3 Dividend Stocks Worth Doubling Down On Now

Investors looking for dividend stocks to buy often stop at a high dividend yield. A good dividend stock, however, may not pay a lot of money, but it can pay consistently—and even better, pay more over time. That’s the only real way to make money from dividend stocks. And once you understand the importance of dividend stability and growth, choosing the right stocks to buy becomes a lot easier. For example, few dividend stocks look so compelling that you’d want to double them right now. Here are three to get you started.

Big growth plans to increase dividends

My top stock picks for income investors are: NextEra Energy (FROM HOME 2.62%). It’s a dividend powerhouse, with a growing payout year after year, supported by earnings growth. Of course, NextEra Energy’s incredible position in two major industries helps.

NextEra Energy owns and operates the largest utility in the U.S., Florida Power & Light Company (FPL). It is also the largest producer of wind and solar energy and a leading player in energy storage. So while its utilities business generates stable earnings and cash flow, clean energy is the company’s growth engine. Together, these two businesses enable NextEra Energy to pay steady and growing dividends — it has increased its dividend at a compound annual growth rate (CAGR) of nearly 10% over the past 20 years, driven by approximately 9% growth in adjusted earnings per share (EPS).

NextEra Energy expects adjusted EPS growth of 6% to 8% through 2027 and believes it should be able to increase its annual dividend by about 10% through 2026. The company plans to pump $65 billion to $70 billion into its renewables business alone over the next four years, and that’s where its earnings and dividend growth should come from. So even if NextEra Energy’s 2.8% stock yield doesn’t appeal to you, the stock’s regular dividend increases could still provide a hefty boost.

The Reliable Dividend King

You might be surprised to see an industrial stock yielding 1.2% on the list of dividend stocks that could double, but you’ll be even more surprised to learn just how amazing a dividend stock it is Parker-Hannifin (VP) -4.74%) is. Parker-Hannifin is the Dividend King with a 68-year history of annual dividend increases. Its dividend also grew at an impressive CAGR of 14% between 2019 and 2024. This is one of the strongest dividend profiles I’ve seen in some time.

What is the key to Parker-Hannifin’s dividend performance? Parker-Hannifin is a leader in motion and control technologies, producing a wide range of hydraulic, filtration, pneumatic and other products. Its primary market is aerospace and defense, but it also serves customers in transportation, industrial equipment, off-highway vehicles and energy. Parker-Hannifin has grown steadily in recent years through acquisitions and an increased focus on longer-life products that will follow secular trends such as electrification and digitalization.

PH data by YCharts

Parker-Hannifin stock is up more than 200% over the past five years. Here’s why the stock is still a great buy: The company expects to grow its free cash flow by 50% and double its dividend over the next five years. That should mean bigger dividends for shareholders year after year, which should also be reflected in the stock price.

Fear in the market is a buy signal

In its latest letter to shareholders: Brookfield Renewables (BEPC -1.21%) (BEP -0.62%) called itself “a key enabler of one of the most important growth trends in recent history.” He was referring to digitization, artificial intelligence, and cloud computing. No, Brookfield Renewable is not a technology company — it’s a renewable energy company.

The point is that demand for sustainable electricity, and therefore clean energy, is expected to grow with global digitalization and the expansion of data centers. Brookfield Renewable is expected to be a key beneficiary, as it is one of the world’s largest publicly traded renewable energy companies, and nearly 40% of its development projects are outside the U.S., spread across Europe, Asia-Pacific, and South America. The company recently signed a landmark agreement with tech giant Microsoft deliver more than 10.5 gigawatts of new renewable energy capacity between 2026 and 2030 for its cloud services.

In short, Brookfield Renewable has a huge growth opportunity. The company is already growing steadily, with its funds from operations (FFO) per unit growing at a CAGR of 12% from 2016 to 2023, and its dividend growing at a CAGR of 6% over the past few decades. This dividend growth has left patient investors with a lot of money in the stock.

BEP data by YCharts

Brookfield Renewable expects to invest $7 billion to $8 billion in growth over the next five years and is targeting at least 10% annual FFO and 5% to 9% dividend growth through 2028. Combine that with a yield of 5% or more, and Brookfield Renewable stock could deliver double-digit annual returns. It’s a good time to buy, considering that both the corporation’s and the partnership’s stock have fallen by double digits over the past year or more. However, U.S. investors may want to buy corporate stock to avoid filing a K-1 tax form and withholding foreign taxes.

Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Brookfield Renewable, Microsoft, and NextEra Energy. The Motley Fool recommends Brookfield Renewable Partners and recommends the following options: long January 2026 $395 call options on Microsoft and short January 2026 $405 call options on Microsoft. The Motley Fool has a disclosure policy.