Dividend stocks can be fantastic investments. Over the last five decades, dividend payers outperformed the average S&P 500 member (9.2% annualized total return compared to 7.7%). However, the best returns have come from dividend growers (10.2% annualized).

Black Hills (NYSE: BKH), Phillips 66 (NYSE: PSX), and Clearway Energy (NYSE: CWEN)(NYSE: CWEN.A) are under-the-radar dividend stocks. However, they stand out to a few Fool.com contributors for their higher yields and ability to increase payouts. That's one of the many factors that make them great dividend stocks to buy for a potential lifetime of dividend income.

Black Hills is the little engine that could

Reuben Gregg Brewer (Black Hills): When it comes to utilities, most investors have probably heard of giants like NextEra Energy and Southern Company. But with a market cap of just under $4 billion, Black Hills is itty bitty. And yet, it has achieved a feat neither NextEra nor Southern has: Black Hills is a Dividend King.

Black Hills is a regulated electric and natural gas utility that serves 1.3 million customers in parts of Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. Its business is pretty boring, but the regions it serves have seen customer growth nearly 3 times the rate of U.S. population growth. So, despite the company being on the small side, it serves relatively attractive regions.

It also has material expectations for growth, with a five-year capital investment plan worth around $4.3 billion, projected to support 4% to 6% earnings growth, with dividends growing at roughly the same pace.

While that might not be exciting on the surface, you have to add in the 4.5% dividend yield. That yield happens to be near the high end of the yield range over the past decade, suggesting the stock is on sale. But if the dividend grows in line with earnings, which will likely lead to a similar increase in the stock price to maintain the yield level, this boring Dividend King's return could quickly get up to 10% or so (4.5% yield + 5.5% growth = 10%). A market-like return from a boring utility stock? Well, that's actually not boring at all!

A high-octane, high-yield dividend stock

Matt DiLallo (Phillips 66): Phillips 66 tends to fly under the radar of most investors. While it offers a high dividend yield at 3.3%, it's not as high as other energy dividend stocks (though it is more than double the S&P 500's 1.3% yield). Its refining and logistics business isn't the most exciting in the world, either, especially amid the current transition to lower-carbon energy.

That causes many investors to miss out on this terrific dividend stock. Phillips 66 has grown its payout at a 16% compound annual rate since its spinoff from oil giant ConocoPhillips in 2012, including 10% earlier this year. It's in the process of returning $13 billion-$15 billion to shareholders through dividends and repurchases between mid-2022 and the end of this year.

The payout should continue growing. Despite returning substantial cash to shareholders, Phillips 66 is investing heavily in its future. It's spending $1.3 billion on organic growth projects this year. The company is balancing those investments between midstream projects to support the movement of hydrocarbons and lower-carbon projects, like the recently completed full conversion of its Rodeo Renewable Energy Complex. In addition, the company's chemicals joint venture, CPChem, is investing heavily in expanding its capacity.

Phillips 66 also continues to make accretive acquisitions. It bought Pinnacle Midstream for $550 million earlier this year to enhance its midstream business in the Midland basin. Last year, it spent $3.8 billion to buy most of DCP Midstream. These growth-focused investments should give it more fuel to grow its cash returns in the future.

Phillips 66 should continue to benefit from growing energy demand. It's also slowly shifting toward lower-carbon energy, which will enhance its long-term sustainability and growth prospects (including its ability to increase its dividend). These features make it an ideal dividend stock to own for the long haul.

This dividend growth stock deserves attention

Neha Chamaria (Clearway Energy): Utility stocks are often popular among income investors, but there's one high-yield stock that doesn't get much attention: Clearway Energy.

Clearway Energy is one of the largest renewable energy companies in the U.S. and prioritizes dividend stability and growth. The company has paid a regular dividend since going public in 2013 and increased its dividend every year until 2019, when it was forced to slash its payout to preserve cash flows after a large customer went bankrupt.

Clearway Energy, however, resumed dividend raises in 2020, proving its commitment to shareholders. Since Clearway Energy generates a majority of its revenue from long-term contracts, its cash flows are stable and predictable and can support regular and growing dividends.

Clearway Energy expects to increase its dividend by 7% this year and is confident in achieving the upper end of its annual dividend growth goal of 5% to 8% through 2026. The company sold its thermal assets in 2022 and is using the proceeds to expand and strengthen its renewables assets, which should boost its cash flows. It also has no significant debt maturing until 2028 and is already working on growth projects beyond 2026, which should give it further leeway to grow dividends every year.

With a high yield of 6.4% backed by dividend growth, Clearway Energy is one underrated dividend stock you'd want to consider buying.

Should you invest $1,000 in Phillips 66 right now?

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Matt DiLallo has positions in Clearway Energy, ConocoPhillips, NextEra Energy, and Phillips 66. Neha Chamaria has no position in any of the stocks mentioned. Reuben Gregg Brewer has positions in Black Hills and Southern Company. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool has a disclosure policy.

3 Underrated High-Yield Dividend Stocks to Buy Now and Hold Forever was originally published by The Motley Fool