3 Phenomenal Dividend Stocks to Buy Before It’s Too Late

The stock market has hit several new all-time highs this year. As a result, most stocks are up sharply, leaving fewer bargains.

There are, however, a few stocks that still appear to be bargains. American Water Works (NYSE: AWK), Enbridge (NYSE: ENB)And Clearway Energy (NYSE: CWEN)(NYSE: CWEN.A) The three Fool.com contributors are currently standing out because of their compelling investment potential. However, that may not last, which is why investors may want to pick up these phenomenal stocks dividend stocks before it’s too late.

A powerful dividend growth stock

Neha Chamaria (American Water Authority): American Water Works’ stock yield is just over 2%. This dividend yield may disappoint income-seeking investors, but even low-yielding stocks can be great investments if they pay consistent, growing dividends backed by earnings growth and cash flow. You might be surprised to learn that with dividends reinvested, American Water Works stock has more than tripled investors’ money in just 10 years!

That’s how powerful dividend growth stocks can be. And, given that American Water Works stock has posted flat year-over-year performance as of this writing, you might want to buy a few shares before it’s too late. After all, its stable business model and attractive long-term financial goals are too compelling to ignore.

American Water Works has been around for over 135 years and is now the largest regulated water and wastewater utility in North America, serving nearly 14 million people in 14 states and 18 military installations. As a regulated company, American Water Works can generate stable and predictable cash flow. And to grow its cash flow, it simply needs to invest regularly in its infrastructure to get approval for rate increases while seizing acquisition opportunities along the way. For example, the utility plans to invest $3.1 billion in infrastructure improvements this year and has nearly $483 million in pending acquisitions.

Building on steady growth and acquisitions, American Water Works expects to grow its earnings per share (EPS) at a compound annual growth rate of 7% to 9% over the long term. And the best part: The water stock also aims to grow its dividend in line with EPS, by 7% to 9% per share each year. That’s solid dividend growth, and coming from a utility, it should be safe and profitable.

Enbridge provides the energy needed

Reuben Gregg Brewer (Enbridge): Enbridge is usually categorized as a midstream company. That’s fitting since 75% of its earnings before interest, taxes, depreciation, and amortization (EBITDA) comes from oil and gas pipelines. However, that doesn’t really do the company justice, since Enbridge’s goal is to provide the world with the energy it needs.

In fact, the remaining 25% of EBITDA comes from natural gas utilities (22%) and renewables (3%). Natural gas is expected to be a transition fuel as the world moves away from dirtier forms of energy, such as…