Want Decades of Passive Income? 3 Stocks to Buy Now.
Passive income is probably what you want if you're trying to live off your nest egg in retirement. That means you'll be looking at dividend-paying stocks. Three that should be on your radar screen today are Black Hills (NYSE: BKH), Chevron (NYSE: CVX), and Enterprise Products Partners (NYSE: EPD). Here's why.
There's nothing exciting about Black Hills. And that's exactly why the stock, and its generous 4.8% dividend yield, are so interesting. For starters, the company is a regulated electric and natural gas utility. That means it has a monopoly in the markets it serves, but it has to get government approval for its rate increases and capital spending plans. Slow and steady growth is the best you can hope for. But given that it has achieved Dividend King status, slow and steady has worked out well for income investors over time.
But what about the future? On that score, Black Hills is kind of small, serving 1.3 million customers in parts of Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. But here's the exciting part: Customer growth in the areas it serves is nearly three times the rate of population growth in the United States. Customer growth supports capital investments in the utility sector, which supports rate increases. In other words, Black Hills' impressive dividend streak is likely to keep going.
Source Fool.com
