These High-Yield Dividend Stocks See Value (and Growth) in This Overlooked Space

Core Viewpoint - Energy infrastructure companies are increasingly investing in natural gas storage assets, recognizing their critical role in balancing supply and demand, which is expected to enhance dividend growth for these companies [1][2][13]. Group 1: Investment Activity - Leading infrastructure operators have been actively acquiring gas storage assets, which are often overlooked by investors, indicating a growing recognition of their value [2][3]. - Brookfield Infrastructure has invested a total of $310 million in North American gas storage assets over the past decade, taking a contrarian approach during market lows [3][4]. - Enbridge acquired two gas storage assets for a total of $628 million, enhancing its cash flow and supporting LNG export facilities [7][9]. - Williams made a significant acquisition of a gas storage portfolio for nearly $2 billion, integrating it into its pipeline network to support power and LNG markets [11]. Group 2: Financial Performance - Brookfield's gas storage business has achieved over 20% compound annual growth in funds from operations (FFO) over the last five years, generating over $240 million in annual EBITDA [4][5]. - Enbridge's acquisitions are expected to provide stable, growing cash flow, supporting its high-yielding dividend, which has been increased for nearly 30 consecutive years [9]. - Williams anticipates significant earnings growth from its new gas storage assets, contributing to a dividend increase of over 6% earlier this year, with a forward yield above 4.5% [12]. Group 3: Future Growth Potential - Brookfield sees opportunities for its gas storage assets to support renewable natural gas and hydrogen, indicating a positive outlook for future growth [5][6]. - The ongoing demand for natural gas storage is expected to provide Brookfield, Enbridge, and Williams with growing cash flow, enhancing their ability to increase dividends [13].