Investing in dividend-paying stocks, particularly those with a history of increasing their payouts, has historically proven to be a shrewd strategy for investors. Such stocks have consistently outperformed their non-dividend-paying counterparts over extended periods. This analysis focuses on three prominent examples: Brookfield Infrastructure, PepsiCo, and VICI Properties, all of which exhibit strong track records of dividend growth and possess compelling prospects for future increases. These companies represent sound investment opportunities for those looking to build a portfolio that generates steady income.
Report: Companies Maintaining and Growing Shareholder Returns
On September 22, 2025, investment analyst Matt DiLallo presented a detailed examination of three companies poised to continue their impressive dividend growth. These businesses, Brookfield Infrastructure, PepsiCo, and VICI Properties, have each established a robust history of rewarding shareholders with increasing dividends, making them attractive candidates for long-term investment.
Brookfield Infrastructure, a global operator of essential infrastructure assets, has consistently raised its dividend for 16 consecutive years since its inception. This consistent growth, averaging 9% annually, has resulted in a current dividend yield of 4.2%. The company's financial stability is underpinned by approximately 85% of its funds from operations (FFO) originating from long-term contracts or government-regulated rate structures, many of which are indexed to inflation. Brookfield allocates between 60% and 70% of its stable cash flow to dividends, retaining the remainder for strategic expansion projects. Management projects annual FFO per share growth of 6% to 9% from inflation-linked rate increases, volume expansion, and internal projects. Furthermore, acquisitions are expected to push FFO per share growth to over 10% annually, as evidenced by three recent deals totaling $1.3 billion this year. These factors collectively support anticipated dividend increases of 5% to 9% per year.
PepsiCo, a global powerhouse in beverages and snacks, boasts an even longer history of dividend increases, having raised its payout for 53 consecutive years. This remarkable achievement places it in the elite category of \"Dividend Kings.\" Over the past 15 years, PepsiCo has grown its dividend at a healthy compound annual rate of 7.5%, with a current yield of 4%. The company's long-term objectives include achieving organic revenue growth of 4% to 6% annually and high single-digit core earnings-per-share growth. PepsiCo strategically invests in product innovation, manufacturing capacity, digitalization, and logistics to sustain its growth. It has also proactively adapted to evolving consumer preferences by transitioning its portfolio towards healthier options, bolstered by recent acquisitions of brands like Poppi, Siete, and Sabra. These efforts are expected to fuel continued dividend growth.
VICI Properties, a real estate investment trust (REIT) specializing in experiential properties, has delivered eight consecutive years of dividend increases since its formation. This represents a 6.6% compound annual growth rate, significantly surpassing the 2.3% average of its industry peers. VICI's dividend currently yields an attractive 5.7%. The REIT's portfolio is secured by very long-term triple net leases, which ensure stable rental income as tenants are responsible for property operating costs such as maintenance, real estate taxes, and building insurance. A growing portion of its leases (42% this year, projected to reach 90% by 2035) includes inflation-linked rent escalations, ensuring a steadily rising income stream. VICI maintains a conservative dividend payout ratio of approximately 75% of its stable cash flow, allowing it to retain capital for further investments in income-generating experiential real estate. Recent investments include up to $510 million for the Mono Casino and Resort development in California and $450 million for a mezzanine loan supporting the One Beverly Hills luxury mixed-use project. VICI's increasing rents and active growth portfolio are expected to facilitate ongoing dividend increases.
In conclusion, Brookfield Infrastructure, PepsiCo, and VICI Properties stand out as compelling investment choices for those seeking dividend growth. Their robust cash flows, coupled with strategic expansion initiatives and commitment to returning value to shareholders, underscore their potential for sustained dividend payments and capital appreciation.
