The stock market has been on fire over the past year, with the S&P 500 surging more than 25% and the Nasdaq’s value soaring by about 33%. However, at some point, the market will take a breather, leading to a potential sell-off. While this may cause concern for some investors, it can also present a great opportunity to buy high-quality companies at discounted prices.
Two companies that are likely to fall during the next market slump are NextEra Energy and Brookfield Infrastructure. These companies are known for their supercharged dividend growth and could be great investments during a market downturn.
NextEra Energy is a leader in clean energy and has seen significant growth in its earnings and dividends over the past decade. The company expects to continue delivering above-average dividend growth of roughly 10% annually through 2026, thanks to its strong demand for renewable energy.
Brookfield Infrastructure, on the other hand, is a world leader in infrastructure and operates utilities, midstream, transportation, and data assets. The company has a stellar track record of growing its earnings and dividends and expects to grow its funds from operations per share by more than 10% annually over the next several years.
Both companies offer above-average yields and have the potential to continue increasing their payouts in the future. This makes them great dividend stocks to buy during market sell-offs, as investors can lock in higher yields and position themselves to earn more dividend income in the future.
So, if you’re looking to take advantage of a potential stock market sell-off, consider adding NextEra Energy and Brookfield Infrastructure to your portfolio. These supercharged dividend stocks could provide strong total returns in the long run.
