-duty trucks worldwide, with substantial manufacturing exposure to light/medium trucks. The company recently announced a 10% boost to its payout, bringing the quarterly total to $0.33/share.

Like NRG above, PACCAR has consistently increasingly rewarded its shareholders over the years, sporting an 8.2% five-year annualized dividend growth rate. The payout ratio also remains at a sustainable 13% of the company’s earnings.

The stock sports a favorable Zacks Rank #2 (Buy), with EPS expectations creeping higher across the board over recent months.

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Image Source: Zacks Investment Research

EPD Shares Pay Steep Yield

Enterprise Products Partners is a leading midstream energy player in North America that provides services to producers and consumers of commodities that include natural gas, natural gas liquids, oil, and refined petrochemical products.

The company recently unveiled a 2% increase to its payout, bringing the quarterly total to $0.53 per share. It’s a high-yield stock, with shares currently yielding 6.2% annually vs. the S&P 500’s 1.2% yield.

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Image Source: Zacks Investment Research

Bottom Line

Targeting dividend-paying stocks is an excellent strategy that investors can deploy.

Dividends soften the blow from drawdowns in other positions, provide more than one way to reap a return from an investment, and allow maximum returns through dividend reinvestment.

And all three companies above – NRG Energy (NRG - Free Report) , PACCAR (PCAR - Free Report) , and Enterprise Products Partners (EPD - Free Report) – have recently boosted their payouts.


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NRG Energy, Inc. (NRG) - free report >>

Enterprise Products Partners L.P. (EPD) - free report >>

PACCAR Inc. (PCAR) - free report >>

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