3 High-Yielding Dividend Stocks I Can't Wait to Buy for Passive Income in March

Like many people, I'm becoming increasingly anxious about the impact AI will have on my income. That's hastening my desire to achieve financial freedom. Doing so would ease the burden if my income from working took a big hit.

A key aspect of my strategy is to invest in high-quality, high-yielding dividend stocks. They supply me with growing streams of passive income, inching me closer to achieving financial freedom. Three high-yield dividend stocks I'm eager to buy this month are Enterprise Products Partners (NYSE: EPD), Invitation Homes (NYSE: INVH), and W.P. Carey (NYSE: WPC). Here's why I can't wait to add to my positions this March.

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27 years and counting

Enterprise Products Partners is a leading energy midstream company. The master limited partnership (MLP) operates pipelines, processing plants, and export terminals crucial to the energy sector. Long-term, fixed-rate contracts and government-regulated rate structures underpin most of its assets, enabling the MLP to generate very durable cash flows.

The energy infrastructure giant currently has a distribution yield of more than 6%. That's several times higher than the S&P 500 (1.1% yield), enabling me to generate more income from every dollar I invest.

The MLP's high-yielding payout is on a rock-solid foundation. It generated enough cash to cover its payout by a comfortable 1.7 times last year. Meanwhile, it has the best balance sheet in the energy midstream sector. That gives it ample financial flexibility to fund its continued growth.

Enterprise Products Partners currently has $4.8 billion in major capital projects under construction, which should enter commercial service through the end of next year. They'll give the MLP more fuel to continue increasing its high-yielding distribution, which it has done for 27 consecutive years.

My rental property replacement

Investing in rental properties can be a great way to generate passive income. Invitation Homes makes it easy to invest in rental properties without the high upfront costs and hassles of managing tenants. The real estate investment trust (REIT) is a leader in owning and managing single-family rental homes. Its leased homes generate stable rental income while its property management business produces steady management fees. These income streams support its 4.5%-yielding dividend.

The REIT has a conservative dividend payout ratio and balance sheet. That enables it to steadily expand its rental property portfolio. It will buy homes off the open market, from other investors, and directly from builders. Last year, nearly all of the more than 2,400 homes it bought were through builder relationships. It funded most of those new investments by selling existing homes to families who were purchasing them for their own use.

In addition to its growing rental property portfolio, Invitation Homes benefits from rising rental income as leases expire and it signs new ones at higher rates. Additionally, the company is expanding its property management business and recently bought leading build-to-rent developer ResiBuilt Homes to enhance its in-house development capabilities. The REIT's multiple growth drivers support its ability to increase its dividend. Invitation Homes has raised its payment every year since its IPO in 2017.

A steadily rising income stream

W.P. Carey is also a REIT. It owns a diversified portfolio of mission-critical retail, warehouse, industrial, and other properties secured by long-term, net leases with built-in rent escalations. Net leases produce very stable rental income because tenants cover all property operating costs. That supports W.P. Carey's 4.9%-yielding dividend.

The REIT has a conservative dividend payout ratio and a strong balance sheet. That enables it to expand its portfolio. W.P. Carey invested a record $2.1 billion last year and plans to invest between $1.3 billion and $1.7 billion in 2026.

Rising rental income from existing leases and incremental income from new investments support the REIT's growing dividend. W.P. Carey has increased its dividend every quarter since resetting the payout in late 2023 following its strategic decision to exit the office sector. Before that, it had raised its dividend at least once a year for a quarter century.

Higher income now and even more in the future

Enterprise Products Partners, Invitation Homes, and W.P. Carey are great fits for my passive-income investment strategy. They all pay high-yield dividends backed by stable cash flows and strong financial profiles. The trio also grow their payouts, which should continue. Their attractive and steadily rising income streams should help me reach financial freedom faster, which is why I can't wait to buy more shares of each one this March.

Matt DiLallo has positions in Enterprise Products Partners, Invitation Homes, and W.P. Carey. The Motley Fool has positions in and recommends Invitation Homes. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.