Core Insights - Utility stocks had been performing well in 2025 but have recently experienced a pullback, suggesting potential for a rebound in the sector Group 1: Brookfield Infrastructure - Brookfield Infrastructure operates globally with significant assets in utilities, including 3,500 kilometers of natural gas pipelines and 3,100 kilometers of electricity transmission lines [4][6] - The company has a market cap of $6.1 billion, with a current price of $46.33 and a dividend yield of 4.9% [5][6] - Brookfield Infrastructure's funds from operations (FFO) are diversified, with only 5% sensitive to oil and gas market conditions, indicating stability [6] Group 2: Enbridge - Enbridge operates an extensive pipeline network, transporting approximately 30% of North America's crude oil and 20% of the natural gas used in the U.S. [7][8] - The company has a market cap of $104 billion, with a current price of $47.55 and a forward dividend yield of 5.9% [9][10] - Enbridge has a strong track record of dividend increases, having raised its dividend for 30 consecutive years, and has $50 billion in visible growth opportunities through 2030 [11] Group 3: Evergy - Evergy operates in Kansas and Missouri, providing power and has outperformed both the S&P 500 and the utilities sector this year [12][13] - The company has a market cap of $17 billion, with a current price of $73.80 and a dividend yield of 3.8% [14][15] - Evergy is well-positioned for growth due to the construction of new data centers in its service areas, with management anticipating growth opportunities through 2030 and beyond [16]

Core Insights - Enbridge has consistently increased its cash flow and dividends over the past five years, establishing itself as a major player in North America's energy infrastructure sector [1][6] - The company transports approximately 30% of the continent's crude oil and nearly 20% of the natural gas consumed in the U.S., while also being a leading investor in renewable energy [1] Performance Overview - Over the past five years, Enbridge's stock has returned 39.9%, with a total return of 94.4% when including reinvested dividends, outperforming the S&P 500 in total return despite underperforming in stock price alone during the three- and five-year periods [4] - The current dividend yield stands at 5.8%, contributing significantly to the total return for investors [4][6] Growth Drivers - Enbridge has focused on expanding and diversifying its energy infrastructure through substantial investments in organic capital projects across its four core franchises: liquids pipelines, gas transmission, gas distribution, and power [6][7] - The company made a significant acquisition in 2023, purchasing three U.S. natural gas utilities from Dominion for $14 billion, which shifted its earnings mix and expanded its gas distribution platform [7] Earnings and Dividend Growth - Enbridge has achieved low-to-mid single-digit compound annual growth rates in earnings, cash flow per share, and dividends over the past five years, supported by its high-yielding and steadily increasing dividend [7][8] - The company has maintained a dividend growth streak of 31 consecutive years, which has been a key factor in its market-beating total return [7] Investment Strategy - Enbridge's strategy emphasizes steady growth rather than rapid expansion, allowing for consistent earnings growth and dividend increases, which has proven beneficial for investors over the past five years [8]

Core Viewpoint - The article emphasizes the importance of finding reliable high-yield stocks in the energy sector, specifically highlighting Enterprise Products Partners and Enbridge as strong investment choices due to their consistent dividend payments and solid business models [2][9]. Industry Overview - The energy sector is essential for modern life but is characterized by volatility due to fluctuating prices of oil and natural gas [3]. - The sector is divided into three segments: upstream (production), midstream (transportation and storage), and downstream (processing) [5]. - Midstream companies are less affected by commodity price fluctuations, focusing instead on the volume of energy transported [5]. Company Analysis - Enterprise Products Partners (EPD) has a market cap of $70 billion, a dividend yield of 6.71%, and has increased its distribution for 27 consecutive years, making it a reliable choice for conservative investors [8][9]. - Enbridge (ENB) has a market cap of $103 billion, a dividend yield of 5.68%, and has increased its dividend for 30 years, offering a diversified portfolio that includes oil and natural gas pipelines, regulated utilities, and clean energy investments [10][16]. - Both companies have maintained strong balance sheets and have shown resilience during market downturns, with Enterprise's distributable cash flow covering its distribution by 1.7 times [12]. Investment Considerations - While higher yields may attract investors to companies like Energy Transfer, the historical distribution cut in 2020 raises concerns about reliability [7][14]. - The article suggests that lower-yielding but more consistent options like Enterprise and Enbridge provide a better risk-reward ratio for dividend investors [15].

Core Viewpoint - Enbridge Inc. is recognized as a strong dividend payer, recently increasing its quarterly dividend by 2.9%, reflecting its commitment to returning value to shareholders and maintaining a robust annual dividend yield of 5.77% [2][3]. Financial Performance - Enbridge raised its quarterly dividend to C$0.97 per share, marking 31 consecutive years of dividend growth [3]. - The company forecasts a distributable cash flow of C$5.70 – C$6.10 per share for FY 2026, which is a 4% increase from the midpoint of its 2025 guidance [4]. - Enbridge expects to generate an adjusted core profit of C$20.2 billion – C$20.8 billion in 2026, compared to C$19.4 billion – C$20 billion for 2025 [4]. Growth Initiatives - The company plans to invest approximately CA$10 billion (approximately $7.2 billion) into growth capital projects in the upcoming year [4]. - Enbridge anticipates strong growth in 2026 driven by new projects and favorable regulatory outcomes in Gas Distribution and Gas Transmission [5].

Core Insights - The article discusses the importance of preparing for retirement and highlights the best energy stocks for retirement portfolios, emphasizing the need for thoughtful investment strategies to ensure financial stability during retirement [2][4][6]. Retirement Preparedness - A study from Vanguard indicates that only 40% of workers aged 61 to 65 are financially aligned with their retirement goals, suggesting a significant portion may face income shortfalls [2][3]. - The median individual in this age group is projected to have a yearly income gap of about $9,000, which is approximately 24% below the required amount to maintain their lifestyle in retirement [3]. Investment Strategies - Dividend-paying stocks are favored by many investors for retirement portfolios due to their historical performance and lower volatility compared to the broader market [4][5]. - The energy sector is noted for its strong commitment to dividends, with an annual underlying dividend growth rate of 3% reported by Janus Henderson, and total dividends paid in 2024 reaching $166.2 billion, up from $118.9 billion in 2018 [5]. Best Energy Stocks - The article outlines a methodology for selecting the best energy stocks, focusing on companies with consistent dividend growth over the past decade, an annual dividend yield exceeding 3%, and stock gains of at least 20% over the same period [8]. - The selection process also considers the number of hedge funds invested in these stocks, as following top hedge fund picks has historically led to market outperformance [9]. Company Highlights - **Enterprise Products Partners L.P. (NYSE:EPD)**: Recognized as a leading North American midstream energy service provider, it has 26 hedge fund holders. Recent analyst updates include a price target increase from $33 to $34 by Morgan Stanley, while JPMorgan downgraded its rating from 'Overweight' to 'Neutral' [10][11][12]. - **Enbridge Inc. (NYSE:ENB)**: This midstream energy operator has 27 hedge fund holders and recently increased its quarterly dividend by 2.9% to C$0.97 per share, marking 31 consecutive years of dividend growth. The company forecasts a distributable cash flow of C$5.70 – C$6.10 per share for FY 2026, reflecting a 4% increase from previous guidance [13][14][15][16][17].

Company Overview - Enbridge Inc. is a highly diversified midstream company with a market capitalization exceeding $100 billion [2] - The company offers an attractive dividend yield of nearly 6% and is investing billions in growth initiatives [2] Investment Strategy - The Value Portfolio focuses on constructing retirement portfolios using a fact-based research strategy that includes thorough analysis of 10Ks, analyst commentary, market reports, and investor presentations [2] - The Retirement Forum provides model portfolios, macroeconomic overviews, in-depth company analyses, and retirement planning information to help maximize capital and income [2]

Group 1 - Enbridge Inc. is a highly diversified midstream company with a market capitalization exceeding $100 billion [2] - The company offers an attractive dividend yield of nearly 6% and is investing billions in growth initiatives [2] - Enbridge is recognized as a premier provider of takeaway capacity in the energy sector [2] Group 2 - The Retirement Forum focuses on actionable investment ideas, high-yield retirement portfolios, and macroeconomic outlooks to enhance capital and income [1] - The Value Portfolio employs a fact-based research strategy, analyzing 10Ks, analyst commentary, market reports, and investor presentations to identify investment opportunities [2] - The leader of The Retirement Forum invests real money in the stocks recommended, providing model portfolios and in-depth company analysis [2]

Core Viewpoint - Enbridge is recognized as a high-quality income stock, having announced a 3% increase in its dividend, marking 31 consecutive years of dividend growth [1][11]. Financial Performance - The company has raised its quarterly dividend payment to CA$0.97 (approximately $0.70), translating to an annual dividend of CA$3.88 ($2.78) [3]. - Enbridge expects to generate distributable cash flow between CA$5.70 and CA$6.10 per share ($4.09-$4.37), reflecting a 3.5% increase from the previous year's guidance [4]. Dividend Sustainability - The anticipated dividend payout ratio is projected to be between 64% and 68%, comfortably within the company's target range of 60%-70% [4]. - Enbridge aims to grow its distributable cash flow per share at a compound annual rate of approximately 3% from 2023 to 2026 [4]. Growth Initiatives - The company plans to invest CA$8 billion ($5.7 billion) in growth capital projects in the upcoming year, including significant projects in its gas transmission segment [6]. - Enbridge is set to deploy about CA$10 billion ($7.2 billion) into growth capital projects next year, fully funded by its post-dividend free cash flow [7]. Long-term Outlook - Enbridge has secured CA$37 billion ($26.5 billion) in growth capital projects with in-service dates extending through 2033, providing strong visibility into its long-term growth [8]. - The company anticipates an acceleration in its distributable cash flow growth rate to around 5% annually after 2026, driven by heavy investments and project completions [9]. Investment Proposition - Enbridge's robust financial profile and growth visibility position it well for continued dividend increases, with expectations of low-to-mid single-digit annual increases in the coming years [10].

Core Viewpoint - Enbridge Inc. has provided its 2026 guidance, projecting adjusted EBITDA between $20.2 billion and $20.8 billion, with distributable cash flow (DCF) per share estimated at $5.70 to $6.10 [1]. Group 1: 2026 Guidance - The company anticipates EBITDA contributions from Liquids Pipelines of approximately $9.6 billion, Gas Transmission around $5.5 billion, and Gas Distribution & Storage roughly $4.5 billion [2]. - Enbridge plans to invest about $10 billion in growth capital for 2026, excluding maintenance capital, while targeting a year-end debt-to-EBITDA ratio of 4.5 to 5 times [2]. Group 2: Dividend Information - The company has increased its quarterly dividend by 3% to 97 cents, which translates to an annualized dividend of $3.88, effective March 1, 2026 [3]. Group 3: 2025 & Long-Term Outlook - For 2025, adjusted EBITDA is projected to be in the upper half of the $19.4 billion to $20 billion range, with DCF per share at the midpoint of $5.50 to $5.90 [4]. - Enbridge reaffirmed its 2023–2026 compound annual growth rate (CAGR) outlook of 7% to 9% for EBITDA, 4% to 6% for adjusted EPS, and approximately 3% for DCF per share, with post-2026 growth expected at around 5% for EBITDA, EPS, and DCF per share [4]. - The company expects about $8 billion in new projects to enter service in 2026, supported by low-risk commercial frameworks, and anticipates strong growth from recent rate settlements in Gas Distribution and Gas Transmission [4]. Group 4: Recent Earnings Results - In the latest earnings report, the company reported third-quarter adjusted EPS of 33 cents, which fell short of the estimated 39 cents, and revenue of $10.633 billion, below the consensus of $10.860 billion [5]. - Enbridge shares experienced a slight increase of 0.35%, reaching $48.29 at the time of publication [5].

Core Viewpoint - Enbridge Inc. announced its 2026 financial guidance, projecting steady growth driven by new projects and strong utilization of existing assets, alongside a 3% increase in its annual common share dividend [1][2]. Financial Guidance - The company provided 2026 adjusted EBITDA guidance of CAD 20.2 billion to CAD 20.8 billion and distributable cash flow (DCF) per share guidance of CAD 5.70 to CAD 6.10 [1]. - Enbridge reaffirmed its 2025 full-year guidance, expecting to finish in the upper half of the EBITDA range of CAD 19.4 billion to CAD 20.0 billion and at the midpoint for DCF per share [1]. - The company anticipates a compound annual growth rate of 7-9% for EBITDA, 4-6% for adjusted earnings per share (EPS), and approximately 3% for DCF per share from 2023 to 2026 [1]. Dividend Increase - Enbridge declared a 3% increase in its quarterly common share dividend from CAD 0.9425 to CAD 0.97, effective March 1, 2026, marking the 31st consecutive annual increase [1]. Growth Drivers - The projected EBITDA for 2026 is supported by approximately CAD 8 billion of new projects entering service, strong growth from recent rate settlements, and optimization of existing assets [1]. - Key growth drivers include contributions from organic projects, increased rates on U.S. Gas Transmission assets, and favorable re-contracting [1]. Capital Investments and Financing - Enbridge plans to deploy approximately CAD 10 billion of growth capital in 2026, with a strong balance sheet and a debt-to-EBITDA ratio expected to remain within the target range of 4.5-5.0x [1]. - The financing plan includes CAD 10 billion of debt issuances, primarily for refinancing CAD 5 billion of debt maturities, with no external equity required [1].