Energy Demand on the Rise: 3 Dividend Stocks to Power Your Portfolio
The world’s energy needs are growing, and fast. By 2050, global energy demand is expected to surge by 15%. While renewable energy sources like wind and solar will play a crucial role in meeting this demand, they won’t be enough to power the world on their own. That’s why fossil fuels will continue to be a vital part of the energy mix for at least the next decade.
Energy Infrastructure Companies: The Key to Unlocking Growth
This trend bodes well for energy infrastructure companies, which will be responsible for transporting, processing, and storing the fuels that power our homes, cars, and industries. With their ability to generate stable cash flows and pay out consistent dividends, these companies are an attractive option for income-seeking investors.
Three Ultra-High-Yield Dividend Stocks to Consider
We’ve identified three energy infrastructure companies that stand out from the pack: Energy Transfer (NYSE: ET), Enterprise Products Partners (NYSE: EPD), and Enbridge (NYSE: ENB). These industry leaders have a proven track record of generating strong cash flows and paying out high-yielding dividends.
Energy Transfer: A Leader in the U.S. Energy Midstream Industry
Energy Transfer is a master limited partnership (MLP) with a nationwide footprint of pipelines, processing plants, storage terminals, and export facilities. The company generates stable cash flows backed by long-term contracts and government-regulated rate structures. With a yield of nearly 8%, Energy Transfer’s dividend is an attractive option for income-seeking investors.
Enterprise Products Partners: A Consistent Performer
Enterprise Products Partners is another leading MLP with a remarkable record of consistency. The company has increased its distribution payment for 26 straight years and currently yields more than 7%. With a low payout ratio and a strong balance sheet, Enterprise Products Partners has the financial flexibility to continue investing in its operations while increasing its distribution.
Enbridge: A North American Energy Infrastructure Leader
Enbridge is a Canadian company that operates pipelines and utility businesses that generate stable and growing cash flow. With a yield of over 6%, Enbridge’s dividend is an attractive option for income-seeking investors. The company has a massive backlog of commercially secured expansion projects, including oil pipeline expansions, new natural gas pipelines, and renewable energy projects.
A Decade of Growth Ahead
The world’s growing energy needs will fuel growth for energy infrastructure companies like Energy Transfer, Enterprise Products Partners, and Enbridge. With their large, expanding backlogs of projects, these companies have increasing visibility into their future growth prospects. Their high-yielding dividends and visible growth make them great income stocks to buy and hold for the next decade.
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