How to Nab 6.3% Yields in the Energy Sector Like a True New Yorker

Alright, folks, if you’re looking to cash in on some serious yields—up to 6.3%—you might want to check out the energy sector. This place is bustling, kind of like Times Square on a Saturday night. And trust me, even the most cautious dividend investors should dip their toes in these energy-filled waters.

Why Boring Can Be Profitable

Let’s kick things off with the “steady eddies” of the energy world—midstream businesses. Think of them like the subway of the oil and gas world, moving stuff from point A to B without much fuss. Major players here include Enterprise Products Partners and Enbridge. These guys own pipelines and other infrastructure necessary for transporting oil and gas globally.

• Enterprise Products Partners
  • Today’s Change: 4.73% ($1.56)
  • Price: $34.66
  • Market Cap: $72B
  • Dividend Yield: 6.57%

Now, these companies make their dough off fees, not oil prices. Energy demand stays high even when prices drop, so it’s cash-flow city. Enbridge’s dividend growth has been a constant for 30 years. Enterprise has been upping its distribution for 27 years. If you want high-yield reliability, these stocks are your go-tos.

Betting on the Big Shots: TotalEnergies

Feeling a bit adventurous? Then take a look at TotalEnergies, an energy titan that does it all—upstream, downstream, and everything in between. This company isn’t just sitting on its oily laurels. It’s diving into clean energy before the world even fully wakes up to it.

• TotalEnergies
  • Today’s Change: 3.53% ($2.54)
  • Price: $74.42
  • Market Cap: $156B
  • Dividend Yield: 6.59%

TotalEnergies is utilizing its oil profits to fund a shift toward renewable energy, which isn’t just smart—it’s essential as demand changes. With a juicy 5.3% yield, it’s a darn good deal. Especially when you remember that BP and Shell cut their dividends in 2020.

Wrapping It Up With a Cherry on Top

Sure, the energy sector is as volatile as New York weather, but don’t let that scare you off. Good dividend investors know a hidden gem when they see one. Enterprise and Enbridge offer stability and impressive yields. Meanwhile, TotalEnergies offers a splash of excitement with its forward-thinking approach.

Reuben Gregg Brewer, who’s got a stake in Enbridge and TotalEnergies, knows a thing or two about diving into energy stocks. And hey, so does The Motley Fool, which loves a good Enbridge recommendation.

So, lace up your boots and get ready to step into the energy sector. Who knows, you might find your next big financial win right there.

Disclosure: The Motley Fool has positions in and recommends Enbridge. They also give a nod to BP and Enterprise Products Partners. Got a question? Check out their disclosure policy.