Core Viewpoint - Companies with strong histories of dividend growth are positioned to provide investors with a reliable stream of income and potential for capital appreciation, outperforming non-dividend payers historically [1][2]. Group 1: Brookfield Infrastructure - Brookfield Infrastructure has demonstrated a solid dividend growth track record, with a 9% compound annual growth rate over the past 15 years and a current yield of nearly 4% [3][5]. - The company aims to continue its dividend growth at an annual rate of 5% to 9%, supported by a robust growth profile with expected funds from operations (FFO) per share growth of over 10% annually [4][5]. - Currently trading at approximately 14.1 times its FFO, Brookfield Infrastructure is below its historical average, presenting an attractive value proposition for investors [5]. Group 2: NextEra Energy - NextEra Energy is recognized for its elite dividend growth, having increased its payout for 30 consecutive years, with a historical growth rate of around 10% annually over the last 20 years [6][7]. - The company maintains a low dividend-payout ratio of 59%, which supports its expectation of a 10% annual increase in dividends through at least 2026 [7][8]. - NextEra Energy benefits from operating the largest electric utility in Florida and is heavily investing in renewable energy, positioning itself for continued growth [8]. Group 3: Prologis - Prologis has achieved above-average dividend growth, with a 13% compound annual growth rate over the last five years, significantly outpacing the S&P 500 and other REITs [9][10]. - The company anticipates continued dividend increases driven by strong demand for warehouse space, high occupancy levels, and rental rate growth, projecting high single-digit annual same-store income growth through 2026 [10]. - Prologis also expects to grow its core FFO per share by 9% to 11% annually, with additional growth potential from accretive acquisitions [10]. Group 4: Overall Investment Opportunity - Brookfield Infrastructure, NextEra Energy, and Prologis are all characterized by attractive dividends and strong growth prospects, making them compelling investment choices for generating above-average total returns [11].
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