Summary
If you're looking for safe dividend income, you should check out these three places first.
Quality utilities offer above-average yields with stable and healthy distribution growth.
Collect rent-like income from real estate companies.
Selective energy infrastructure companies generate predictable cash flows to grow their dividends.
Energy Infrastructure Companies
Energy infrastructures are essential for energy flows. Altagas Ltd [TSX:ALA](OTCPK:ATGFF) has a diversified portfolio of gas-utility, midstream, and power assets. Its shares are depressed because there's uncertainty surrounding its C$8.4 billion acquisition of WGL Holdings (NYSE:WGL), which would be a quality addition to Altagas.
If it succeeds, management aims to increase its dividend by 8-10% per year through 2021. In the meantime, investors can get started with a nearly 6.9% yield.
Then, there's Enbridge Inc. [TSX:ENB](NYSE:ENB) which has merged with Spectra Energy and is now the largest energy infrastructure company in North America. Enbridge aims to grow its dividend by 10-12% from 2017 to 2024 while maintaining a payout of 50-60% of available cash flow from operations. Investors can get started with a 4.2% yield today.