3 Can't-Miss Dividend Stocks to Buy Hand Over Fist This September

Dividend stocks can be fantastic investments. Historically, as a class, they have outperformed the average stock with less volatility than the broader market. The best performers have been companies that routinely increase their dividends.

Brookfield Renewable (NYSE: BEPC) (NYSE: BEP) , Williams (NYSE: WMB) , and Chevron (NYSE: CVX) have track records of solid dividend growth. Their reliability on that score is one of the many factors that make them stand out to a few Fool.com contributors as can't-miss dividend stocks to buy this month.

Brookfield Renewable is in the right place

Reuben Gregg Brewer (Brookfield Renewable): There are two ways to invest in Brookfield Renewable -- via a corporate share class that has a roughly 5% dividend yield or a partnership unit that yields a more attractive 5.6%. Both represent the same entity, but they have slightly different tax considerations. (Investing via the partnership requires unitholders to deal with a K-1 form that comes by April 15 each year.) That said, Brookfield Renewable's underlying business is attractive.

It's sponsored by Brookfield Asset Management , a Canadian asset manager with a long and successful history of investing in infrastructure assets on a global scale. Brookfield Renewable is a way for investors to invest alongside Brookfield Asset Management in clean energy. Brookfield Renewable's portfolio is large, spread across the world, and includes hydroelectric, solar, and wind assets, as well as batteries. It also has a large pipeline of projects in its backlog to keep the business, and dividends, growing over time.

The big story here, however, isn't really about Brookfield Renewable -- it's about clean energy in general. The world is shifting away from dirtier energy sources and toward cleaner ones. That will be a decades-long process, affording the companies taking part a long runway for growth. Brookfield Renewable is positioned to grow along with demand for clean energy, helped along by its experienced and well-respected parent. And its steadily rising distribution, which has had a compound annual growth rate of 6% since 2016, is proof that investors will benefit as Brookfield Renewable grows. Consider buying now while its yield is more than four times higher than you could get from an S&P 500 index fund.

Your pipeline to a growing passive income stream

Matt DiLallo (Williams): Natural gas infrastructure giant Williams has been as reliable an income stock as they come, paying dividends for 50 consecutive years. The company has grown its payouts at a 6% compound annual rate since 2018.

The pipeline operator generates durable cash flows backed by long-term contracts and government-regulated rate structures. It expects to produce a little more than $5 billion, or around $4.13 per share, of adjusted funds from operations (FFO) this year. That's enough to cover its high-yielding dividend (over 4% at the current share price) by about 2.2 times.

Williams retains the rest of its cash flow to invest in expansion projects and strengthen its already excellent balance sheet. It expects to invest $1.6 billion this year and $1.8 billion in 2025 on organic expansion projects that provide growth visibility through 2027. Those projects will support the company's expectation of delivering earnings growth of 5% to 7% annually over the long term.

The company complements its organic growth with accretive acquisitions. Williams recently completed the $2 billion acquisition of a major natural gas storage portfolio, and has inked $6.1 billion in strategic deals since 2021. Williams has ample financial flexibility to continue making such deals. It expects its leverage ratio to be below 3.9 this year and fall toward 3.6 in 2025, supporting its strong investment-grade credit rating.

With shares trading at around $45 these days, Williams is a bargain at less than 11 times its adjusted FFO. That cheap price is the driving factor behind its high dividend yield. Add in the ample fuel it has to continue growing its payout, and Williams looks like a can't-miss stock to buy for income and upside this September.

You won't regret buying this energy stock

Neha Chamaria (Chevron ) : Chevron boasts a stellar dividend track record -- the oil and natural gas company has increased its payouts for 37 straight years. Those hikes have come at an impressive rate in recent years, boosting shareholder returns significantly.

CVX data by YCharts.

The best part is that Chevron is already on track to increase its dividends further. Thanks to recent acquisitions and projects in the pipeline, Chevron expects its free cash flow (FCF) to grow at an average annual rate of at least 10% through 2027, assuming a Brent crude oil price of $60 per barrel. Brent crude is hovering around $79 per barrel as of this writing, so there's a lot of room for Chevron to grow its FCF even if oil prices drop substantially. Its FCF could grow even faster if the oil giant succeeds in acquiring Hess , as that deal is expected to more than double Chevron's FCF by 2027. Although ExxonMobil is trying to block the deal by claiming first rights over Hess' prized oil assets, Chevron has a fair chance of winning the arbitration battle now underway.

Chevron, however, has already proved its mettle as a dividend growth stock, and should continue to reward shareholders with bigger dividends year after year with or without Hess. Chevron's production is rising steadily, its balance sheet remains strong, and management is open to growth via acquisitions as opportunities arise. That makes Chevron a compelling dividend stock to own for the long term, and with its shares losing momentum in recent weeks and trading close to their 52-week low, the time is ripe to buy.

Matt DiLallo has positions in Brookfield Asset Management, Brookfield Renewable, Brookfield Renewable Partners, and Chevron. Neha Chamaria has no position in any of the stocks mentioned. Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Brookfield Asset Management, Brookfield Renewable, and Chevron. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy .