The Motley Fool·2025-09-28 08:20Core Viewpoint - High dividend yields can attract investors, but caution is advised as they may indicate potential risks; however, certain high-yield stocks are deemed safe and promising for passive income generation [1][2]. Group 1: Chevron - Chevron has a dividend yield of 4.3% and operates in both upstream and downstream sectors of the oil and gas industry, benefiting from a diversified business model that mitigates volatility [4][6]. - The company has a strong dividend history, having paid and raised its dividend for 37 consecutive years, showcasing its robust financial management [5]. - Chevron's recent merger with Hess enhances its position in the lucrative Stabroek Block off the coast of Guyana, promising strong production and dividend growth in the future [6]. Group 2: Enbridge - Enbridge offers a dividend yield of 5.5% and is a major player in North America's energy sector, operating an extensive network of pipelines and storage facilities [7][8]. - The company has a diverse business model that includes gas utilities and renewable energy projects, with approximately 80% of its EBITDA protected from inflation due to its contract structures [8][9]. - Enbridge has consistently met its annual fiscal guidance for 19 years and has raised its dividend for 28 consecutive years, making it a reliable choice for investors seeking high yields with minimal risk [9]. Group 3: Kinder Morgan - Kinder Morgan has a dividend yield of 4.2% and operates a vast pipeline network of approximately 79,000 miles, primarily transporting natural gas and refined products across the U.S. [10]. - The company is well-positioned to benefit from increasing domestic natural gas production and rising energy demand, particularly from AI data centers [11]. - Kinder Morgan has a history of seven consecutive annual dividend increases, and its corporate structure avoids the complexities associated with master limited partnerships, making it attractive to investors [12].