3 Dividend Stocks I Love to Buy for Passive Income

I have an infatuation with generating passive income. It provides me with extra cash to invest in growing my wealth. Eventually, I aim to generate enough 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 dividend stocks for passive income.

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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 more than 10% annual cash flow per share growth, which should support 5% to 9% annual dividend growth.

27 and counting

Enterprise Products Partners is a leading U.S. energy midstream company that operates pipelines, processing plants, and export terminals. These assets also generate very stable cash flow. That supports the master limited partnership's (MLP) lucrative cash distribution (6.2% current yield).

The pipeline company has increased its payment by 2.8% over the past year, extending its growth streak to 27 consecutive years.

Enterprise Products Partners has ample fuel to continue growing its payout. It completed $6 billion of major expansion projects during the second half of last year, which will fuel accelerating earnings growth in 2026 as they ramp up. Meanwhile, the MLP expects to invest at least $2.5 billion into expansion projects this year and as much as $2.5 billion in 2027. Those projects will provide the company with incremental sources of cash flow through the end of next year to support continued distribution increases.

Built to pay a growing dividend

Realty Income's stated mission is to "deliver dependable monthly dividends that increase over time." The real estate investment trust (REIT) has certainly achieved its mission over the years. It has declared 667 consecutive monthly dividends since its formation, while increasing its payout for 113 straight quarters. Overall, the REIT has raised its dividend in all 31 years as a publicly traded company, growing its payout at a 4.2% compound annual rate.

The diversified global real estate giant's payout currently yields 5%. It should have no trouble continuing to increase its dividend. Realty Income has a conservative dividend payout ratio, enabling it to retain cash to invest in additional income-producing properties. It also has one of the best balance sheets in the REIT sector.

Realty Income's diversified investment approach gives it the flexibility to invest where it sees the best opportunities. For example, it recently made an $800 million preferred equity investment in two gaming properties. It also formed a $1.5 billion strategic partnership to invest in high-quality build-to-suit logistics properties. Overall, the REIT sees a massive $14 trillion total addressable market for real estate investment across the U.S. and Europe. Future investments in income-generating real estate should support Realty Income's ability to continue increasing its dividend.

Lots to love

Brookfield Infrastructure, Enterprise Products Partners, and Realty Income all pay high-yielding dividends that steadily grow. That's why I love to buy these dividend stocks. They're consistently providing me with more passive income, steadily bringing me closer to achieving financial freedom.

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.