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Bet Big on These 2 TSX Dividend Stocks for Unbeatable Income

The stock market has the potential to be a potent instrument for building wealth—but predicting its movements isn’t straightforward. While “buying low and selling high” seems uncomplicated conceptually, actually doing so demands expertise, know-how, along with a blend of perseverance and self-control. Above all else, investors must select businesses capable of increasing their value over the long term.

That’s why I like to concentrate on premium dividend stocks—particularly those with strong business models and steady income growth. Whenever the market pushes their prices down, I view it as a chance to buy. Two stocks listed on the TSX

dividend stocks

I would definitely invest more during downturns.

Brookfield Infrastructure Partners

(

TSX:BIP.UN

) and

Brookfield Asset Management

(

TSX:BAM

).

Brookfield Infrastructure Partners

Brookfield Infrastructure Partners L.P. is responsible for owning and operating critical infrastructure within the realms of utilities, transportation, energy, and data. This portfolio does not consist of high-risk investments; rather, these are tangible, regulated assets supported by extended contractual agreements that ensure steady, inflation-adjusted revenue streams.

Operating across more than 30 nations, Brookfield Infrastructure profits from worldwide developments such as digital growth (via data centers and fiber optics), the shift towards renewable energies (including natural gas pipelines), and increased urbanization (such as ports and toll roads).

At present, this partnership is generating approximately 5.2%. Over the past fifteen years, it has expanded its distributions with an impressive 9% compounded annual growth rate. This blend of attributes—high current returns coupled with steady increases—is uncommon. Should BIP.UN drop to $41 or below, which would elevate the yield close to 6%, I’d consider significantly increasing my position.

In a landscape marked by increasing interest rates and volatile markets, BIP’s inflation-adjusted earnings alongside its worldwide diversity provide income seekers with both reliability and potential for growth.

Brookfield Asset Management

Brookfield Asset Management serves as the fee-driven powerhouse overseeing one of the globe’s biggest collections of alternative assets. The company handles more than US$1 trillion on behalf of institutional clients encompassing areas such as infrastructure, real estate, renewable energy, and private equity.

Unlike BIP, BAM doesn’t own the assets—it generates management and performance fees from them. This approach allows BAM to be capital-light and highly scalable. As the assets under its management increase, so too do its fee-related earnings—and consequently, its dividend grows as well.

BAM distinguishes itself as an exceptional find, providing a respectable current dividend yield along with significant future dividend growth prospects. Although its present yield sits at approximately 3%, BAM is actively increasing its payouts. The management aims for a yearly dividend boost of 15-20 percent and recently hiked the dividend by 15.1% in February.

Each time this stock drops by 10% or more, I view it as an opportunity to acquire a company with substantial long-term growth potential.

How do these two complement each other so effectively?

Both firms are integral parts of the larger ecosystem.

Brookfield Corporation

The ecosystem operates with BAM as the asset manager, supporting BIP—a key investment tool. This partnership ensures coherence in objectives, funding, and implementation—reflecting positively in their sustained success metrics.

In the past ten years, BIP has increased investors’ returns threefold, whereas since BAM separated from Brookfield in December 2022, it has multiplied investors’ returns twofold.

The Foolish investor takeaway

Brookfield Infrastructure Partners and Brookfield Asset Management stand out as some of the most reliable dividend-paying stocks listed on the Toronto Stock Exchange (TSX). These companies provide consistent payouts, substantial growth prospects, and access to international physical assets, thereby offering an exceptional combination of yield and robustness. Should this

The market provides you with a retracement.

These are the types of stocks that warrant increased investment.

The post

I’d Definitely Invest in These 2 TSX Dividend Stocks for Their Earning Prospects

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Fool contributor

Kay Ng

holds stakes in Brookfield Infrastructure Partners. The Motley Fool owns shares of and advocates for investing in Brookfield. The Motley Fool also suggests buying shares of Brookfield Corporation and Brookfield Infrastructure Partners. Furthermore, The Motley Fool supports an investment in Brookfield.

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