3 great dividend-paying stocks to buy in September

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Any time is a good time to buy high dividend stocks. They literally pay you to own them. Over the long term, you can get huge returns by investing in the right dividend-paying stocks.

What should you look for? An attractive dividend yield is essential. A business model that allows the company to maintain the flow of dividends (and hopefully grow) is high on the list. It also helps if the business has strong growth prospects. Here are three great dividend-paying stocks to buy in September that tick all those boxes.

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1. Brookfield Renewable Power

I suspect that almost all investors would be happy with Brookfield Powerit’s (NYSE:BEP) (NYSE: BEPC) dividend yield. In fact, it is more accurate to use the plural version of the word — yields. Brookfield Renewable is a company but owns two shares.

Brookfield Renewable Partners is a limited partnership with a dividend yield of 4.1%. Brookfield Renewable Corporation was formed earlier this year to provide investors with an alternative that was not a limited partnership. It pays the same dividend as its sibling LP but yields 3.2% due to a difference in share prices.

As its name suggests, Brookfield Renewable focuses on renewable energy. The company owns hydroelectric, solar and wind power generation facilities as well as energy storage facilities. It is geographically diverse, with operations in North America, South America, Europe and Asia.

Renewable energy is definitely here to stay, which makes Brookfield Renewable’s business model about as stable as it gets. The company also has strong growth prospects with a development pipeline that will deliver nearly as much energy capacity as it currently claims.

2. Innovative industrial properties

Innovative industrial properties (NYSE: IIPR) ranks as a dividend lover’s dream. It offers a dividend yield of 3.4%. IIP has increased its dividend by more than 600% over the past three years. Its shares also rose by about the same amount during the period.

You might think the cannabis industry would be the last place to find a reliable dividend stock. But IIP’s business model works very well. The company buys properties from medical cannabis operators and then leases them to its customers. This gives IIP a stable revenue stream over a long period: the weighted average remaining lease term of the business is approximately 16 years.

IIP is organized as a real estate investment trust (REIT). This means that the company must distribute at least 90% of its taxable income to shareholders in the form of dividends. Its profits have grown at a rapid pace in recent years, driving its dividend higher and higher.

This growth looks set to continue. The US cannabis industry is still in its infancy. All IIP needs to do to keep winning is keep finding medical cannabis operators who want more money to fund their expansion. This shouldn’t be too difficult a challenge for the company.

3.Pfizer

Pfizer (NYSE: PFE) is a long-time favorite for investors looking for dividends. Its dividend yield currently stands at almost 4%. The drugmaker has also consistently increased its dividend over the past decade.

Of course, the pharmaceutical industry can be volatile. However, Pfizer has successfully navigated medical advances and regulatory changes since 1849. The company continues to invest heavily in research and development and commercial development agreements to ensure it remains among the leaders in industry.

The Big Pharma stock hasn’t seen impressive growth in recent years. Indeed, several of Pfizer’s best-selling drugs have lost patent exclusivity and experienced a significant drop in sales. But the company will soon divest its Upjohn unit (which houses these older drugs) and merge it with Mylan. This will set the stage for Pfizer’s growth to increase significantly.

Don’t worry, though: Pfizer’s dividend will still be strong. And investors will receive shares in the new entity, Viatris, which will be formed with the merger of Upjohn and Mylan, which will also pay a dividend. The combined dividend of the “new” Pfizer and Viatris should be close to the current Pfizer dividend.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a high-end advice service Motley Fool. We are heterogeneous! Challenging an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and wealthier.

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