"Reliable high-yielders are your best friends today, and they will likely remain that way for the coming years. That's especially true if they operate as midstream or as a utility. They have a rare combination of defense and growth that no other sector can match. Demand for electricity, gas, and water does not flutter when the headlines turn grim, so cash flow stays predictable and dividends stay funded."
"At the same time, two powerful trends are pushing volume through their wires and pipes faster. The AI build-out is turning data centers into power-hungry neighborhoods that run 24/7, and the ongoing energy-export boom is forcing more crude, natural gas, and natural-gas liquids through domestic infrastructure. Plus, these businesses are not very exposed to tariffs. Utility and midstream companies operate almost entirely domestically, and this gives them a degree of insulation that multinational manufacturers can only envy."
Midstream and utility companies provide defensive cash flow and growth, making them reliable high-yield investments with predictable dividends. Demand for electricity, gas, and water remains steady through downturns, keeping cash flow predictable. The AI build-out and an energy-export boom are increasing volumes through infrastructure. These businesses have low tariff exposure because they operate mainly domestically. Two companies yield over 7%. Kenon Holdings, a Singapore-based power generator in Israel and the U.S., grew sales from $373 million in 2019 to $751 million in 2024. In 2024, $625 million came from Israel and $126.3 million from the U.S. Rapid U.S. revenue growth reflects OPC’s 70% stake in CPV Group.
Read at 24/7 Wall St.
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