3 High-Yield Dividend Stocks I'd Buy for Their Cash Flow Alone
2026-07-28 12:30
•Matt Dilallo •The Motley Fool
••• •••• Axe Capital view
Three High-Yield Dividend Stocks Worth Watching for Income and Growth
Brookfield Infrastructure, Energy Transfer, and Realty Income prove strong cash flow fuels steady dividends and expansion.
For South African investors hunting yield in a low-interest environment, US-listed dividend stalwarts like Brookfield Infrastructure (BIPC), Energy Transfer (ET/ETPI), and Realty Income (O) offer interesting casts of income and growth. Brookfield Infrastructure stands out with a modest payout ratio (65%) and a huge backlog of expansion projects, signaling room to grow dividends beyond inflation. Energy Transfer's fee-based cash flow creates dependable distributions near 7%, backed by billions ploughed into organic growth. Realty Income, the retail REIT, impresses with decades of dividend raises and a payout ratio that leaves plenty for reinvestment. These stories highlight how robust free cash flow, not just headline yield, drives sustainable dividends and total returns. The rand-USD rate matters here: a weaker rand amplifies these income streams in local currency, though rand strength could weigh. If inflation drops faster than expected or US demand falters, the growth stories may slow. Still, for long-term yield seekers willing to navigate currency swings, these names deserve a spot to watch. this is just my opinion and not financial advice
Buy selectively into these high-yield US dividend names while hedging USD/ZAR risk. Trim if the rand rallies sharply or US growth fears spike.
- BIPC
- ET
- O
- USD/ZAR
- Stronger ZAR reducing US dividend value
- US inflation or growth weakening capex plans and dividend growth
6/10
The article highlights three high-yielding dividend stocks—Brookfield Infrastructure, Energy Transfer, and Realty Income—that generate substantial excess cash flow after paying dividends. These companies reinvest retained cash into expansion projects and new investments, supporting dividend growth and stock price appreciation while delivering strong total returns to investors.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Matt Dilallo
Categories: Rates, Equities, Capital Returns
Tickers: BIPC, ET, ETPI, O
Sentiment: Positive - Company generates stable cash flow with 65% payout ratio, retains meaningful capital for reinvestment, has $9B+ expansion backlog, and targets 10%+ annual FFO per share growth with 5-9% dividend growth. MLP generates $2.7B distributable cash flow with 90% from fee-based sources, maintains high 6.8% yield, investing $5.5-5.9B in organic expansion projects, and targeting 3-5% annual distribution increases.
Keywords: high-yield dividend stocks, cash flow, dividend growth, infrastructure, energy midstream, real estate investment trust, total returns
Insights:
- BIPC: Positive: Company generates stable cash flow with 65% payout ratio, retains meaningful capital for reinvestment, has $9B+ expansion backlog, and targets 10%+ annual FFO per share growth with 5-9% dividend growth.
- ET: Positive: MLP generates $2.7B distributable cash flow with 90% from fee-based sources, maintains high 6.8% yield, investing $5.5-5.9B in organic expansion projects, and targeting 3-5% annual distribution increases.
- ETPI: Positive: MLP generates $2.7B distributable cash flow with 90% from fee-based sources, maintains high 6.8% yield, investing $5.5-5.9B in organic expansion projects, and targeting 3-5% annual distribution increases.