The S&P 500 index is only offering investors a 1.3% or so return today, which is pretty bad by almost any standard. You can do a lot better than that. If you have $100, $1,000, $10,000 or more, you want to look at high-yielding stocks like Enbridge (NYSE: ENB), WEC Energy (NYSE: WEC)And Brookfield Renewable (NYSE: BEP)(NYSE: BEPC)Below is a brief overview of each aspect.

1. Enbridge has a high efficiency of 7.4%

Enbridge is an energy infrastructure company with a portfolio that includes oil pipelines, natural gas pipelines, regulated natural gas utilities and renewable energy. The vast majority of its revenue comes from its pipelines, which account for about 75% of its earnings before interest, taxes, depreciation and amortization (EBITDA). Meanwhile, all of its assets are driven by fees, contracts or regulated revenue streams, so the cash flows it generates are very consistent over time.

Enbridge has managed to increase its dividend annually for 29 consecutive years. The dividend is also supported by an investment-grade balance sheet. And the distributable cash flow payout ratio is well within management’s target range of 60% to 70%. The impressive 7.4% dividend yield appears to be on rock-solid ground. The only downside is that yield will likely account for the majority of returns here, with modest growth expected over time. But if you’re an income investor, that probably won’t matter to you.

2. WEC Energy is a stable dividend grower with a yield of 4.1%

WEC Energy is a pretty boring natural gas and electric utility that serves 4.7 million customers in parts of Wisconsin, Illinois, Michigan, and Minnesota. That said, it has increased its dividend for 21 years, and at a fairly rapid annual rate of 7% over the past one-, three-, five-, and 10-year periods. That’s consistent and perhaps a little boring. Note, however, that 7% dividend growth would be about twice the historical growth rate of inflation, meaning that the purchasing power of WEC Energy’s dividend has grown quite a bit over time. That’s actually pretty exciting.

The company’s yield is now 4.1%, well above the utility sector average of around 3.2%. The dividend yield is also near the highest levels of the past decade for WEC Energy. That’s more a function of utilities being out of favor than anything else, though, as management still forecasts earnings growth of between 6.5% and 7% through at least 2028. The dividend will likely grow roughly in line with earnings.

3. Brookfield Renewable has a long growth period and a yield of no less than 5.4%

Brookfield Renewable’s yield is 5.4% if you buy the partnership units. It’s slightly lower, at 4.7%, if you buy shares of the company. Both represent the same entity, which focuses on investing in the clean energy sector. This is a targeted bet on the global transition from carbon-based energy to renewable energy sources, such as hydro, solar, wind, battery storage and more. The transition is likely to take decades, suggesting that Brookfield Renewable has plenty of growth ahead of it.

The story continues

But why are there two stock options? Brookfield Renewable’s parent company is Brookfield Asset Management (NYSE: BAM)a large Canadian asset management firm known for serving institutional-level clients. The firm created Brookfield Renewable so that smaller investors could participate in its deals. And after initially creating the entity Brookfield Renewable Partners, Brookfield created the related Brookfield Renewables Corporation, as some investors are wary of owning partnerships. That said, it’s important to recognize that Brookfield Renewable is run as an investment firm, so it buys and sells assets all the time. But if you think clean energy is a long-term opportunity, this is a great way to collect dividends while investing in that opportunity.

Three Great Ways to Get Paid

Enbridge, WEC Energy, and Brookfield Renewable all offer above-average yields and strong businesses. If you’re looking for a place to invest some of your hard-earned savings, each is worth a look. And if you buy one or more, you’ll be positioning yourself to collect attractive dividend checks quarter after quarter.

Should You Invest $1,000 in Enbridge Now?

Before you buy Enbridge stock, you should consider the following:

The Motley Fool Stock Advisor team of analysts has just identified what they think is the 10 best stocks for investors to buy now… and Enbridge wasn’t one of them. The 10 stocks that made the cut could deliver monster returns in the years to come.

Think about when Nvidia made this list on April 15, 2005… if you had $1,000 invested at the time of our recommendation, you would have $722,626!*

Stock Advisor offers investors an easy-to-follow blueprint for success, including portfolio building guidance, regular analyst updates, and two new stock picks each month. Stock Advisor is on duty more than quadrupled the return of the S&P 500 since 2002*.

View the 10 stocks »

*Stock Advisor returns as of July 15, 2024

Reuben Gregg Brewer has positions in Enbridge and WEC Energy Group. The Motley Fool has positions in and recommends Brookfield Asset Management, Brookfield Renewable and Enbridge. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

3 No-Brainer High Yield Stocks to Buy Now with $1,000 Originally published by The Motley Fool