3 High Dividend Stocks to Buy in June to Protect Your Portfolio from Future Storms

The stock market has been on a roll over the past year, hitting several new all-time highs. This could make it easy to forget the difficult times of the past.

Unfortunately, the market will eventually weather more storms in the future. For this reason, investors should look for ways to protect their portfolios in anticipation of future downturns. Enterprise Product Partners (NYSE:EPD), Brookfield Infrastructure (NYSE:BIP)(NYSE:BIPC)And Brookfield Renewable Energy (NYSE:BEP) (NYSE:BEPC) stand out from a few Fool.com contributors for their resilient dividends. Here’s why they think investors should buy these high-quality products, high dividend stocks before the next market downturn to add a safety net to their portfolio.

The world needs business

Ruben Gregg Brewer (Enterprise Product Partners): The key story for Enterprise Products Partners is that it owns a large set of energy infrastructure in North America. The list of assets includes pipelines, storage, transportation and processing facilities. The midstream sector essentially connects the upstream (production) of the energy sector to the downstream (chemicals and refining) and to the rest of the world. The North American energy sector would not function without companies like Enterprise.

The bottom line for investors, however, is that Enterprise is basically just a toll taker, charging fees for the use of its vital energy infrastructure. Thus, the demand for energy is greater than the price of raw materials flowing through the master limited partnership (MLP) system. As energy is the lifeblood of the modern world, demand tends to remain robust even when energy prices are low or economic activity slows. This is how Enterprise has managed to increase its distributions for 25 consecutive years despite the volatility inherent in energy prices.

Now add in an investment grade balance sheet and the fact that distributable cash flow covers the distribution by 1.7 times. There is plenty of room for bad news here before a reduction in distributions is considered. And here’s the best part: the distribution yield is a whopping 7.2%. Of course, yield will likely account for the lion’s share of investors’ returns, but if you’re trying to maximize the income your portfolio generates (in both good and bad markets), this shouldn’t be a problem for you.

Built for durability

Matt DiLallo (Brookfield Infrastructure): Brookfield Infrastructure produces very stable cash flows. The company operates a globally diversified portfolio of critical infrastructure businesses. Around 90% of its cash flow comes from long-term contracts or regulated frameworks with an average remaining life of 10 years. Meanwhile, 70% of its cash flow has no volume or price exposure, while another 20% only has volume risk. Finally, 85% of its income is either indexed has or protected from inflation. These features help protect Brookfield’s profits from future storms.

The story continues

The company is further strengthening its activities from…