A new administration has taken charge in Washington, D.C., and one of its immediate priorities is bringing down energy costs for consumers. While that might be welcome news for households grappling with high utility bills, income-focused investors need to take a broader view. Betting on companies set to benefit from temporary policies could be short-sighted. Instead, those looking for stable returns over decades should focus on businesses that can weather policy changes, market cycles, and economic uncertainties. Three energy stocks—Chevron, Enterprise Products Partners, and Brookfield Renewable—stand out for their resilience and strong dividend yields.
Chevron’s Solid Foundation Ensures Stability
Lower energy prices might not seem like good news for Chevron, whose business relies heavily on oil and gas production. However, the company is integrated, meaning it also operates in refining, chemicals, and midstream transport, sectors that provide a cushion against price swings.
- Chevron’s balance sheet is among the strongest in the industry, with a low debt-to-equity ratio of just 0.16x. That allows it to take on debt during downturns without putting dividends at risk.
- The company has increased its dividend for 37 consecutive years, proving its ability to reward shareholders even in turbulent markets.
- With a current yield of 4.3%, Chevron remains an attractive option for those looking for a mix of stability and long-term growth.
A strong financial position makes Chevron a safe bet regardless of political or economic shifts.
Enterprise Products Partners Defies Energy Price Volatility
Unlike Chevron, Enterprise Products Partners operates in the midstream sector, where earnings depend on pipeline fees rather than commodity prices. Whether oil and gas prices rise or fall, Enterprise earns a steady stream of revenue by transporting energy products.
One major advantage for investors:
- The company boasts a 6.3% distribution yield, one of the highest in the sector.
- It has increased its distribution annually for 26 years, demonstrating a commitment to shareholder returns.
- Enterprise’s balance sheet is investment-grade rated, and its cash flow comfortably covers its distributions, adding an extra layer of security.
For those seeking energy exposure without the risk tied to commodity prices, Enterprise Products Partners offers an appealing alternative.
Brookfield Renewable Is Betting on the Future of Clean Energy
Brookfield Renewable presents a different kind of opportunity. While Chevron and Enterprise rely on oil and gas, Brookfield is deeply invested in renewable energy. Governments worldwide are pushing for cleaner energy, and demand for renewables is set to grow for decades.
- Brookfield’s funds from operations rose 10% in 2024, signaling strong financial health.
- The company recently raised its dividend by 5%, continuing its trend of rewarding investors.
- Its yield stands at 6.5% for partner units and 5.2% for corporate shares, making it an attractive option for income-focused investors.
Brookfield also benefits from favorable market conditions. It’s selling mature renewable assets at high valuations while picking up development-stage projects at relatively low costs. That strategy helps it grow its portfolio while maintaining a steady cash flow.
Energy Investors Should Think in Decades, Not Just Years
For investors focused on long-term income, the next few years of policy changes shouldn’t be the only factor driving investment decisions. Stability, financial strength, and reliable dividend payouts matter more in the long run. Chevron, Enterprise Products Partners, and Brookfield Renewable each offer a unique way to gain exposure to the energy sector while ensuring steady returns. Those looking for dividends that can weather any market condition should keep these stocks on their radar.
