Want Decades of Passive Income? 2 Energy Stocks to Buy Right Now.

Core Viewpoint - The energy sector offers opportunities for durable passive income through companies with stable business models that can mitigate commodity price volatility and support growing dividends [1] Company Summaries Enbridge - Enbridge has a 70-year history of paying dividends, marking its 30th consecutive year of increases, with a compound annual growth rate of 9% over the past three decades, including a 3.1% increase this year, yielding 5.9% currently [3][4] - Approximately 98% of Enbridge's earnings come from stable cost-of-service or contracted assets, with a dividend payout ratio of 60% to 70% of stable cash flow, supported by a strong investment-grade balance sheet [4][5] - Enbridge has a multibillion-dollar backlog of secured capital projects focused on lower carbon energy, expecting cash flow per share growth at a 3% compound annual rate through 2026 and around 5% per year thereafter, which will support dividend increases in the 3% to 5% range [5][6] Brookfield Renewable - Brookfield Renewable has achieved a 6% compound annual growth rate in dividends since 2001, with a 5% increase for 14 consecutive years, currently yielding 5.5% [7] - The company generates stable cash flow through long-term power purchase agreements (PPAs) with utilities, with cash flow growth of about 2% to 3% annually, and expects to capture higher market rates as existing PPAs expire [8][9] - Brookfield is developing 200 gigawatts of renewable energy projects, ramping up development capabilities from 7 GW to 10 GW annually by 2027, which should add 4% to 6% to cash flow per share each year [10] - The company has committed $12.5 billion to new businesses last year, with ample liquidity for future investments, and anticipates over 10% annual cash flow per share growth for the next decade, supporting dividend growth in the 5% to 9% range [11][12] Investment Outlook - Both Enbridge and Brookfield Renewable have demonstrated the durability of their dividends, with stable cash flow and conservative financial profiles, positioning them as ideal passive income stocks for long-term investment [13]