3 Top High-Yield Dividend Stocks I Plan to Buy in July to Boost My Passive Income

I love to generate passive income. It gives me more money to invest. It also provides me with more peace of mind, knowing I'll have supplemental income to help cover my bills if needed. I eventually want to become financially independent by generating enough passive income to cover all my basic living expenses.

I strive to increase my passive income each month by investing in additional income-generating assets. Buying high-yielding dividend stocks is a core aspect of my income strategy. Three that I plan on purchasing this July to boost my passive income are Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP), Chevron (NYSE: CVX), and W.P. Carey (NYSE: WPC). Here's why I think they're great dividend stocks to buy for income.

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A dividend growth machine

Brookfield Infrastructure is a leading global infrastructure investor. It has a diversified platform of utilities, energy midstream, transportation, and data assets. Its infrastructure investments generate stable and steadily growing cash flow, which supports its more than 4%-yielding dividend.

The company gets 85% of its funds from operations (FFO) from contracted or regulated assets that either index its earnings to inflation or protect it from its effects. Brookfield estimates that inflation indexation alone will add 3% to 4% to its FFO per share each year. Meanwhile, the company expects volume growth as the global economy expands to add another 1% to 2% to its annual FFO per share.

Brookfield pays out 60% to 70% of its stable cash flow in dividends. That enables it to retain cash to reinvest into growth capital projects. It anticipates that those investments will boost its FFO per share by 2% to 3% annually. On top of that, Brookfield routinely makes accretive acquisitions funded by recycling capital. The company anticipates that its quartet of growth drivers will fuel more than 10% annual FFO per share growth. That easily supports its plan to grow its high-yielding dividend by 5% to 9% annually. Brookfield has increased its payment every year since its formation 16 years ago, growing it at a 9% compound annual rate.

A high-octane payout

Oil giant Chevron's dividend yield is approaching 5%. That high-yielding payout is on a rock-solid foundation. Chevron has the lowest breakeven levels in the sector at around $30 per barrel, more than 50% below the recent price point. The company also has one of the strongest balance sheets in the oil industry. It had an ultralow leverage level of 14% at the end of the first quarter, well below its 20%-25% target range.

Chevron's resilient portfolio and fortress balance sheet have supported its ability to consistently increase its dividend. It has raised its payout for 38 straight years, which includes multiple commodity price cycles. The company has delivered peer-leading growth over the past 10 years.

The oil company is in an excellent position to continue growing its dividend. It expects its current slate of growth projects to add $9 billion to its free cash flow next year at $60 oil. Chevron is also working to significantly enhance and extend its production and free cash flow growth outlook by acquiring Hess in a deal it hopes to close later this year.

A steady dividend grower

W.P. Carey is a diversified real estate investment trust (REIT). It owns operationally critical real estate, including warehouse, industrial, retail, and other properties, net leased to credit-worthy tenants across North America and Europe. Its leases feature rental escalations that raise rates at either a fixed rate or one tied to inflation. The REIT's portfolio provides stable and growing rental income to support its 5.5%-yielding dividend.

The landlord pays out about 70% to 75% of its stable cash flow in dividends. That level allows it to retain some funds to reinvest in additional income-generating real estate. It also has a strong balance sheet to fund new investments. New properties supply it with additional sources of growing rental income.

W.P. Carey's growing rental income enables it to increase its dividend. The REIT has raised its payment every quarter since resetting the level in late 2023 following its strategic decision to exit the office sector by selling and spinning off those properties. Before that reset, it had increased its dividend annually for a quarter-century.

Top-notch passive income producers

Brookfield Infrastructure, Chevron, and W.P. Carey pay high-yielding dividends that steadily increase. They can supply me with a lot of passive income now and even more in the future. That income potential is why I plan to buy even more shares of these top dividend stocks in July.

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Matt DiLallo has positions in Brookfield Infrastructure, Brookfield Infrastructure Partners, Chevron, and W.P. Carey. The Motley Fool has positions in and recommends Chevron. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.