Want Decades of Passive Income? 2 High-Yield Dividend Stocks to Buy Now and Hold Forever

Key Points

• The best dividend stocks can reward you with generous cash payouts for years.

• Energy and infrastructure are well-stocked ponds from which to fish for dividends.

• Two strong players to consider are Energy Transfer and Brookfield Infrastructure.

• 10 stocks we like better than Brookfield Infrastructure ›

Forever is a long time. But while they may fall a bit short of eternity, elite dividend stocks can deliver bountiful cash payments straight into your diversified investment portfolio quarter after quarter and year after year for the rest of your life.

To aid your search for these purveyors of passive income, here are two excellent high-yield stocks for your consideration.

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Dividend stock to buy No. 1: Energy Transfer

The artificial intelligence (AI) megatrend is fueling a surge in power generation. "Global electricity demand from data centers is set to more than double over the next five years, consuming as much electricity by 2030 as the whole of Japan does today," Fatih Birol, executive director of the International Energy Agency, said in a report in April.

Energy Transfer (NYSE: ET) is helping to satisfy the world's hunger for electricity by delivering the vital power sources needed to supply it. Its roughly 140,000 miles of pipelines move natural gas, crude oil, and refined products across the U.S. The infrastructure titan's diverse collection of storage sites, treatment facilities, and export terminals also helps to deliver fuels to over 80 other countries.

Europe has emerged as a key market for liquified natural gas (LNG). The war in Ukraine has driven European governments to break their dependence on Russian natural gas and seek reliable alternatives from U.S. suppliers. Energy Transfer is building an LNG export facility in Louisiana to help meet the growing need for this increasingly crucial fuel source.

At the same time, tariffs are expected to drive previously outsourced manufacturing back to the U.S. Energy Transfer's domestic energy supply network stands to be a prime beneficiary of this onshoring trend.

As a master limited partnership (MLP), Energy Transfer is built to reward its investors with hefty cash payouts. This passive income creator is currently offering you a bountiful 7.5% yield. With the AI, onshoring, and LNG export trends fueling its growth, Energy Transfer intends to increase its already sizable cash distribution by 3% to 5% annually.

Dividend stock to buy No. 2: Brookfield Infrastructure

If you'd like to earn passive income from a wider selection of cash-generating assets, consider Brookfield Infrastructure (NYSE: BIP) (NYSE: BIPC). Like Energy Transfer, Brookfield helps to move natural gas and other fuels around the world. However, the investment giant also transports people, freight, and -- increasingly -- data for AI applications.

Brookfield divides its operations into four core segments: utilities, transport, midstream, and data. Think electricity transmission lines, railroads, pipelines, and AI-powered data centers.

These enduring assets produce dependable cash flows that are often protected by high barriers to entry, such as strict regulations and steep replacement costs. Brookfield passes much of its profits on to investors via a rising stream of cash distributions, which management expects to grow by 5% to 9% annually.

Brookfield's battle-tested investment approach generates high returns on capital. Its experienced management team focuses on projects with attractive, long-term growth prospects. Brookfield also has a proven ability to recycle its capital by selling developed properties and reallocating the cash into higher-potential projects. Together, these lucrative strategies have enabled the infrastructure leader to grow its funds from operations (FFO) by 14% annually since 2009.

Looking ahead, Brookfield stands to benefit from several powerful trends. The AI boom, onshoring, and the never-ending search for cleaner energy sources should all further its expansion. Additionally, lower interest rates -- a key goal of the Trump administration -- could help reduce Brookfield's financing costs and boost its profits.

Should you invest $1,000 in Brookfield Infrastructure right now?

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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.