3 Safe Ultra-High-Yield Dividend Stocks to Buy and Hold for a Lifetime of Passive Income

Higher-yielding dividend stocks often have a higher risk of a future payment reduction. Because many of these companies either have weak financial profiles or growth prospects, investors need to tread carefully when buying stocks with a higher yield if they're seeking a bankable income stream.

Brookfield Renewable (NYSE: BEPC)(NYSE: BEP), MPLX (NYSE: MPLX), and NNN REIT (NYSE: NNN) stand out among higher-yielding dividend stocks. They back their big-time payouts with rock-solid financial profiles and have solid growth prospects, making them safer options for those seeking durable passive income streams that could last their lifetimes.

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A powerful dividend stock

Brookfield Renewable currently has a dividend yield of more than 5%. That's several times higher than the S&P 500's sub-1.5% dividend yield. The global renewable energy producer's big-time payout is on a very sustainable foundation.

The company generates very stable cash flow to support that high-yielding payout. Brookfield sells about 90% of the electricity it produces under long-term, fixed-rate power purchase agreements with utilities and large corporate customers, the bulk of which link rates to inflation. This accounts for 70% of its revenue.

Brookfield expects a combination of rising power rates, development projects, and acquisitions to power more than 10% annual growth in its funds from operations (FFO) per share in the coming years. That will provide it with plenty of fuel to support its plan to increase its dividend by 5% to 9% per year. The company has grown its payout at a 6% compound annual rate since 2001.

A fully fueled growth engine

MPLX currently has a yield of more than 7.5%. The master limited partnership (MLP), which sends investors a Schedule K-1 Federal Tax Form each year, has increased its payment every year since its formation in 2012. It has grown its payout at a more than 10% annual rate in each of the past three years.

The energy midstream company backs that payout with a strong financial profile. Long-term contracts and regulated rate structures support the bulk of its cash flow. Meanwhile, it produced enough cash to cover its hefty payout by a comfy 1.5 times in the first quarter. To top it all off, it ended the period with a low 3.3 leverage ratio, well below the 4.0 range its stable cash flows can support.

MPLX should have plenty of fuel to continue growing its high-yielding distribution in the future. It currently has several expansion projects under construction that should come online through the end of the decade. That gives it lots of visibility into the growth of its cash flows. It also has ample financial flexibility to make accretive acquisitions as opportunities arise and announced over $1 billion of bolt-on deals in the first quarter.

A model of consistency

NNN REIT currently has a more than 5.5% dividend yield. The real estate investment trust (REIT) has one of the best dividend growth track records in the sector. Only two other REITs and fewer than 80 publicly traded companies in the U.S. have reached that milestone.

The company invests in high-quality retail properties secured by long-term, triple-net leases (NNN). Those leases provide very stable cash flow, two-thirds of which it pays out in dividends. That enables it to retain about $200 million each year to invest in additional income-generating properties. It also has a conservative balance sheet, providing it with additional financial flexibility.

NNN REIT typically buys properties through existing tenant relationships, which has accounted for 75% of its acquisition volume since 2010. It does so by completing sale-leaseback transactions. This win-win strategy provides its retail clients with additional capital to expand their footprints, which opens the doors to future acquisition opportunities for the REIT.

Ideal income stocks

Brookfield Renewable, MPLX, and NNN REIT pay high-yielding dividends backed by rock-solid financial profiles. They also have outstanding records of growing their dividends, which seems likely to continue. That makes them great dividend stocks to buy for a potential lifetime of passive income.

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Matt DiLallo has positions in Brookfield Renewable and Brookfield Renewable Partners. The Motley Fool recommends Brookfield Renewable and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.