I'd Double My Position in These 3 Dividend Stocks Without Thinking Twice

I own lots of stocks, most of which pay dividends. I focus on dividends stocks because I like earning passive income. They've also historically delivered much higher returns compared to non-dividend payers.

Three of my favorite dividend stocks are Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP), Enterprise Products Partners (NYSE: EPD), and Realty Income (NYSE: O). I already have sizable positions in all three. However, I wouldn't think twice about doubling my positions. Here's why.

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Robust growth ahead

Brookfield Infrastructure has everything I look for in a core dividend holding. It generates very durable cash flows to support its high-yielding payout (currently 4.8%). About 85% of its earnings come from long-term, fixed-rate contracts or government-regulated revenue frameworks, which either indexes its revenue to inflation or protect it from inflation's impact.

The diversified global infrastructure operator also has a strong financial profile. It has a conservative dividend payout ratio (60% to 70% of its stable cash flows) and a strong, investment-grade balance sheet. That gives it significant financial flexibility to continue growing its operations and its dividend.

Brookfield Infrastructure also has solid growth prospects. It expects to grow its cash flow per share at a more than 10% annual rate going forward, driven by inflation-linked rate increases, expansion projects, and acquisitions. That should support dividend growth of 5% to 9% per year. Brookfield has increased its payout for 16 straight years, growing it at a 9% compound annual rate.

A big growth wave with more coming down the pipeline

Enterprise Products Partners is an exceptional income holding. The master limited partnership (MLP) -- it sends investors a Schedule K-1 Federal tax form -- currently yields 5.6%. The energy midstream company has increased its distribution for 27 consecutive years.

The MLP is in a strong position to continue growing its high-yielding payout. It has a fortress financial profile. Enterprise Products Partners generates very stable cash flow, primarily backed by long-term, fixed-rate contracts or government-regulated rate structures. The company generated enough cash to cover its distribution by 1.7 times last year, enabling it to retain lots of cash to reinvest in the partnership. It also has the strongest balance sheet in the energy midstream sector.

Enterprise Products Partners completed $6 billion of growth capital projects during the second half of last year, which will meaningfully boost its cash flow in 2026. Meanwhile, the company has another $4.8 billion in expansion projects under construction that should enter commercial service over the next two years, providing it with strong growth visibility.

The model of consistency

Realty Income is the epitome of an income stock in my book. The real estate investment trust (REIT) pays a high-yielding monthly dividend (5.3% current yield) that it routinely increases. It has raised its dividend 134 times since its public market listing in 1994, growing it at a 4.2% compound annual rate. The REIT has increased its payout for 31 consecutive years and 114 quarters in a row.

The company owns a diversified real estate portfolio secured by long-term, triple-net leases. That lease structure produces very stable cash flow because tenants cover all property operating costs. Meanwhile, the REIT has a conservative dividend payout ratio (75%) and a top-tier balance sheet, giving it lots of flexibility to invest in additional income-generating properties.

Realty Income expects to invest $8 billion in expanding its real estate portfolio this year. It should have no shortage of investment opportunities. It estimates there's a $14 trillion opportunity to invest in net-lease real estate across the U.S. and Europe.

Core income holdings

Brookfield Infrastructure, Enterprise Products Partners, and Realty Income have all the features I desire in a dividend stock. They pay well-supported, high-yielding dividends that should continue growing. That's why I wouldn't think twice about doubling my positions right now if I had the available cash.

Matt DiLallo has positions in Brookfield Infrastructure, Brookfield Infrastructure Partners, Enterprise Products Partners, and Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Brookfield Infrastructure Partners and Enterprise Products Partners. The Motley Fool has a disclosure policy.