Investing a thousand dollars in these three high-dividend stocks could generate more than fifty dollars of yearly passive income, boasting a high-quality yield.
In the world of business, growth and expansion are key to success, and two major companies, Oneok and Verizon, are making significant strides in their respective industries.
Oneok, a leading energy infrastructure company, is set to grow its dividend by 3% to 4% annually in the coming years. With approximately 90% of its revenue coming from fee-based contracts, Oneok operates a large and integrated energy infrastructure platform. The company has been on an acquisition spree in recent years, including the purchase of Magellan Midstream for $18.8 billion and the acquisition of Medallion Midstream and a controlling interest in EnLink Midstream for $5.9 billion last year. Most recently, Oneok bought the remaining interest in a joint venture for $940 million.
Oneok's dividend stability and growth are nothing short of impressive. Although it hasn't increased its dividend every year, it has raised it by more than 1,200% since 2000, delivering more than a quarter-century of dividend stability and growth.
Meanwhile, Verizon, a telecommunications giant, is making waves with its acquisition of Frontier Communications in a $20 billion deal. This move is expected to enhance Verizon's fiber operations and generate over $500 million in annual cost savings. Verizon generates recurring revenue from mobile and broadband businesses, and the acquisition is expected to boost these revenues further.
Verizon expects to generate $17.5 billion to $18.5 billion in free cash flow this year. Interestingly, Verizon's dividend costs more than $11 billion per year. However, the company pays out about 75% of its stable cash flow in dividends, a testament to its commitment to its shareholders.
Vici Properties, a real estate investment trust focused on owning gaming, hospitality, wellness, entertainment, and leisure destinations, is another company making headlines. Vici Properties has raised its dividend every year since its formation seven years ago, growing its dividend at a 7.4% compound annual rate, leading its triple net peers. Moreover, 42% of Vici Properties' leases this year provide stable cash flow that rises with inflation, increasing to 90% by 2035.
In conclusion, Oneok and Verizon are making strategic moves that are expected to fuel earnings growth through 2027. Oneok's acquisitions and organic expansion projects are set to grow its dividend, while Verizon's acquisition of Frontier Communications is expected to boost its fiber operations and revenue streams. Meanwhile, Vici Properties continues to lead its peers in dividend growth, with a significant portion of its leases providing inflation-adjusted cash flows. These developments underscore the companies' commitment to growth and their confidence in their respective industries' future prospects.
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