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I have been steadily adding to my Energy Transfer (ET 0.50%) position this year. I've purchased units of the master limited partnership (MLP) three times already this year. It's one of my favorite energy investments for generating passive income. I also like that the midstream company has strong growth visibility as it builds out its natural gas infrastructure to support growing power demand from AI data centers.

However, as much as I like investing in the MLP, Brookfield Infrastructure (BIPC 0.75%)(BIP 1.34%) has surpassed it as my favorite energy stock to buy right now. Here's why it's the first one I plan to buy in July.

Image source: Getty Images.

A more compelling value proposition this month Energy Transfer is having a strong year. Units of the MLP are already up more than 15%, nearly doubling the S&P 500's 8% return. That surge has driven down its distribution yield to 7%. While that's still a very attractive level compared to the S&P 500's 1.1% yield, it's not as high as it was earlier this year.

Brookfield Infrastructure, on the other hand, has trailed both the S&P 500 and Energy Transfer by declining more than 15% on the year. That sell-off has driven down its dividend yield to 4.7%. That's a very attractive level for such a high-quality income stream. Brookfield has increased its dividend for 17 straight years (every year since its inception), growing it at a 9% compound annual rate. The company expects to deliver 5% to 9% annual dividend growth going forward, much faster than the 3% to 4% annual distribution growth rate Energy Transfer expects.

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Faster, broader AI-fueled growth Shares of Brookfield Infrastructure have sold off this year even though its growth rate is accelerating. The company's funds from operations (FFO) per share grew 10% in the first quarter, up from the 6% growth rate it delivered last year. Notable drivers included its data segment (up 46%) and its energy midstream segment (up 12%).

Brookfield Infrastructure expects to deliver more than 10% annual FFO per share growth going forward. It anticipates delivering 6% to 9% annual organic growth, driven by inflation-indexed rate increases, volume growth as the global economy expands, and growth capital projects. Brookfield currently has over $9 billion of growth capital projects in its backlog across its utilities, transport, midstream, and data infrastructure segments. Its expertise in energy is leading Brookfield to invest directly in developing data centers. It's also investing in deploying advanced fuel cells at data centers under long-term contracts with the operating tenants.

Additionally, Brookfield expects to continue making value-enhancing acquisitions. The company has secured about $1.5 billion of new investments over the past year, including an interest in a leading U.S. refined products pipeline system, a South Korean industrial gas business, and a natural gas infrastructure business in New Zealand. These and future acquisitions should help push its growth rate above 10% annually.

Overall, Brookfield has a much more diversified growth profile compared to Energy Transfer, with multiple AI-related catalysts. While Energy Transfer is building new gas pipelines to support AI-driven power demand, Brookfield is investing directly in powered AI data centers. It's also investing in natural gas pipelines and utility projects to support rising power demand. Additionally, it's investing in other AI infrastructure solutions, including an industrial gas business in South Korea that supports semiconductor manufacturers, and recently launched an exclusive industrial equipment leasing platform for data centers.

A better opportunity this month Energy Transfer remains one of my favorite income investments from the energy sector. However, Brookfield Infrastructure is a more compelling investment opportunity this month, given its 15% year-to-date decline in share price. That boosted its yield and total return potential, which is why I plan to make it the first energy stock I buy in July.

I don't love valuation models because they rely on assumptions, and assumptions can be dangerous. But we still need to pay attention. I sold my position in BIPC not because I don't like the stock or that I'm spooked by recent movement, but rather in the optic of portfolio simplification. Since I started this portfolio in September 2017, I have received a total of $36,444.54 CAD in dividends.

I discuss two elite investment vehicles specifically designed to provide attractive current yields and long-term reliability for your retirement. I detail how these 'dividend machines' utilize inflation-indexed contracts and global diversification to protect your purchasing power in any economic climate. I also share the risks that could undermine WPC's and BIP's total return propositions.

I own lots of stocks, most of which pay dividends. I focus on dividends stocks because I like earning passive income. They've also historically delivered much higher returns compared to non-dividend payers.

Three of my favorite dividend stocks are Brookfield Infrastructure (BIPC +0.72%)(BIP +0.03%), Enterprise Products Partners (EPD 0.51%), and Realty Income (O +0.64%). I already have sizable positions in all three. However, I wouldn't think twice about doubling my positions. Here's why.

Image source: Getty Images.

Robust growth ahead Brookfield Infrastructure has everything I look for in a core dividend holding. It generates very durable cash flows to support its high-yielding payout (currently 4.8%). About 85% of its earnings come from long-term, fixed-rate contracts or government-regulated revenue frameworks, which either indexes its revenue to inflation or protect it from inflation's impact.

The diversified global infrastructure operator also has a strong financial profile. It has a conservative dividend payout ratio (60% to 70% of its stable cash flows) and a strong, investment-grade balance sheet. That gives it significant financial flexibility to continue growing its operations and its dividend.

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Brookfield Infrastructure also has solid growth prospects. It expects to grow its cash flow per share at a more than 10% annual rate going forward, driven by inflation-linked rate increases, expansion projects, and acquisitions. That should support dividend growth of 5% to 9% per year. Brookfield has increased its payout for 16 straight years, growing it at a 9% compound annual rate.

A big growth wave with more coming down the pipeline Enterprise Products Partners is an exceptional income holding. The master limited partnership (MLP) -- it sends investors a Schedule K-1 Federal tax form -- currently yields 5.6%. The energy midstream company has increased its distribution for 27 consecutive years.

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37.09

The MLP is in a strong position to continue growing its high-yielding payout. It has a fortress financial profile. Enterprise Products Partners generates very stable cash flow, primarily backed by long-term, fixed-rate contracts or government-regulated rate structures. The company generated enough cash to cover its distribution by 1.7 times last year, enabling it to retain lots of cash to reinvest in the partnership. It also has the strongest balance sheet in the energy midstream sector.

Enterprise Products Partners completed $6 billion of growth capital projects during the second half of last year, which will meaningfully boost its cash flow in 2026. Meanwhile, the company has another $4.8 billion in expansion projects under construction that should enter commercial service over the next two years, providing it with strong growth visibility.

The model of consistency Realty Income is the epitome of an income stock in my book. The real estate investment trust (REIT) pays a high-yielding monthly dividend (5.3% current yield) that it routinely increases. It has raised its dividend 134 times since its public market listing in 1994, growing it at a 4.2% compound annual rate. The REIT has increased its payout for 31 consecutive years and 114 quarters in a row.

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62.30

The company owns a diversified real estate portfolio secured by long-term, triple-net leases. That lease structure produces very stable cash flow because tenants cover all property operating costs. Meanwhile, the REIT has a conservative dividend payout ratio (75%) and a top-tier balance sheet, giving it lots of flexibility to invest in additional income-generating properties.

Realty Income expects to invest $8 billion in expanding its real estate portfolio this year. It should have no shortage of investment opportunities. It estimates there's a $14 trillion opportunity to invest in net-lease real estate across the U.S. and Europe.

Core income holdings Brookfield Infrastructure, Enterprise Products Partners, and Realty Income have all the features I desire in a dividend stock. They pay well-supported, high-yielding dividends that should continue growing. That's why I wouldn't think twice about doubling my positions right now if I had the available cash.

Matt DiLallo has positions in Brookfield Infrastructure, Brookfield Infrastructure Partners, Enterprise Products Partners, and Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Brookfield Infrastructure Partners and Enterprise Products Partners. The Motley Fool has a disclosure policy.

The 4% rule is quietly failing millions of retirees, and the S&P 500's measly 1% yield is forcing dangerous asset liquidation strategies that could collapse under a single bad decade. I detail my proven 7–8% yielding portfolio engineered to deliver sustainable income that outpaces inflation without relying on selling shares. I also discuss the opportunistic capital recycling strategy that turns market volatility from a retirement threat into a compounding accelerator.

Investing involves risk. However, some investments are much lower risk than others. Companies that generate contractually guaranteed revenues, have fortress financial profiles, and boast clearly visible growth profiles are at the lower end of the risk spectrum.

Brookfield Infrastructure (BIPC +0.72%)(BIP +0.03%), NextEra Energy (NEE +0.98%), and Vici Properties (VICI +1.03%) have all those traits. That enables them to pay growing dividends. Their combination of income, financial strength, and growth makes them as close to a sure thing as you'll find in a stock investment.

Image source: Getty Images.

A robust growth outlook Brookfield Infrastructure operates a globally diversified portfolio of utility, midstream, transport, and data infrastructure assets. Most of its businesses operate under highly contracted or regulated frameworks (85% of its funds from operations or FFO) with a very long duration (nine years on average). As a result, it produces very stable cash flow (only 5% is market sensitive), which benefits from inflation (70% indexed to inflation).

The company has a strong financial profile. Brookfield pays out 60% to 70% of its stable cash flow in dividends (a current yield of 4.3%). It also has a healthy balance sheet (BBB+ credit rating). The company's financial flexibility enables it to invest in organic expansion projects and make acquisitions to grow its operations and earnings.

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Brookfield currently has over $9 billion of organic expansion projects it expects to complete over the next three years, including multiple data centers worldwide and two U.S. semiconductor foundries. Additionally, Brookfield routinely recycles capital by selling mature businesses and reinvesting the proceeds into higher-returning new investments (it secured $1.5 billion of new investments last year). The company's multiple growth drivers should support FFO per share growth of more than 10% annually and dividend growth of 5% to 9% per year. Brookfield has increased its dividend for 16 straight years.

A powerful growth forecast NextEra Energy operates the country's largest electric utility (FPL) and a leading clean energy infrastructure development platform (NextEra Energy Resources). FPL generates stable government-regulated revenues while the energy resources segment produces steady cash flow by selling power to other utilities and large corporations under long-term, fixed-rate power purchase agreements.

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85.67

The energy company has a conservative dividend payout ratio and a top-tier balance sheet (Baa/A- credit ratings). That gives it the financial flexibility to invest in growing its operations.

NextEra Energy sees the potential to invest up to $325 billion in capex through 2032, including building new renewable energy capacity, investing in data center hubs, and constructing electricity transmission lines. This investment level should support more than 8% annual adjusted earnings-per-share growth over that time frame. That should enable NextEra to continue increasing its 2.7%-yielding dividend (6% annual growth targets for 2027 and 2028), which it has done for more than 30 years.

A low-risk gamble on a growing income stream Vici Properties is a real estate investment trust (REIT). It invests in experiential real estate, including gaming, hospitality, wellness, entertainment, and leisure destinations. It leases its owned properties back to high-quality operating companies under very long-term triple-net leases (a nearly 40-year weighted-average remaining lease term). Vici Properties also invests in real estate-backed loans. These investments generate very stable income.

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The REIT pays out about 75% of its adjusted FFO in dividends (a current yield of 6.3%), retaining the rest to reinvest in new experiential real estate. It also has a solid investment-grade balance sheet, with its leverage ratio currently at the low end of its target range.

Vici Properties' leases increasingly escalate rents at rates tied to inflation (42% of its leases in 2026, rising to 90% by 2035). As a result, its existing portfolio should generate stable and steadily rising rental income. Meanwhile, Vici Properties routinely invests in new properties, often through existing partnerships. It has the option to acquire several properties from existing partners. These growth drivers should enable Vici to continue increasing its dividend. The REIT has grown its payout at a 6.6% compound annual rate since the end of 2018, triple the pace of other REITs focused on investing in triple-net lease real estate.

Bankable dividend stocks While there's no sure thing in investing, Brookfield Infrastructure, NextEra Energy, and Vici Properties look like safe bets. They should continue growing their earnings and dividends at healthy rates, positioning them to deliver strong total returns over the long run. They're ideal stocks for those seeking investments with a high likelihood of paying off.

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Diversification and valuation make this important Bloom partner a lower-risk investment in the future of hydrogen and AI.