Well-chosen dividend stocks can make you richer. Investing in these proven wealth creators during a stock market crash can be even more lucrative. Buying great stocks when their dividend yields are high and share prices are low is a proven, fortune-building strategy.
Here are two excellent dividend stocks with impressive track records of enriching their investors with steadily increasing cash payments. These battle-tested businesses can help you grow your own streams of passive income.
Top-dividend stock to buy No. 1: Realty Income
Real estate and passive income go together like peanut butter and jelly. Yet here's a tip that many investors don't know: You can claim your share of this lucrative asset class without the headaches that often come with being a landlord. Real estate investment trusts ( REITs ) offer a hassle-free way to earn bountiful and dependable streams of dividend income from some of the best investment properties. And Realty Income (NYSE: O) is the cream of the crop.
With ownership stakes in 15,450 commercial properties leased to over 1,500 different customers across 90 industries, Realty Income's investment portfolio is well diversified. The REIT's focus on recession-resistant businesses, such as grocery, drug, and discount-retail stores, further reduces the risks for shareholders. Major clients include Walmart , CVS Health , and Dollar Tree . This sensible approach has enabled Realty Income to maintain occupancy rates of at least 96% for over 30 years.
Better still, Realty Income needs to pass at least 90% of its earnings on to its investors to take advantage of the tax savings available to REITs. It does so by paying out a rising torrent of cash dividends. The real estate titan has rewarded its shareholders with 649 straight months of cash payments -- and raised its dividend for 107 consecutive quarters. Realty Income's stock currently yields a solid 5.25%.
Top-dividend stock to buy No. 2: Enbridge
If you'd like to earn even more passive income, take a look at Enbridge (NYSE: ENB) . The energy-infrastructure colossus is offering you a wealth-building 6.68% dividend yield today.
Enbridge's vast pipeline network ships roughly 30% of the crude oil produced and 20% of the natural gas consumed in the U.S. It derives nearly all its cash flow from volume-based, long-term contracts that help to insulate its shareholders from commodity price swings. This low-risk business model produces predictable results across economic cycles, which has enabled Enbridge to increase its cash distributions to investors for 29 consecutive years.
That impressive streak is likely to persist. Powerful growth drivers are set to fuel Enbridge's expansion. These include the growing need for liquified natural gas in Europe and Asia, as well as booming demand for renewable energy like wind and solar, areas in which Enbridge is investing aggressively.
Yet perhaps Enbridge's most exciting source of growth lies in data centers. Soaring demand for artificial intelligence (AI) services is creating an urgent need for more electricity. Much of this electricity will come from new natural gas power plants and renewable energy projects. Enbridge's irreplaceable infrastructure is set to play a vital role in connecting power producers with data-center operators and other energy-hungry customers.
With multiple trends fueling its growth, Enbridge is well-positioned to deliver steadily rising streams of passive income to its shareowners in the years ahead.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Enbridge, Realty Income, and Walmart. The Motley Fool recommends CVS Health. The Motley Fool has a disclosure policy .
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