3 No-Brainer Energy Stocks to Buy Right Now

Core Insights - The U.S. electricity demand is projected to surge by 55% by 2040, driven by factors such as AI data centers, onshoring of manufacturing, and overall electrification [1] - Energy companies that focus on meeting this growing demand are seen as attractive investment opportunities, with Brookfield Renewable, Enbridge, and NextEra Energy identified as key players [2] Brookfield Renewable - Brookfield Renewable is a leading global renewable energy company with a diversified portfolio including hydro, wind, solar, and nuclear services, generating stable cash flow [3] - The company anticipates a 4% to 7% annual growth in funds from operations (FFO) through the end of the decade, supported by inflation in long-term contracts and margin improvement initiatives [4] - A project backlog is expected to contribute an additional 4% to 6% to FFO per share annually, with overall FFO per share growth projected to exceed 10% [4] - This growth is expected to enable a 5% to 9% annual increase in dividends, positioning Brookfield for mid-teens total annual returns [5] Enbridge - Enbridge is a major North American energy infrastructure company with a focus on liquids pipelines, natural gas transmission, and renewable energy [6] - The company has a stable earnings base supported by long-term contracts and is investing in cleaner energy infrastructure [7] - Enbridge expects a 3% compound annual growth rate in cash flow per share through next year, accelerating to around 5% post-2026, which should support similar dividend growth [8] - The combination of high dividend yield and moderate earnings growth positions Enbridge for double-digit total annual returns [8] NextEra Energy - NextEra Energy operates one of the largest electric utilities in the U.S. and has a significant renewable energy platform, generating stable cash flow [9] - The company plans to invest $120 billion in American energy infrastructure over the next four years, focusing on solar energy capacity and a growing backlog of renewable projects [10][11] - This investment is expected to drive adjusted earnings per share growth at the top end of the 6% to 8% target range through at least 2027, with dividends projected to increase by around 10% annually [12] - The combination of growth and income positions NextEra Energy for double-digit total annual returns [12] Overall Investment Outlook - Given the anticipated surge in electricity demand, Brookfield Renewable, Enbridge, and NextEra Energy are well-positioned to deliver strong total returns, making them attractive investment options in the current market [13]