Just Invest $800 In Each Of These 3 High-Yielding Dividend Stocks To Generate Over $100 In Passive Income Per Year

The Federal Reserve could start cutting interest rates this month — which could be great news for dividend stocks.

Over the past two years, high-yield certificates of deposit and savings accounts have become more attractive to income-seeking investors because of rising interest rates. But as yields begin to fall, investors will have more incentive to hold dividend stocks. And that’s not to mention the benefits that companies that often pay dividends could reap from lower rates. For capital-intensive companies that tend to carry a lot of debt on their balance sheets, lower interest rates can lower the cost of capital and make debt financing less expensive.

The rate cut should be welcome news for investors in the pipeline and energy infrastructure giant. Kinder Morgan (NYSE: KMI) and public services Dominion Energy (NYSE: D) And Southern Company (NYSE: SO). Investing $800 in each stock should generate over $100 per year in passive income. Here’s why these three companies are rock solid dividend stocks to buy now.

Kinder Morgan has taken steps to regain investor confidence

In December 2015, Kinder Morgan cut its dividend by 75% to preserve cash and address excessive debt. Nearly nine years later, Kinder Morgan has turned its business around by managing expenses and paying down debt.

The success model for a midstream oil and gas company like Kinder Morgan is to build valuable infrastructure projects that can generate stable cash flows for decades. Kinder Morgan’s pipelines serve as toll stations for exploration and production companies, while its terminals serve the storage, distribution, blending and logistics needs of petroleum products, chemicals and renewable fuels.

Kinder Morgan has made several reasonably sized acquisitions in recent years for its existing assets and to increase its exposure to liquefied natural gas and low-carbon fuels. Kinder Morgan also believes that natural gas will play a role in the growth of energy-intensive data centers, although the magnitude of that opportunity remains to be seen.

With a dividend that has been steadily increasing over the past few years and a yield of 5.3% at recent prices, Kinder Morgan can fuel your portfolio with passive income.

Discover the new Dominion Energy

Dominion Energy could beat the S&P 500 this year, but looking back, the stock has performed terribly over the medium term, losing 28% of its value over the past five years.

Much of that underperformance is attributable to a business model that used to be more complex. Dominion used to own oil and gas production assets, pipelines and utilities. But it has sold off much of that over the past five years to Berkshire Hathaway Energy and Enbridge. Today, Dominion is increasingly focused on its regulated electric utility assets.

The story continues

Dominion is concentrated in Virginia, West Virginia, North Carolina and South Carolina. These states are ripe for offshore wind energy opportunities, between coastal areas…