3 stocks to buy with dividends paying more than 3%

If you are looking for a stable income, you won’t get much by putting your money in money market funds. Low interest rates have also kept bond yields very low.

There is an alternative that can offer you much more attractive returns: dividend-paying stocks. Of course, not all stocks that pay a dividend are a wise choice. Here are three dividend paying stocks with returns over 3% that look like great buying candidates right now.

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1. Brookfield Infrastructure Partners

Brookfield Infrastructure Partners (NYSE: BIP) offers a hefty 3.8% dividend yield. Its yield has never fallen below 3.5%.

There’s a main reason why Brookfield Infrastructure Partners’ dividend record is so impressive: Its business is remarkably stable. The company, as the name suggests, owns infrastructure assets. These assets – including cell towers, data centers, pipelines, ports, railways and toll roads – generate steady cash flow month after month.

This stable business model gives Brookfield Infrastructure a nice cushion of safety during tough economic times. During the COVID-19 pandemic, the company’s financial performance was not significantly affected. Brookfield Infrastructure Partners also has huge growth prospects with what the company calls an “infrastructure investment supercycle”.

Brookfield Infrastructure Partners is a limited partnership (LP), which might complicate your taxes a bit. You can also invest in Brookfield Infrastructure Corporation (NYSE: BIPC), which is the same underlying business but organized as a traditional company to avoid any tax issues. Although the linked stock pays the same dividend as the limited partnership, its yield is less than 3% due to a lower stock price.

2. Brookfield Renewable Partners

There is another Brookfield Infrastructure Partners related stock that income-seeking investors will likely love: Brookfield Renewable Partners (NYSE: BEP). Its dividend yield is currently close to 3.3% and has never fallen below 3%.

Brookfield Renewable and Brookfield Infrastructure are managed by the same general partner, hence their similar names. Brookfield Renewable Partners, however, is focused on renewable energy. It operates hydroelectric, solar and wind power generation facilities across the world.

Renewable energies are enjoying greater demand than ever. The main countries have set themselves ambitious targets for reducing carbon emissions. President-elect Joe Biden wants to put the US economy on a path to 100% clean energy use by 2050. Brookfield Renewable Partners is well positioned to take advantage of the green wave.

As you might have guessed from the name, Brookfield Renewable Partners is also an LP. You can also buy shares of Brookfield Renewable Company (NYSE: BEPC), but its yield is less than 3%.

3. Innovative industrial properties

Innovative industrial properties (NYSE: IIPR) provides a way to earn regular income from another kind of green wave. It is a real estate investment trust (REIT) that focuses on the US medical cannabis industry. The IIP dividend is currently earning just over 3%.

In case you didn’t know, the medical cannabis market in the United States is booming. The third quarter results of IIP show it: the company recorded revenue that almost tripled year over year. Its funds from Adjusted Operations (a superior measure of profitability for REITs) also nearly tripled.

The IIP business model is simple. The company purchases properties from medical cannabis operators. He then rents these properties to operators. Both parties are winning, with IIP receiving solid recurring income and its tenants accessing much-needed capital.

You probably won’t have to worry about the drop in IIP’s dividend; it has grown 680% since 2017. IIP has properties in 16 states, but 19 other states where the company does not yet have a presence have legalized medical cannabis. This gives cannabis-focused REIT plenty of opportunities to continue to grow for a long time.