TLDR
- Chevron offers 4.5% yield with 38 years of consecutive increases and plans dividend growth through 2030 even at $50 oil
- Enterprise Products Partners provides 6.9% yield with 27 straight years of distribution increases and 1.5x cash flow coverage
- Brookfield Asset Management expects 18% annual earnings growth through 2030 while doubling its $1 trillion asset base
- Diamondback Energy yields 2.8% with $37-38 breakeven costs and expects gas-fired power deals in Permian Basin
Investors seeking reliable passive income can consider four dividend stocks recommended by leading Wall Street analysts. These companies offer yields ranging from 2.8% to 6.9% backed by strong cash flows and growth plans.
Market volatility has increased demand for stable income-generating investments. Each of these dividend payers operates in essential industries with proven track records of shareholder returns.
Energy Sector Offers Multiple Opportunities
Chevron outlined its five-year strategy through 2030 at its November 12 Investor Day. The oil major has increased dividends for 38 consecutive years as of early 2025.
The company targets 2% to 3% annual oil production growth. Adjusted earnings per share and free cash flow should increase over 10% yearly at $70 per barrel oil prices.
Chevron will sustain dividends even if crude prices drop below $50 per barrel. Annual share repurchases of up to $20 billion provide additional returns to investors.
The $53 billion Hess acquisition will reduce future capital expenditures. Lower spending leaves more cash available for the current 4.5% dividend yield.
Diamondback Energy reported stronger-than-expected third quarter results from Permian Basin operations. The company distributed $892 million to shareholders in Q3 through buybacks and a $1.00 per share dividend.
RBC Capital analyst Scott Hanold maintains a buy rating with a $173 price target. He notes Diamondback’s breakeven costs of $37-38 per barrel rank among the lowest in the industry.
The company participates in a gas-fired power project supplying 50 million cubic feet daily to a 1,350-megawatt facility. Management sees potential for additional power and data center agreements.
High-Yield Options From Infrastructure
Enterprise Products Partners delivers a 6.9% distribution yield supported by consistent cash generation. The pipeline operator has raised payouts for 27 years in a row.
Enterprise Products Partners L.P., EPD
Distributable cash flows have exceeded dividend payments by 1.5 times or more since 2018. Long-term contracts with 90% including inflation adjustments protect revenue streams.
The company has $5 billion in capital projects completing by end of 2026. New assets will boost cash flows while capital spending decreases from 2026 forward.
This combination creates surplus cash for continued distribution increases. Enterprise Products Partners operates as one of America’s largest midstream energy companies.
Brookfield Asset Management controls over $1 trillion in assets across infrastructure, renewable energy, real estate, private equity and credit. More than 50% generates fee-based recurring revenue.
Brookfield Asset Management Ltd., BAM
The asset manager projects doubling its business within five years. Distributable earnings should grow 18% annually through 2030 driven by AI data centers and clean energy demand.
A $10,000 investment at the December 2022 spinoff would equal $18,000 today with reinvested dividends. Management’s growth targets support annual dividend increases for current shareholders.
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