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3 High-Yield Dividend Stocks to Buy in September and Hold Forever

3 High-Yield Dividend Stocks to Buy in September and Hold Forever

Author:
foolstock
Published:
2025-09-16 21:06:00
13
3

Dividend Titans Defy Market Volatility—Here's Your September Shopping List

Forget chasing meme stocks—these three cash-generating machines deliver real returns while Wall Street plays musical chairs. They've weathered every market cycle from dot-com busts to crypto winters, paying shareholders through it all.

The Income Generators

Each pick boasts dividend yields that crush traditional savings accounts—we're talking 4-7% returns that compound while you sleep. They operate in recession-resistant sectors with pricing power that inflation can't touch.

Portfolio Anchors

These aren't speculative bets; they're foundational holdings that stabilize portfolios during downturns. Their cash flows fund dividends through economic cycles—no dividend cuts during the last three recessions.

Timing the Entry

September's seasonal weakness creates prime buying opportunities. Institutional tax harvesting and quarter-end rebalancing temporarily depress prices—smart money accumulates during these dips.

Hold Forever? Seriously?

Nothing lasts forever, but these companies have paid dividends for decades—through wars, crises, and yes, even that time your crypto portfolio dropped 80%. Sometimes boring beats exciting when funding retirement.

Rising rolls of $100 bills next to a rising red arrow.

Image source: Getty Images.

A well-defended dividend

Lockheed Martin's dividend yield of 2.8% is more than double that of the S&P 500. The defense contractor has increased its dividend for 22 straight years. That growth should continue.

The company generates lots of cash, with over $8.5 billion in operating cash FLOW expected this year. This cash lets the company invest in business growth ($1.9 billion in capital expenses), pay dividends (over $3 billion annually), and repurchase shares ($3 billion planned in 2025).

Lockheed's research and development investments drive innovation, helping it offer advanced defense technologies to meet its customers' evolving demands. For example, Lockheed is investing in emerging technologies needed for programs like the Golden Dome in America. These investments support future growth in cash Flow and dividends.

Pursuing powerful growth trends

Brookfield Infrastructure's dividend yields 4.3%. The global infrastructure operator has increased its payment every year since its formation in 2008, growing it at a 9% compound annual rate over that period. Brookfield plans to increase its dividend at a 5% to 9% annual rate in the coming years.

The company should have plenty of fuel to achieve its dividend growth outlook. Brookfield expects to grow its funds from operations (FFO) per share at a rate exceeding 10% annually in the coming years. Growth catalysts include inflation-driven rate increases, volume growth as the global economy expands, growth capital projects, and acquisitions.

Brookfield currently has nearly $8 billion of expansion projects in its backlog, including funding for two major U.S. semiconductor fabrication facilities and multiple data center development projects worldwide. The company has also made several recent acquisitions, including pipeline company Colonial, data infrastructure company Hotwire, andRail. Brookfield is focusing its investments to capitalize on global megatrends such as decarbonization, deglobalization, and digitalization to drive above-average growth for years to come.

Ample growth ahead

NextEra Energy currently offers a dividend yield of 3.2%. The utility has increased its dividend every year for more than three decades. It has grown the payout at a 10% compound annual rate over the past 20 years.

The energy company plans to grow its dividend by about 10% annually through at least next year, with strong growth prospects beyond that. The company expects its adjusted earnings per share to rise NEAR the top of its 6%-8% annual target range through 2027.

NextEra Energy should be able to continue growing at a strong rate well beyond that time frame. One catalyst is the expected surge in power demand over the coming decades, driven by the growth of AI data centers, the onshoring of manufacturing, and increased electrification. As a leader in low-carbon energy, NextEra Energy should capture a meaningful share of the anticipated growth in power demand in the coming years.

Durable dividend stocks

Lockheed Martin, Brookfield Infrastructure, and NextEra Energy each offer high-yield dividends backed by solid financials. They're also benefiting from enduring growth trends that position them to consistently raise their payouts. For investors seeking long-term, reliable passive income, these three stocks stand out as top buys this September.

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