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3 Brilliant High-Yield Energy Stocks to Buy Now and Hold for the Long Term
BEPBrookfield Renewable Partners L.P.(BEP) The Motley Fool·2025-03-20 11:25

Core Viewpoint - The new administration in Washington, D.C. aims to lower energy prices quickly, but long-term investors should focus on companies that can thrive over decades rather than those benefiting from temporary government policies [1] Group 1: Company Analysis - Chevron has a diversified operating portfolio, with exposure to upstream, midstream, and downstream sectors, which helps mitigate the impact of falling energy prices [3][4] - Chevron maintains a strong balance sheet with a debt-to-equity ratio of 0.16x, allowing it to invest during tough times and pay reliable dividends, having increased its dividend annually for 37 years [4][5] - Enterprise Products Partners operates in the midstream sector, which is fee-driven rather than commodity-driven, making it less sensitive to energy price fluctuations and allowing it to maintain a steady volume [6][7] - Enterprise has an investment-grade-rated balance sheet and a distributable cash flow that covers its distribution by 1.7x, having increased its distribution annually for 26 consecutive years [7][8] - Brookfield Renewable focuses on renewable energy, with a growing demand for clean energy expected to continue for decades, offering a 6.5% yield for partner units and a 5.2% yield for corporate shares [9][10] - Brookfield Renewable reported a 10% increase in funds from operations in 2024 and has a robust pipeline of growth opportunities, benefiting from the current market for mature clean energy assets [10] Group 2: Investment Strategy - Long-term dividend investors should prioritize companies that can withstand market fluctuations and continue to pay dividends over the next few decades, with Chevron, Enterprise, and Brookfield Renewable presenting an attractive balance of income and risk [11]