The stock market has sung wildly in recent weeks. S&P 500 President Donald Trump entered the bear market area (20% decline from recent peaks) briefly after a brutal stretch to start the month after the decision to carry a huge mutual tariff on imports. However, his decision to stay for 90 days sent stocks in one of the best days since World War II.
The action of this whipsaw by the market makes it difficult to know how to invest because many economists believe that the quantity that the administration has declared can lead to a major recession. While an economic recession can significantly affect many companies, others have more recession resistant businesses.
Enterprise product partner (EPD 1.17%,, Nextra energy (Nee -1.51%,And Bruckfield infrastructure (BIPC 1.93%, (BIP 2.80%, Stand out for some fool.com contributors for the durability of your business model. Because of that, they should have no problem in paying and developing their high yielding dividends.
6.9% yield of enterprise products partners is rock solid
Ruben Greg Brever (Enterprise Products Partners): With the increase in 26 annual delivery, enterprise products partners have a proven track record of well rewarding investors. Now, add 6.9% distribution yield to the Midstream Master Limited Partnership (MLP), and you can see why you want to buy it. He said, I like a lot about the enterprise, looking at the current turmoil of the market.
For the beginning, energy is a requirement of modern life. While energy prices may be unstable, the energy infrastructure that owns the enterprise produces reliable cash flow due to the toll-toll nature of the midstream sector. Therefore, as long as the demand for energy remains strong, which is extremely likely, the enterprise will continue to continue adequate distributable cash flow to pay its distribution. On that score, the distributionable cash flow of the owner of the pipeline covered its distribution up to 1.7x in 2024. It leaves a lot of space for adversity before a cut.
Meanwhile, the balance sheet of the enterprise is investment-rated, and the company has 7.6 billion dollars of capital investment projects in works. Therefore, in one of the worst conditions, it can bend on its balance sheet to support its distribution if he had to do it. And in a best case, it is an opportunity to increase its distribution in the coming years as new investment starts adding to cash flow. In all, there is no difference on Wall Street, the enterprise seems to be ready to stick to investors very well to pay.
Stable cash flow and stable growth
Matt Dilalo (Nextra Energy): Nextra Energy operates one of the country’s largest power utilities (Florida Power and Lite), which produces a very stable cash flow supported by the government -regulated rates and stable electricity. The company also has a large portfolio of Energy Infrastructure Assets (Nextra Energy Resources) that produces stable cash flow supported by fixed-per-rate contracts for a long time. This business model produces tremendous sustainable cash flow which is highly resistant to economic recession.
For evidence, we can see the dividend of Nextra Energy. Utility has increased its payment every year For the last three decades, Which included Many recession.
Nextra energy is fully expected to increase its high-up-ripped dividend (about 3.5%). Its goal is to increase its payment by about 10% annually through at least 2026. Thanks to the bottom-the-average dividend payment ratio and further visual increase, it can distribute that strong growth rate.
Utility is expected to increase your adjusted income from 6% to 8% per share annual rate Through 2027 from last year’s base line. The development of powering is a huge investment in FPL and its energy resource segment in creating a new renewable energy-generating capacity.
Meanwhile, this is a great increase further. Electricity demand is accelerating in America, Operated By onshoring of manufacturing, electric vehicles and artificial intelligence (AI) data centers. The forecasts said that the demand for electricity would increase by 55% by 2040. Of Opportunities to invest in expanding your power platform.
Stable growth should continue
Neha Chamariya (Brookfield infrastructure): Brookfield Infrastructure has increased its dividend every year for 16 consecutive years. Importantly, those dividends were always supported by increasing cash flows, one of the biggest reasons I believe is one of the few stocks that can reward you, whether stock markets go.
Brookfield Infrastructure increased the amount from a mixed annual growth rate (CAGR) of 9% between 2009 and 2024 per unit operation (FFO) per unit operation (FFO) in CAGR of 15% during the period. This means that the company has generated adequate cash flow to invest in development and pay large dividends. Brookfield infrastructure has a reason behind solid FFOs and dividend streaks.
Brookfield infrastructure is a large base of assets that are mostly regulated, such as utilities, rail and toll roads, midstream energy and data centers. Therefore, about 85% of its FFO is regulated or contracted and indexed for inflation. This means that Brookfield infrastructure can generate stable cash flow despite paying an economy fare, making this stock a complicated bet during indefinite time.
Brookfield infrastructure also continuously recycle capital, sells property as they mature and use income to buy new assets. For example, in March, it sold 25% stake in the US gas pipeline. This month, it made a deal to get midstream energy property from colonial enterprises.
The steady flow of cash flow from its property and income from sales of mature assets have not only helped Brookfield Infrastructure to increase their business, but also continuously rewarding shareholders. The yield of 4.9% with the corporation’s shares, the company’s partnership units give 6.2% yield, and the company targets 5% to 9% annual dividend growth, Brookfield infrastructure is a dividend stock to double the unstable time.
Matt Dilalo has positions in Brookfield Infrastructure, Brookfield Infrastructure Partners, Enterprise Products Partners and Nextra Energy. Neha Chamariya has no situation in any stock mentioned. There is no situation in any stock mentioned by Ruben Greg Brever. The micle flower has a position and recommended Nextra energy. Motale flowers recommend Bruckfield infrastructure partners and enterprise products partners. The Motley Fool has a disclosure policy.