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Globe and Mail
25-05-2025
- Business
- Globe and Mail
3 High-Yield Dividend Stocks to Buy Right Now to Boost Your Passive Income
Buying dividend stocks is one of many ways to generate passive income. Many companies offer attractive yields that are much higher than the S&P 500 's average, which is currently below 1.5%. Dominion Energy (NYSE: D), Western Midstream Partners (NYSE: WES), and Chevron (NYSE: CVX) stand out to a few contributors for their higher dividend yields. Here's why they believe these stocks are great options for those seeking ways to boost their passive income. Dominion Energy is working back to dividend growth Reuben Gregg Brewer (Dominion Energy): Some turnarounds are very risky, with companies working back from the brink of financial disaster. Then there are the turnarounds like the one Dominion Energy is undertaking. Dominion is basically a well-run utility that got over its skis because of an overly complicated business model. It has been slimming down by selling assets such as pipelines and natural gas utilities. Now it is largely just a regulated electric utility operating in attractive regions. That makes the 4.8% yield on offer fairly attractive, noting that the average utility yields only around 2.9%. Investors can buy for the yield, with management stating clearly that the dividend is safe at current levels as the turnaround progresses. What the dividend isn't doing, however, is growing. That will be a problem for some income-focused investors and really highlights the current turnaround effort. D data by YCharts. EBITDA = earnings before interest, taxes, depreciation, and amortization. TTM = trailing 12 months. Dominion is currently working on strengthening its financial position and trimming its payout ratio so that it's more in line with industry peers. Essentially, the heavy lifting here is on the balance sheet. Progress is being made, but it will probably take at least another few years before dividends are reliably growing again because the payout ratio remains elevated. But with earnings projected to grow between 5% and 7% a year, that, too, will change for the better in time. A payout ratio below 70% will likely be a major dividend turning point. Meanwhile, while you wait for dividend growth to resume, you get to collect that well-above-average yield, which seems like a reasonable trade-off. A high-octane income stream Matt DiLallo (Western Midstream Partners): Western Midstream Partners is a master limited partnership (MLP) thatowns and operates midstream assets that gather, process, and transport oil and natural gas for energy companies, including its parent company, Occidental Petroleum. Most of its assets generate stable fee-based cash flows, which support a cash distribution that yields nearly 9.5%. More often than not, a payout approaching 10% is a red flag. However, that's not the case with Western Midstream Partners. The MLP expects to produce $1.3 billion to $1.5 billion in free cash flow this year. That's enough money to cover its lucrative distribution and planned capital expenditures to maintain and grow its business with room to spare. Meanwhile, the company has a strong balance sheet, with its leverage ratio currently below its 3.0 times target. That gives it ample financial flexibility to make bolt-on acquisitions and approve additional growth capital projects as opportunities arise. It's targeting organic investments that deliver mid-teens returns and acquisitions that enhance its asset footprint. Western Midstream's growth investments and financial flexibility fuel its view that it can grow its already monster distribution at a low- to mid-single-digit rate in the future. It recently hiked its payout by 4%. The company's high-yielding and growing distribution can boost your passive income as long as you're comfortable with receiving the Schedule K-1 federal tax form that the MLP sends its investors each year. A proven dividend growth stock Neha Chamaria (Chevron): With lower oil prices triggering a sell-off in oil stocks, shares of Chevron have slumped nearly 20% over the past month and a half as of this writing. The drop has pushed the oil stock's yield to 5%, making it an attractive dividend stock to buy now for years of passive income. Chevron has been an incredible dividend stock when it comes to stability and dividend growth. It has increased its dividend for 38 consecutive years, including a 5% hike earlier this year. Chevron is on solid footing right now and should be able to continue its dividend increase streak for years to come. In 2024, the oil major returned a record $27 billion in cash to shareholders, including $11.8 billion in dividends. Chevron expects to grow production by a compound annual rate of 6% through 2026 and could generate $9 billion in incremental free cash flow between 2024 and 2026 at a Brent crude oil price of $60 per barrel. Its cash flows could grow faster if Chevron wins the ongoing arbitration proceedings and acquires Hess to gain a stake in Guyana's oil-rich Stabroek Block. All that excess cash, with or without the Hess acquisition, should mean bigger dividends for Chevron shareholders. That makes Chevron a highly reliable, high-yield dividend stock to buy now. Should you invest $1,000 in Dominion Energy right now? Before you buy stock in Dominion Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dominion Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor 's total average return is957% — a market-crushing outperformance compared to167%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
Yahoo
25-05-2025
- Business
- Yahoo
3 High-Yield Dividend Stocks to Buy Right Now to Boost Your Passive Income
Buy Dominion Energy for the 4.8% yield; keep it for the unfolding turnaround. Western Midstream Partners pays a monster cash distribution. The recent drop in Chevron's stock price is a solid buy opportunity. 10 stocks we like better than Dominion Energy › Buying dividend stocks is one of many ways to generate passive income. Many companies offer attractive yields that are much higher than the S&P 500's average, which is currently below 1.5%. Dominion Energy (NYSE: D), Western Midstream Partners (NYSE: WES), and Chevron (NYSE: CVX) stand out to a few contributors for their higher dividend yields. Here's why they believe these stocks are great options for those seeking ways to boost their passive income. Reuben Gregg Brewer (Dominion Energy): Some turnarounds are very risky, with companies working back from the brink of financial disaster. Then there are the turnarounds like the one Dominion Energy is undertaking. Dominion is basically a well-run utility that got over its skis because of an overly complicated business model. It has been slimming down by selling assets such as pipelines and natural gas utilities. Now it is largely just a regulated electric utility operating in attractive regions. That makes the 4.8% yield on offer fairly attractive, noting that the average utility yields only around 2.9%. Investors can buy for the yield, with management stating clearly that the dividend is safe at current levels as the turnaround progresses. What the dividend isn't doing, however, is growing. That will be a problem for some income-focused investors and really highlights the current turnaround effort. Dominion is currently working on strengthening its financial position and trimming its payout ratio so that it's more in line with industry peers. Essentially, the heavy lifting here is on the balance sheet. Progress is being made, but it will probably take at least another few years before dividends are reliably growing again because the payout ratio remains elevated. But with earnings projected to grow between 5% and 7% a year, that, too, will change for the better in time. A payout ratio below 70% will likely be a major dividend turning point. Meanwhile, while you wait for dividend growth to resume, you get to collect that well-above-average yield, which seems like a reasonable trade-off. Matt DiLallo (Western Midstream Partners): Western Midstream Partners is a master limited partnership (MLP) that owns and operates midstream assets that gather, process, and transport oil and natural gas for energy companies, including its parent company, Occidental Petroleum. Most of its assets generate stable fee-based cash flows, which support a cash distribution that yields nearly 9.5%. More often than not, a payout approaching 10% is a red flag. However, that's not the case with Western Midstream Partners. The MLP expects to produce $1.3 billion to $1.5 billion in free cash flow this year. That's enough money to cover its lucrative distribution and planned capital expenditures to maintain and grow its business with room to spare. Meanwhile, the company has a strong balance sheet, with its leverage ratio currently below its 3.0 times target. That gives it ample financial flexibility to make bolt-on acquisitions and approve additional growth capital projects as opportunities arise. It's targeting organic investments that deliver mid-teens returns and acquisitions that enhance its asset footprint. Western Midstream's growth investments and financial flexibility fuel its view that it can grow its already monster distribution at a low- to mid-single-digit rate in the future. It recently hiked its payout by 4%. The company's high-yielding and growing distribution can boost your passive income as long as you're comfortable with receiving the Schedule K-1 federal tax form that the MLP sends its investors each year. Neha Chamaria (Chevron): With lower oil prices triggering a sell-off in oil stocks, shares of Chevron have slumped nearly 20% over the past month and a half as of this writing. The drop has pushed the oil stock's yield to 5%, making it an attractive dividend stock to buy now for years of passive income. Chevron has been an incredible dividend stock when it comes to stability and dividend growth. It has increased its dividend for 38 consecutive years, including a 5% hike earlier this year. Chevron is on solid footing right now and should be able to continue its dividend increase streak for years to come. In 2024, the oil major returned a record $27 billion in cash to shareholders, including $11.8 billion in dividends. Chevron expects to grow production by a compound annual rate of 6% through 2026 and could generate $9 billion in incremental free cash flow between 2024 and 2026 at a Brent crude oil price of $60 per barrel. Its cash flows could grow faster if Chevron wins the ongoing arbitration proceedings and acquires Hess to gain a stake in Guyana's oil-rich Stabroek Block. All that excess cash, with or without the Hess acquisition, should mean bigger dividends for Chevron shareholders. That makes Chevron a highly reliable, high-yield dividend stock to buy now. Before you buy stock in Dominion Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Dominion Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Matt DiLallo has positions in Chevron. Neha Chamaria has no position in any of the stocks mentioned. Reuben Gregg Brewer has positions in Dominion Energy. The Motley Fool has positions in and recommends Chevron. The Motley Fool recommends Dominion Energy and Occidental Petroleum. The Motley Fool has a disclosure policy. 3 High-Yield Dividend Stocks to Buy Right Now to Boost Your Passive Income was originally published by The Motley Fool
Yahoo
12-05-2025
- Business
- Yahoo
3 High-Yield Utility Stocks to Buy to Create Years of Passive Income
Black Hills is small and boring, but it has a monster 55 year long dividend streak and a 4.4% yield. Dominion offers a high dividend yield today and growth potential in the future. Duke Energy operates in regions with strong growth potential. 10 stocks we like better than Dominion Energy › The utility sector has been a sleepy industry over the years. These companies generate very stable earnings backed by government-regulated rate structures. Because governments set rates, utilities don't grow that fast. However, these companies tend to generate lots of stable income, which gives them money to pay lucrative dividends. Black Hills (NYSE: BKH), Dominion (NYSE: D), and Duke Energy (NYSE: DUK) currently stand out to a few contributors for their high-yielding payouts. Here's why they believe these utility stocks could help you generate years of passive income. Reuben Gregg Brewer (Black Hills): Getting into the elite ranks of Dividend Kings is an impressive feat. It requires a strong business model that gets executed in good times and bad. Black Hills is one of the few utilities that has achieved Dividend King status despite being an industry small fry with a market cap of only around $4.5 billion. But that's not all that sets it apart from the pack today. Black Hills' dividend yield is roughly 4.4%. That is far above the 1.3% or so yield on offer from the S&P 500 Index (SNPINDEX: ^GSPC) and the 2.9% of the average utility. So not only is Black Hills a Dividend King but it also has a relatively attractive yield. What's the catch? There's really no catch. Black Hills is just small and underfollowed. In fact, the utility's customer base has been growing at nearly three times the rate of the U.S. population. That's pretty attractive and suggests that Black Hills should continue to have its investment plans and rates approved by regulators. That, in turn, should allow this Dividend King to live up to its long-term goal of 4% to 6% earnings growth, with dividends likely to grow at a similar rate. To be fair, Black Hills isn't going to be an exciting stock to own. But it is the kind of high yield utility you buy if you want to create years of reliable passive income. Matt DiLallo (Dominion): Dominion Energy provides electricity to millions of customers across Virginia and the Carolinas. Demand for power in those places is surging, driven by economic growth, increased electrification, and data center expansion. Virginia, in particular, is a hotbed of data center developments. The utility is investing heavily to meet the growing demand for power. Dominion expects to invest a staggering $50 billion by 2029 on projects to grow its lower-carbon energy generation capacity and the resiliency of its options. For example, the company and its joint venture partner are spending over $10 billion to build the Coastal Virginia Offshore Wind project, which will help supply renewable energy to meet growing demand in Virginia. Dominion's investments should grow the company's earnings per share at a 5% to 7% annual rate over the next several years. That ever-increasing earnings stream will enable the company to maintain its current dividend level during its heavy investment phase. At a 4.9% yield, the utility can generate a lot of income for investors in the years to come. Meanwhile, as its earnings grow and its dividend payout ratio declines, Dominion can eventually start increasing its dividend. Given the increasing power needs of data centers, the company should have plenty of growth beyond 2029. It should also be able to pay a stable and eventually growing dividend for years to come, making it a top utility to buy if you want to generate a lot of passive income. Neha Chamaria (Duke Energy): Duke Energy recently reiterated its long-term earnings growth targets through 2029, which should also mean bigger dividends for shareholders for years to come. Duke Energy has paid a dividend every year for 99 consecutive years and increased it every year for over a decade now. Duke Energy stock's 3.5% yield may not be among the highest in the utility sector, but its consistent dividend growth has contributed handsomely to shareholder returns over time. In five years, Duke Energy has generated 80% in total returns (with dividends reinvested) and has more than doubled investors' money in the past decade. Also, its dividend yield is twice that of the S&P 500. Duke Energy expects to grow its adjusted earnings per share (EPS) by 5% to 7% through 2029 off its 2025 guidance midpoint and remains committed to growing its dividend while maintaining a target payout ratio of 60% to 70%. I strongly believe the company can meet its goals, given its wide footprint in growing jurisdictions and growth moves. For perspective, Duke Energy is among the largest regulated utilities in the U.S., providing electricity to 8.2 million customers and gas to 1.6 million people. It primarily serves the Southeast and Midwest regions. While some of the states like Florida and the Carolinas are witnessing high population migration, the Midwest is witnessing a boom in data centers. Both factors should work in Duke Energy's favor. Meanwhile, Duke Energy plans to invest $83 billion between 2025 and 2029 to modernize and expand its infrastructure, which should support rate increases. Before you buy stock in Dominion Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Dominion Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $614,911!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $714,958!* Now, it's worth noting Stock Advisor's total average return is 907% — a market-crushing outperformance compared to 163% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 5, 2025 Matt DiLallo has no position in any of the stocks mentioned. Neha Chamaria has no position in any of the stocks mentioned. Reuben Gregg Brewer has positions in Black Hills and Dominion Energy. The Motley Fool recommends Dominion Energy and Duke Energy. The Motley Fool has a disclosure policy. 3 High-Yield Utility Stocks to Buy to Create Years of Passive Income was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-05-2025
- Business
- Yahoo
3 High-Yield Midstream Stocks to Buy to Create Years of Passive Income
Enbridge is a reliable dividend stock with a portfolio that's shifting along with the world. Enterprise Products Partners' substantial 6.8% yield looks safe and bankable. Kinder Morgan's pipeline of expansion projects should give it fuel to grow its dividend. The energy midstream sector has been a great spot for investors to go if they want to make some passive income. Many companies in this sector produce very stable cash flow as oil and gas flow through their pipelines and related midstream assets. That gives them money to pay lucrative dividends and invest in growing their businesses. Enbridge (NYSE: ENB), Enterprise Products Partners (NYSE: EPD), and Kinder Morgan (NYSE: KMI) are among the top options, according to a few contributors, for those seeking passive income in the sector. Here's why this trio of midstream companies could help you create years of passive income. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Reuben Gregg Brewer (Enbridge): The midstream sector is tied at the hip to oil and natural gas producers. But not every pipeline company is the same, and one notable standout is Enbridge. A key corporate goal is to provide the world with the energy it needs. Today, only around 75% of Enbridge's earnings before interest, taxes, depreciation, and amortization (EBITDA) are linked to oil and natural gas pipelines. That 75% is a solid core, to be sure, given that Enbridge is one of the largest midstream players in North America. And this foundation has handily supported regular dividend increases, with the annual streak now up to three decades. But long-term dividend investors need to pay particular attention to the other 25% of EBITDA. The rest of the portfolio is split between regulated natural gas utilities and renewable power investments. Both of these businesses provide reliable cash flows, just like pipelines. However, the utility business tends to provide more consistent opportunities for capital investments, while clean energy investment is expected to grow materially in the years ahead. And both natural gas utilities and renewable power are moving Enbridge in the same "cleaner power" direction as the rest of the world. In other words, Enbridge is preparing today for the energy market of tomorrow. With a huge 5.8% yield, 30 annual dividend increases, and a business that is changing with the energy needs of the world, Enbridge is the kind of dividend stock you buy and hold for the long term. Neha Chamaria (Enterprise Products Partners): Enterprise Products Partners is one of the largest midstream energy companies in the U.S., with a massive pipeline network spanning over 50,000 miles. While its large footprint provides critical energy transportation services to the economy, Enterprise Products has judiciously used capital over the decades to grow its business and reward shareholders while maintaining a strong balance sheet. Enterprise Products has increased its dividend for 26 consecutive years, and its distributable cash flows (DCF) have covered its dividend payout by at least 1.5 times since 2018. Similar to cash flows from operations, DCF is an important metric for master limited partnerships like Enterprise Products, as they are required to distribute a major portion of their income to shareholders in the form of dividends. This is a great time to invest in Enterprise Products stock. The midstream giant expects major projects worth $6 billion to come online this year. That's nearly 80% of all major projects under construction. As these projects start contributing to the company's earnings and cash flows, Enterprise Products should be in an even stronger position to not only pay regular dividends but also increase them year after year. With the stock also yielding a hefty 6.8%, Enterprise Products is one of the best midstream stocks to buy to earn years of passive income. Matt DiLallo (Kinder Morgan): Kinder Morgan currently clocks in with a dividend yield approaching 4.5%. That high-yielding payout is on a very sustainable foundation. The natural gas pipeline giant generates very stable cash flow, as 95% comes from highly contracted and predictable sources, like long-term fee-based contracts. Meanwhile, the company pays out less than 45% of its stable cash flows in dividends. That enables it to retain significant excess free cash flow to invest in expanding its operations. The company has $8.8 billion of growth capital projects in its backlog, primarily natural gas pipeline expansions ($8 billion). It currently has projects underway that it expects will enter commercial service by the end of the decade. That gives it a lot of visibility into its ability to grow its cash flow in the coming years. Kinder Morgan's backlog has ballooned by more than $5 billion over the past year as it has secured several large-scale natural gas expansion projects. Demand for gas is surging these days, fueled by catalysts like AI data centers, the onshoring of manufacturing, and the electrification of transportation. These drivers should enable Kinder Morgan to continue securing additional expansion projects in the coming years. The pipeline giant's cash flow should grow briskly over the next several years as its growing backlog of expansion projects enters commercial service. That should enable Kinder Morgan to continue increasing its dividend. The company recently raised its payment for the eighth straight year. Given its high yield and growth visibility, Kinder Morgan can certainly create years of passive income for investors. Before you buy stock in Enbridge, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Enbridge wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $623,685!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $701,781!* Now, it's worth noting Stock Advisor's total average return is 906% — a market-crushing outperformance compared to 164% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 5, 2025 Matt DiLallo has positions in Enbridge, Enterprise Products Partners, and Kinder Morgan. The Motley Fool has positions in and recommends Enbridge and Kinder Morgan. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy. 3 High-Yield Midstream Stocks to Buy to Create Years of Passive Income was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
22-04-2025
- Business
- Yahoo
Nvidia Is Expensive. Here Are 3 High-Yield Artificial Intelligence Plays That Aren't.
Nvidia (NASDAQ: NVDA) has been one of the early beneficiaries of the artificial intelligence (AI) megatrend. The company's semiconductors provide the computing power AI needs to thrive. That's driven up Nvidia's profit and its valuation. While Nvidia's stock has fallen more than 30% from its recent peak over concerns about Deepseek and tariffs, it's still expensive at nearly 35 times earnings. That's much higher than the S&P 500, which trades at about 21 times earnings. The good news for more value-conscious investors is that there are much cheaper ways to invest in the AI megatrend. Dominion (NYSE: D), NextEra Energy (NYSE: NEE), and Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP) stand out to a few contributors as less expensive AI plays. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Reuben Gregg Brewer (Dominion Energy): There are some reasons to dislike Dominion Energy, including a dividend cut a few years ago and the lack of dividend growth in recent years. However, this giant U.S. regulated utility is working toward a stronger balance sheet, a peer-consistent payout ratio, and a return to dividend growth. Helping to power the company's progress is its monopoly in Northern Virginia, one of the largest data center markets in the world. As a regulated utility, Dominion Energy is granted a monopoly in the regions it serves in exchange for having its rates and capital investment plans overseen by state regulators. Slow and steady growth is the usual outcome, though sometimes utilities can get out over their skis. That's what happened to Dominion, but it has now reset the business so it's back on a more traditional path. The expectation is for 5% to 7% earnings growth over the foreseeable future, with dividend growth, when it resumes, likely to track along with earnings growth. AI fits neatly into the story because demand is exploding in Dominion's Virginia operations. Between July and December 2024 the company's pipeline of power requests from data centers increased 88%. Regulators are highly likely to approve capital spending associated with this demand. That will help Dominion get back to dividend growth more quickly, which will probably result in a higher valuation for the shares. With a lofty 5% dividend yield today, that makes this both a near-term income play and a long-term capital appreciation play. And AI is a key factor in all of it. Neha Chamaria (NextEra Energy): According to the latest energy report from the International Energy Agency, AI-driven data centers alone could account for almost 50% of the growth in demand for electricity in the U.S. between now and 2030. At the same time, with emissions from data centers also expected to nearly double by 2030, global tech majors are increasingly seeking cleaner sources of energy to meet their future power demands. The combination perfectly sets the stage for growth for a company like NextEra Energy, which not only owns the largest electric utility in the U.S., Florida Power & Light, but is also the world's leading producer of energy from wind and solar and a leader in battery storage. The company also has large natural gas and nuclear fleets. In renewables alone, NextEra Energy expects to develop 36.5 gigawatts (GW) to 46.5 GW of new capacity through 2027, which is more than its existing capacity in operation. The company expects the investments to drive its adjusted earnings per share higher by 6% to 8% between 2024 and 2027, and dividend per share by around 10% through at least 2026. NextEra Energy, in fact, is also deploying AI into its business. Its renewable energy arm, for instance, uses AI for land analysis to expedite discussions with landowners and regulators. In early 2025, NextEra Energy also struck an agreement with GE Vernova to build natural gas power solutions that are largely expected to support demand from data centers. With NextEra Energy stock shedding almost 20% value in the past six months, growing its dividend payout consistently, and yielding 3.5%, this one's an offbeat AI play you'd want to consider owning for the long term. Matt DiLallo (Brookfield Infrastructure): Brookfield Infrastructure is a leading global infrastructure operator. Its business spans utilities, energy midstream, transportation, and data infrastructure. The company estimates that businesses supplying more than 60% of its funds from operations will benefit from digitalization catalysts like AI. The company's data infrastructure platform is an obvious beneficiary of the AI megatrend. Brookfield operates a growing global data center platform. Those are crucial facilities in supporting the technology. The company is also investing in semiconductor fabrication facilities and owns communication towers and fiber networks that will see additional growth from AI. On top of that, Brookfield's energy midstream and utilities assets will get a boost from AI's growing power demands. Natural gas will be a crucial fuel in supporting the always-on power needs of AI data centers. That will benefit Brookfield's gas storage, transportation, and distribution businesses. Brookfield sees a massive investment opportunity across its existing infrastructure platforms and new ones related to AI infrastructure. It estimates that the world will need to invest over $8 trillion in AI infrastructure, including semiconductor manufacturing, compute-as-a-service, energy management, autonomous transportation, robotics, and other technologies over the next three years. It believes it can play a key role in helping meet this massive investment requirement. Investors haven't even begun to price in Brookfield's AI-powered upside potential. The global infrastructure operator trades at around 11 times its FFO. That's dirt cheap for a company that expects to grow by more than 10% per year. It's why Brookfield currently offers such an attractive dividend yield of nearly 5%. The company's AI-powered upside could enable it to grow its dividend toward the high end of its 5% to 9% annual target range. Before you buy stock in Dominion Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Dominion Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $524,747!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $622,041!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 153% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 21, 2025 Matt DiLallo has positions in Brookfield Infrastructure, Brookfield Infrastructure Partners, and NextEra Energy. Neha Chamaria has no position in any of the stocks mentioned. Reuben Gregg Brewer has positions in Dominion Energy. The Motley Fool has positions in and recommends NextEra Energy and Nvidia. The Motley Fool recommends Brookfield Infrastructure Partners and Dominion Energy. The Motley Fool has a disclosure policy. Nvidia Is Expensive. Here Are 3 High-Yield Artificial Intelligence Plays That Aren't. was originally published by The Motley Fool Sign in to access your portfolio
