Latest news with #Enbridge
Yahoo
23 minutes ago
- Business
- Yahoo
Here Are My Top 3 High-Yield Energy Dividend Stocks to Buy Now
Chevron, Enterprise Products Partners, and Enbridge all have above-average yields. All three have strong business models that have supported regular dividend increases. Each of these companies has been awarded top-tier scores for financial strength. 10 stocks we like better than Chevron › If you are a dividend lover like I am, then you care a lot about finding stocks with big yields backed by growing dividends. That's what you'll get with Chevron (NYSE: CVX), Enterprise Products Partners (NYSE: EPD), and Enbridge (NYSE: ENB). However, there's more to understand about a company than just its yield and dividend history. Here's why these three are my top high-yield dividend stocks in the energy sector right now. Before getting into the deeper story, a first cut look at dividends is still important. Enterprise, which is a midstream master limited partnership (MLP), has increased its distribution every single year for 26 consecutive years. Enbridge, a Canadian midstream giant, has increased its dividend (in Canadian dollars) every year for three decades. And Chevron, a globally diversified integrated energy company, has increased its dividend annually for 38 years and counting. Those are all impressive records, but they have to be couched in a very important fact. The energy sector is broadly known for being volatile because oil and natural gas prices are volatile. In other words, this trio has defied the odds when it comes to their ability to reward investors with a steadily growing income stream. And right now, they are each offering something else, too: an above-average yield. The S&P 500 index is yielding roughly 1.2%. The average energy stock is yielding about 3.5%. Chevron's dividend yield is currently around 4.6%, Enbridge's yield is 5.9%, and Enterprise is yielding 6.8%. So you get outstanding dividend histories and outstanding yields if you buy these three energy giants right now. Clearly, there are good reasons to be looking at Chevron, Enterprise, and Enbridge as income investments. But the dividend headlines aren't the whole show. The businesses that back those dividends are just as important, if not more so. For example, Chevron's diversification across the entire energy value chain helps to reduce the impact of energy price volatility. Its chemicals and refining businesses, as a highlight, tend to benefit when oil prices are low, which is a headwind for its energy production operations. Chevron also benefits from consistent cash flows produced by its pipeline operations. Toll-driven pipeline assets are what back midstream operators Enterprise and Enbridge. Slow and steady is the name of the game in the midstream sector, with growth coming from capital investments, price increases, and the occasional acquisition. That said, Enbridge stands out because it has a bit more diversification than Enterprise, with regulated natural gas utility assets and investments in clean energy. The big picture here is that all three have business models built to withstand the typical ups and downs in the energy sector. And there's one more key factor to consider. Chevron, Enbridge, and Enterprise all have investment-grade-rated balance sheets. That means they have a solid financial foundation to lean on when adversity comes along, which will help them to support both their businesses and their dividends through the hard times. That's particularly important for Chevron, which has the most exposure to volatile energy prices. Chevron and Enterprise are financially strong and high-yield energy stocks with great dividend stories to tell. I don't own them. I own Enbridge and TotalEnergies because both of these energy businesses have made material efforts to diversify their businesses to include clean energy. TotalEnergies doesn't make this dividend-focused list because it just doesn't have the same dividend track record as Chevron. If dividends are your primary focus, Chevron will probably be a better choice for your income portfolio. But each member of this trio -- Chevron, Enterprise, and Enbridge -- stands out as a financially strong, high-yield dividend option in the energy space right now. Before you buy stock in Chevron, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Chevron wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Reuben Gregg Brewer has positions in Enbridge and TotalEnergies. The Motley Fool has positions in and recommends Chevron and Enbridge. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy. Here Are My Top 3 High-Yield Energy Dividend Stocks to Buy Now was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
10 hours ago
- Business
- Yahoo
Making Your $25,000 TFSA Investment Work Harder for the Long Term
Written by Andrew Walker at The Motley Fool Canada Canadians are using their Tax-Free Savings Account (TFSA) to build portfolios of investments that can provide income and complement government and company pensions in retirement. With stock markets at record highs and economic uncertainty on the horizon, investors are wondering where to invest their TFSA savings. Owning dividend stocks comes with risk. The share price can fall below the price paid for the stock and companies sometimes cut their dividends to preserve cash during difficult financial times. The upside, however, is that many stocks raise their dividends at a steady pace. Each time the dividend increases, the yield on the initial investment also rises. Stocks that raise dividends regularly also tend to move higher over the long term. This provides capital gains that can be tapped at some point. Stocks provide good liquidity, as they can be sold to access the funds in the case of an emergency or for making a large purchase. In the current environment, it makes sense to look for stocks that have steady revenue streams in all economic conditions and can support ongoing dividend growth. Enbridge (TSX:ENB) is a giant in the energy infrastructure sector with a current market capitalization of $134 billion. The company has the financial clout to make large acquisitions and can access capital for its organic development program. Enbridge spent US$14 billion in 2024 to buy three American natural gas utilities. The deals made Enbridge the largest natural gas utility operator in North America. Enbridge is also working on a $28 billion capital program that will drive steady earnings and cash flow growth over the next few years. This should lead to ongoing annual dividend increases. Enbridge raised the dividend in each of the past 30 years. Investors who buy ENB stock at the current price can get a dividend yield of 6.1%. Enbridge is off its recent highs, so investors have a chance to buy the stock on a small dip. Fortis (TSX:FTS) is another good dividend-growth stock to consider. The board has increased the distribution for 51 consecutive years and plans to raise the dividend by 4% to 6% annually through 2029. Revenue and profit growth will come from the current $26 billion capital program. Fortis gets most of its revenue from rate-regulated utilities. These include natural gas distribution utilities, power generation facilities, and electricity transmission networks. Investors who buy FTS stock at the current price can get a dividend yield of 3.8%. Guaranteed Investment Certificates (GICs) provide capital protection while still delivering decent returns. GIC rates are not as high as they were in the fall of 2023 when they soared as high as 6%, but investors can still get non-cashable GICs offering more than 3.5%, depending on the issuer and the term. This is above inflation, so it is worth considering for a TFSA portfolio focused on generating income. The right mix of dividend stocks and GICs for a $25,000 portfolio is different for each investor depending on a person's risk tolerance, need for access to the capital, and the desired returns. In the current market conditions, it is possible to build a diversified portfolio of GICs and good dividend stocks to get an average yield of 4.5%. This strategy reduces risk and generates decent income, while still providing opportunity for capital growth. The post Making Your $25,000 TFSA Investment Work Harder for the Long Term appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Andrew Walker has no position in any stock mentioned. The Motley Fool recommends Enbridge and Fortis. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Hill
18 hours ago
- Business
- The Hill
Oil and gas lawsuits are threatening Trump's energy agenda
Energy has been a highlight of the Trump 2.0 presidency. But the administration needs more cooperation from Lansing and Baton Rouge to bring its ambitious goals to fruition. Michigan and Louisiana may not have a lot in common, but there are few places in the U.S. more critical to the Trump administration's energy agenda. Michigan, an industrial powerhouse, needs abundant affordable energy to fuel the 'manufacturing boom' that the White House is promising. Louisiana, a leading liquid natural gas exporter, is key to Team Trump's goal to make the U.S. the signature supplier of energy to domestic industries and foreign allies. Yet politicized lawsuits against oil and gas companies are proliferating in both states, backed by rivals and fair weather friends whose lawfare crusades are undercutting President Trump's energy dominance agenda. For Michigan's Democratic Gov. Gretchen Whitmer and Louisiana's Republican Gov. Jeff Landry, it's time to decide whether to get behind America First energy policies or side with powerful forces within their states that are pushing in the opposite direction. Whitmer, widely viewed as a 2028 Democratic presidential hopeful, nonetheless quotes Trump's call for a 'golden age of American manufacturing.' During her tenure as governor, Michigan has leaned into aspirational net-zero timelines, discouraged in-state gas production and created roadblocks to energy infrastructure. But there's also the legal offensive. Michigan's Attorney General Dana Nessel (D) continues to defend her six year-old lawsuit to shut down Enbridge's Line 5 pipeline, which supplies more than half of Michigan propane use, while she taps contingency lawyers to sue oil and gas companies for far-flung climate-related damages. That's not the posture of a state preparing to power an industrial renaissance. Meanwhile, Landry touts Trump's energy dominance agenda, yet at the same time supports dubious claims against oil and gas companies in his state. As state attorney general, Landry entered a joint prosecution agreement with trial lawyers seeking to hold the oil and gas industry liable for 2,000 square miles of Louisiana wetlands and barrier islands lost to coastal erosion since the 1930s. As governor, he has taken in more campaign contributions from trial lawyers than his Democratic predecessor. The support has paid dividends. A lawyer from the Landry administration backed up the trial lawyers who recently won a $744.6 million verdict against Chevron in a coastal erosion case. Although research shows that leveeing of the Mississippi is the main culprit, oil and gas companies are now defending 43 lawsuits in Louisiana blaming them for coastal land loss. Despite the obvious federal issues at play, the trial lawyers behind the cases are trying to keep the litigation in friendly state courts — precisely the kind of jurisdictional charade that Trump's order against state interference with American energy dominance was designed to prevent. Just this week, the United States Supreme Court agreed to review whether these cases belong in federal court where the oil and gas companies can get a fair hearing. If Landry and the trial lawyers dodge federal jurisdiction, it will be 'pay, baby, pay,' not 'drill baby drill' for oil and gas companies — much to the chagrin of the Trump administration and the detriment of the nation's energy consumers. Unless Team Trump follows through on its promise to defend domestic energy producers from state overreach, U.S. energy dominance will remain elusive. Taking on deep blue states over their climate lawfare is a solid first step, but it's not enough. The next time that Whitmer visits the Oval Office, Trump should remind her that Michigan consumes almost five times more energy than it produces. If the manufacturing golden age returns to Michigan, the demand side of that equation will only rise. The state's leadership needs to bury its green utopianism, drop its anti-pipeline crusade, and start producing more reliable and affordable energy needed to power autonomous vehicles, chip fabs, AI data centers and other industries that Whitmer is trying to attract. Likewise, Team Trump needs to tell Landry to put the energy dominance agenda ahead of his alliance with powerful trial lawyers. If Landry is unwilling to pull out of the retroactive cases against oil and gas companies, the Trump Department of Justice should intervene and defend federal energy policy interests against Louisiana's egregious overreach. For Louisiana's liquefied natural gas sector to propel U.S. energy dominance in the future, the state needs a predictable legal system, not one where industry is at the mercy of politically-connected trial lawyers. The key to the Trump administration's early energy successes has been the rollback of federal rules like the Biden administration ban on liquefied natural gas exports. Unleashing American energy over the long term, however, requires the states to push in the same direction. For states like Michigan and Louisiana, that doesn't require a new vision. It means having the political courage to make it real. Michael Toth is a practicing lawyer and a research fellow at the Civitas Institute at the University of Texas at Austin.
Globe and Mail
19 hours ago
- Business
- Globe and Mail
Enbridge's Dividend Payment: A 30-Year Promise That Keeps Paying
Enbridge Inc. ENB, a leading midstream energy player in North America, has a strong track record of returning capital to shareholders through dividend payments. For 30 consecutive years, the midstream energy giant has increased its dividends to reward shareholders, earning a prestigious position among the few dividend aristocrats in the energy space. Unlike most energy companies, which are susceptible to oil and gas price volatility, Enbridge is consistently rewarding shareholders. This reflects a solid business model with predictable cash flows. This steady income allows ENB, which operates an extensive crude oil and liquids transportation network spanning 18,085 miles, to return a portion of its earnings to shareholders through regular dividend payments, even during volatile market conditions. Underscoring the strength of ENB's midstream operations, its pipelines transport 20% of the total natural gas consumed in the United States. Looking ahead, Enbridge believes it could achieve approximately 5% annual business growth through the end of 2030. This solidifies ENB's strong business outlook, thereby securing incremental cash flows. Thus, long-term shareholders can expect steady and handsome dividends from the midstream major. Are KMI & WMB Also Rewarding Investors Handsomely? Kinder Morgan KMI and Williams WMB are also leading midstream energy players, thereby are less vulnerable to oil and gas price volatility. Despite their stable business models, both KMI and WMB currently reward investors with lower dividend yields than the industry's composite stocks. Kinder Morgan's current dividend yield is 4.24%, lower than the industry's 5.24% yield. Williams' current dividend yield is 3.38%. ENB's Price Performance, Valuation & Estimates Shares of Enbridge have gained 38% over the past year, outpacing the 35.1% rally of the composite stocks belonging to the industry. From a valuation standpoint, ENB trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 15.04X. This is above the broader industry average of 13.89X. The Zacks Consensus Estimate for ENB's 2025 earnings hasn't been revised over the past seven days. ENB currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Williams Companies, Inc. (The) (WMB): Free Stock Analysis Report Enbridge Inc (ENB): Free Stock Analysis Report Kinder Morgan, Inc. (KMI): Free Stock Analysis Report
Yahoo
a day ago
- Business
- Yahoo
3 Top Stocks to Buy With $7,000 and Hold for Decades in Your TFSA
Written by Andrew Walker at The Motley Fool Canada With the TSX trading near its record high, investors are wondering which top Canadian dividend stocks might still be good to buy right now for a self-directed Tax-Free Savings Account (TFSA) focused on passive income and total returns. Fortis (TSX:FTS) doesn't offer a high dividend yield, but the dividend-growth outlook and the reliability of the revenue and cash flow make the utility company hard to beat when it comes to finding a solid stock to own for income and long-term capital gains. Fortis owns $75 billion in utility assets spread out across Canada, the United States, and the Caribbean. The businesses include power generation facilities, electricity transmission networks, and natural gas distribution utilities. Companies and households need electricity and natural gas regardless of the state of the economy, so Fortis is a good stock to own during challenging economic conditions. Fortis grows through acquisitions and organic developments. The current $26 billion capital program is expected to raise the rate base from $39 billion in 2024 to $53 billion in 2029. As the new assets are completed and go into service, the increase in earnings should support planned annual dividend hikes of 4% to 6% over five years. Fortis raised the dividend in each of the past 51 years. Enbridge (TSX:ENB) is also a player in the natural gas distribution sector. In fact, its US$14 billion purchase of three natural gas utilities in the United States in 2024 made Enbridge the largest operator of natural gas utilities in North America. These assets, when combined with Enbridge's extensive natural gas transmission and storage assets in Canada and the United States, position the business to benefit from the anticipated surge in natural gas demand in the coming years. Gas-fired power generation plants are being built to supply electricity to hundreds of new AI data centres. Enbridge's oil pipeline infrastructure and oil export terminal remain strategically important for Canada and the United States. Enbridge's network moves about 30% of the oil produced in the two countries. Investors received a dividend increase in each of the past 30 years. The current $28 billion capital program should support ongoing dividend growth. Investors who buy ENB stock at the current price can get a dividend yield of 6%. Bank of Nova Scotia (TSX:BNS) is arguably a contrarian pick in the Canadian bank sector. The stock has underperformed its large peers for several years, but a new CEO is driving a turnaround plan designed to improve investor returns. The bank is shifting its growth focus away from Latin America to the United States and Canada. Bank of Nova Scotia spent US$2.8 billion in 2024 to buy a 14.9% stake in KeyCorp, an American regional bank. The deal gives Bank of Nova Scotia a platform to expand its U.S. presence. Earlier this year, the Bank of Nova Scotia sold its businesses in Colombia, Costa Rica, and Panama. It still has large operations in Mexico, Chile, and Peru. Investors will need to be patient, but the stock should be attractive at the current price, and you get paid a solid 5.9% dividend yield to wait for the transition plan to deliver results. Fortis, Enbridge, and Bank of Nova Scotia pay attractive dividends that should continue to grow. If you have some cash to put to work in a TFSA focused on dividend income, these stocks deserve to be on your radar. The post 3 Top Stocks to Buy With $7,000 and Hold for Decades in Your TFSA appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Andrew Walker has no position in any stock mentioned. The Motley Fool recommends Bank of Nova Scotia, Enbridge, and Fortis. The Motley Fool has a disclosure policy. 2025 Sign in to access your portfolio
