Getting a Tax Refund? 3 Energy Stocks to Buy With Your Refund Check.

Investment Opportunities in the Energy Sector - Approximately 40% of tax filers receive a refund annually, presenting an opportunity for investment in the energy sector, which can potentially grow the value of these refunds [1][2] - Enbridge, NextEra Energy, and Kinder Morgan are highlighted as strong candidates for investment with tax refunds or other cash sources [2] Enbridge Overview - Enbridge offers a high dividend yield of 6.2%, significantly above the S&P 500's 1.2% and the average energy stock's 3.3%, making it attractive for yield-seeking investors [3][4] - The company has a 30-year history of annual dividend increases, showcasing its resilience in the volatile energy sector [4] - Enbridge's midstream business model, which charges fees to connect energy producers with downstream companies, ensures stable cash flow even during downturns in the energy industry [5] - Approximately 75% of Enbridge's EBITDA is derived from oil and natural gas pipelines, while the remainder comes from regulated natural gas utilities and renewable energy investments, providing diversification [6] - The primary concern for investors is that the yield may constitute the majority of total returns, but it remains a strong option for high-yield energy investments [7] NextEra Energy Overview - U.S. electricity demand is projected to increase by 55% over the next two decades, driven by factors such as onshoring manufacturing and AI data centers, which aligns with NextEra Energy's strategy [8][9] - NextEra Energy is the world leader in renewable energy and operates one of the largest natural gas-fired generation fleets, positioning it well to meet the rising demand for cleaner energy sources [9][10] - The company anticipates operating about 75 gigawatts of renewable energy capacity by the end of 2027, which would surpass the installed capacity of all but seven countries [10] - NextEra Energy expects adjusted earnings growth to remain at the top end of its 6% to 8% annual target range through at least 2027, alongside a projected 10% annual growth in its 3.2% yielding dividend [11][12] Kinder Morgan Overview - Kinder Morgan's stock performed exceptionally well in 2024, with a 55% increase, significantly outperforming the S&P 500 [13] - The company operates the largest natural gas transmission network in the U.S., covering nearly 66,000 miles and transporting about 40% of the nation's natural gas, which supports predictable cash flows [14] - Kinder Morgan has increased its dividend for eight consecutive years, reflecting stability in its cash flows [15] - The company expanded its backlog to $8 billion in 2024, up from$3 billion in 2023, and expects to put around $2 billion of this backlog into service, projecting double-digit growth in adjusted earnings per share [16]