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Americans spend more than $100 billion annually on lottery tickets. Most of those tickets end up being worthless.
Investing that money is dividend stocks It’s a better bet than buying a lottery ticket. According to research, companies around the world paid out a whopping $1.7 trillion in dividends last year. Janus Henderson global. In addition to their income, the value of most dividend stocks increases over time. On average, high dividend stocks return 9.2% annually. total return For the past 50 years, according to hartford Foundation and Ned Davis Research. An investment of just $20 a month in dividend stocks could grow him to $1 million in about 65 years. By investing more money or investing in high-dividend stocks, you could become a millionaire even faster. That way, you can live off the income that dividend stocks pay out each year.
There are many good dividend stocks.Two high dividend stocks are real estate income (New York Stock Exchange: O) and brookfield infrastructure (NYSE:BIPC)(NYSE:BIP). They have made very rich investments over the years and it looks like they will continue to do so.
Increase your assets with this REIT
Realty Income is a real estate investment trust (REIT) with Diversified portfolio generate income commercial real estate. It owns grocery stores, pharmacies, convenience stores, warehouses, casinos, and data centers. These properties generate stable rental income, which Realty Income uses to make attractive and growing payments. monthly dividend. REITs are currently dividend yield 5.9%. At this rate, every $1,000 invested in the company’s stock could generate $59 in annual dividend income, or about $4.92 per month. The more money you invest, the more income you can earn.
REITs have a long history of increasing dividends. Since going public in 1994, the company has raised its dividend 124 times, including the past 106 consecutive quarters. This dividend increase has allowed Realty Income to generate a high total return of 13.4% per year on average. His $100 investment in 1994 has now grown to more than $4,500.
Real estate income should continue to generate attractive total returns. We aim to increase operating funds (FFO) 4% to 5% per share per year over the long term due to rental increases and investments in real estate that generate additional income. Add to this a dividend yield of about 6%, and real estate income can generate an average annual total return of 10% to 11%. Therefore, it can be a very profitable investment in the long run.
proven wealth creator
Brookfield Infrastructure owns a diverse portfolio of critical infrastructure assets in the utilities, energy midstream, transportation, and data sectors. These businesses generate highly predictable cash flows to support a 5.5% dividend yield.
The company has increased its quarterly dividend every year since its founding 15 years ago, and earlier this year it increased it by another 6%. Brookfield’s growing FFO and dividends have been a solid driver of average annual total returns of 14.6% since inception.
Brookfield Infrastructure is well-positioned to continue to grow value for shareholders. The company’s infrastructure portfolio can organically grow his FFO per share by 6% to 9% annually over the long term. That growth is driven by inflation-linked interest rate increases, increased production as the global economy expands, and expansion projects financed with retained cash flow after dividend payments. This organic growth easily supports Brookfield’s plan to increase its dividend by 5% to 9% annually.
In addition to that, Brookfield has another growth promoter. The company regularly sells mature assets and recycles that capital into new, more profitable investments. Last year, the company sold $1.9 billion in assets to fund $2 billion in new transportation and data investments. Three data center platforms. Brookfield’s capital recycling activities strengthen the view that the company can continue to grow its FFO per share by more than 10% annually. Add in a high-yield dividend, and Brookfield should easily be strong enough to generate total returns in the mid-teens each year.
Don’t waste your money on gambling
Most lotteries lose money. So you should forget about buying stocks and instead invest that money in high-dividend stocks. By doing so, you will be able to take advantage of these wealth-generating machines. By investing consistently in high-dividend stocks like Realty Income and Brookfield Infrastructure, you can slowly hit the jackpot as those investments grow in dividends and value.
Need to invest $1,000 in real estate income right now?
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Matt DiLallo has held positions with Brookfield Infrastructure, Brookfield Infrastructure Partners, and Realty Income. The Motley Fool has a position in and recommends Realty Income. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.
Forget about buying lottery tickets. Instead, stake your claim on this $1.7 trillion annual jackpot.Originally published by The Motley Fool
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