3 Dividend Stocks I'm Thankful for This Year

My top financial goal is to generate enough passive income to cover my basic living expenses. That would enable me to become financially independent.

I've gained a lot more financial independence over the past year due to the steadily rising passive income generated by my portfolio. Three of my largest income-producing investments are Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP), Energy Transfer (NYSE: ET), and Realty Income (NYSE: O). I'm very thankful for the growing peace of mind their income has provided over the past year.

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The steady growth should continue

I've owned shares of Brookfield Infrastructure since its formation in 2008. As a result, I've benefited from the global infrastructure operator's steadily rising dividend over the years. This year marked the 16th consecutive year that Brookfield Infrastructure increased its dividend payment, which it has grown at a 9% compound annual rate during that time frame.

I currently earn a 9.4% annualized income yield on the cost basis of my Brookfield Infrastructure shares. That's more than double the company's current dividend yield (3.9%).

My income yield should continue rising in the future. Brookfield expects to increase its already high-yielding payout by 5% to 9% per year. That's easily achievable. The company currently anticipates growing its funds from operations (FFO) per share at a rate exceeding 10% annually, driven by organic growth and acquisitions. Brookfield has secured $2.1 billion in new acquisitions over the past year, along with a growing list of organic expansion projects, including AI data centers. That puts it in a strong position to achieve its dividend growth target.

Ample fuel to continue growing its payout

Energy Transfer has been a part of my income portfolio since 2020. The investment got off to a rocky start as the master limited partnership (MLP) cut its distribution in half shortly after I bought units. However, Energy Transfer has steady rebuilt its payout and now pays a higher distribution level than it did before the pandemic. The company also merged with another MLP I owned a few years ago.

As a result, it has grown into my top income-generating dividend stock investment. I currently earn a 10.2% annualized yield on my cost basis, well above its current 8.2% yield.

Energy Transfer plans to increase its already high-yielding payout by 3% to 5% per year. It's in a strong position to achieve that target. The company has a multi-billion-dollar backlog of commercially secured expansion projects on track to enter commercial service through 2029. The MLP also has several additional projects under development. Meanwhile, it's in its best financial position in history, giving it ample flexibility to fund expansion projects, make acquisitions as opportunities arise, and continue increasing its distribution.

Continuing to achieve its mission

I started buying shares of Realty Income a few years ago. I've steadily built up a sizable position in the real estate investment trust (REIT). As a result, it produces a lot of passive income for my portfolio.

Realty Income's mission is to deliver a dependable monthly dividend to its investors that increases over time. The REIT has certainly succeeded in that mission over the years. It has raised its payment 132 times since its public market listing in 1994, including the past 112 quarters in a row. Realty Income has grown its payout at a 4.2% compound annual rate during that time frame.

The REIT is in an excellent position to continue growing its high-yield dividend (5.7% current yield). It has one of the strongest financial profiles in the industry, giving it ample flexibility to continue investing in income-generating real estate. Realty Income plans to invest about $5.5 billion this year. That's a tiny sliver of the $14 trillion total investable market opportunity it sees across the U.S. and Europe.

Thankful for the growing financial independence they provide

Brookfield Infrastructure, Energy Transfer, and Realty Income have provided me with a lot of passive dividend income over the past year. They should supply me with even more in the future as they continue to grow their dividend payments. That's why I'm thankful to own shares as they're helping me steadily become more financially independent.

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