Enbridge Inc., together with its subsidiaries, operates as an energy infrastructure company. The company operates through five segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services. The Liquids Pipelines segment operates pipelines and related terminals to transport various grades of crude oil and other liquid hydrocarbons in Canada and the United States. The Gas Transmission and Midstream segment invests in natural gas pipelines and gathering and processing facilities in Canada and the United States. The Gas Distribution and Storage segment is involved in natural gas utility operations serving residential, commercial, and industrial customers in Ontario, as well as natural gas distribution activities in Quebec. The Renewable Power Generation segment operates power generating assets, such as wind, solar, geothermal, waste heat recovery, and transmission assets in North America. The Energy Services segment provides physical commodity marketing and logistical services to refiners, producers, and other customers in Canada and the United States. The company was formerly known as IPL Energy Inc. and changed its name to Enbridge Inc. in October 1998. Enbridge Inc. was founded in 1949 and is headquartered in Calgary, Canada.

Enbridge выглядит как качественный, но уже не дешёвый защитный актив в энергетике. По оценке компания торгуется выше медианы отрасли почти по всем ключевым мультипликаторам: P/E, P/S, P/B и особенно P/FCF заметно завышены относительно сектора, что ограничивает потенциал переоценки. При этом динамика бизнеса не выглядит слабой: выручка, EBITDA, операционная прибыль и чистая прибыль в целом держатся на высоких уровнях, а EPS и прогноз EPS остаются устойчивыми. Сильной стороной остаётся рентабельность капитала: ROE и return on tangible equity выглядят неплохо, а маржа прибыли и операционная маржа сохраняются на приемлемом уровне для инфраструктурной компании. Однако по сравнению с отраслью ROA и ROI ниже, что говорит о неидеальной эффективности использования активов и инвестированного капитала. Баланс остаётся тяжёлым: debt/equity выше отраслевой медианы, долгосрочный долг велик, а ликвидность слабая — current ratio и quick ratio существенно ниже 1, что типично для капиталоёмкого бизнеса, но всё же повышает финансовые риски. Дивидендная доходность за последний год снизилась, поэтому дивидендный аргумент для оценки стал чуть менее сильным. Позитивно, что собственный капитал и активы остаются крупными и относительно стабильными, а прибыльность не демонстрирует резкого ухудшения. В сумме фундаментал поддерживает умеренно позитивный взгляд на компанию как на стабильного дивидендного игрока, но высокая оценка по мультипликаторам и долговая нагрузка сдерживают апсайд. Для инвестора это скорее история про надёжность и денежный поток, чем про сильный потенциал роста котировок. Поэтому целевой прогноз стоит слегка скорректировать вниз, сохраняя консервативный подход к уже не дешёвой оценке.

Enbridge Inc

Сильный индекс, без изменений. Быки в растерянности.

Strong index, flat. The bulls are confused.

Средний индекс, значительно вырос. Рынок на стороне быков.

Medium index, significantly up. The market is on the bulls' side.

Сильный индекс, значительно вырос. Приток средств в лонги на высоком уровне.

Strong index, significantly up. Inflow of funds into longs at a high level.

Стабильный, но дорогой инфраструктурный бизнес: прибыль и выручка держатся, однако мультипликаторы высоки, долг велик, а ликвидность слабая.

Key Points
Enbridge and Oneok both have higher dividend yields.
They back their payouts with rock-solid financial profiles.
Enbridge has a robust backlog of expansion projects.
Pipeline companies can make great investments if you want a stable income. Most pipeline companies own assets that operate under regulated revenue frameworks or long-term contracts. That gives them the steady cash flow to pay dividends and invest in growing their operations.
Enbridge (NYSE: ENB) and Oneok (NYSE: OKE) are two of the top pipeline stocks. Here's a look at which is the better buy right now.
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A head-to-head matchup
Enbridge and Oneok have two of the best dividend track records in the pipeline sector. Canada's Enbridge has paid dividends for over 70 years and has increased its payment for 31 consecutive years (in Canadian dollars). Meanwhile, Oneok has delivered more than 30 years of dividend stability and growth. While Oneok hasn't increased its payment every year during that period, it has grown its dividend by almost 100% over the past decade.
Both companies currently offer high-yielding payouts backed by rock-solid financial profiles:
Pipeline stock
Dividend yield
Leverage ratio
Dividend payout ratio
Enbridge
5%
4.5x-5.0x
60%-70%
Oneok
4.7%
3.5x
85% or below
While Enbridge has a higher leverage ratio, it still has a strong investment-grade credit rating. Further, it generates very stable cash flow, as regulated rate structures or take-or-pay contracts back more than 98% of its earnings. Enbridge also has a more diversified business model, including North America's largest gas utility franchise and a growing renewable energy platform.
Oneok has been increasingly diversifying its platform. The acquisition of Magellan Midstream a few years ago added refined products, crude oil, and export terminals to its business mix. Meanwhile, the company formed a joint venture (JV) with MPLX to build a $1.4 billion LPG export terminal, which should enter service in early 2028. Oneok has also been acquiring and developing more fee-based assets. As a result, three of its four business segments expect to generate 90% of their earnings from fee-based sources this year, with the fourth segment anticipated to generate 85% fee-based earnings.
Overall, both companies produce stable cash flows to cover their high-yielding dividends, which they further support with rock-solid financial profiles.
A look at what they have coming down the pipeline
These pipeline companies should have plenty of fuel to continue increasing their high-yielding dividends. They're each investing in organic expansion projects that should come online in the coming years and supply incremental sources of stable cash flow.
Oneok is investing about $1 billion into two JVs with MLPX (the other is building a pipeline to support the LPG export terminal). Additionally, the company is a partner in the JV building the Eiger Express Pipeline (Enbridge is also a partner). This gas pipeline should enter service in mid-2028. Oneok also has a couple of smaller projects it expects to complete over the next year (the Medford Fractionator rebuild and the Bighorn processing plant). The company also sees future opportunities to expand its gas pipeline systems to support growing power demand by AI data centers. These projects support its plans to increase its high-yielding dividend by 3% to 4% per year.
Meanwhile, Enbridge has an even larger backlog of commercially secured growth capital projects. The company has secured 37 billion Canadian dollars ($26.5 billion) in projects it expects to enter commercial service through 2030. Meanwhile, it's pursuing another CA$50 billion ($37.8 billion) of expansions it could approve through the end of the decade. Those investments include new and expanded oil and gas pipelines, utility growth projects, and new renewable power projects. This backlog supports Enbridge's expectation of growing its cash flow per share at a 5% annual rate after this year, providing the fuel to grow its dividend by up to 5% annually.
Enbridge is the better buy
While Oneok is a solid income investment, Enbridge could be even better in the future. It pays a higher-yielding dividend that could grow faster in the coming years (assuming a stable exchange rate). That could enable it to generate higher total returns. This higher-octane total return potential makes it the better buy right now.
Should you buy stock in Enbridge right now?
Before you buy stock in Enbridge, consider this:
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Matt DiLallo has positions in Enbridge. The Motley Fool has positions in and recommends Enbridge. The Motley Fool recommends Oneok. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pipeline Stock Face-Off: Is Enbridge or Oneok the Better Buy Right Now?

Kinder Morgan KMI is a leading energy infrastructure company in North America. Its natural gas pipeline network transports nearly 40% of the U.S. natural gas production. The company owns and operates nearly 78,000 miles of pipelines, 136 terminals and more than 700 billion cubic feet (Bcf) of working natural gas storage capacity.
The rising demand for U.S. natural gas, supported by liquefied natural gas (LNG) exports, is expected to benefit Kinder Morgan. In fact, the company has highlighted that its extensive natural gas transmission network will allow it to cater to the rising demand for U.S. LNG exports. KMI also added that more than 20% of its $10.1 billion project backlog is dedicated to serving the growing LNG demand. The company currently has long-term contracts to move 8 Bcf/d of natural gas to LNG facilities, and this is expected to surpass 12 Bcf/d by the end of 2028.
Additionally, the increased power generation needs driven by the shift from coal to gas and the expansion of data centers are creating an incremental demand for natural gas. Data centers utilize sophisticated servers that support high computational workloads for processing data and training models, which requires a significant amount of electricity. These demand trends align well with Kinder Morgan’s business model. Its extensive natural gas transmission network, a growing backlog of expansion projects and infrastructure positioned near key LNG export hubs should enable Kinder Morgan to benefit from the long-term growth in natural gas consumption in the United States.
Energy Sector Players to Benefit From Rising Natural Gas Demand
The rise of data centers and higher gas-fired power demand presents an opportunity for Enbridge Inc. ENB to capitalize on. Data centers require a huge amount of electricity, which is driving rapid growth in gas demand. The shift from coal to gas for power generation is increasing gas demand. Enbridge is expected to gain from the expansion of its natural gas storage facilities. ENB carries a Zacks Rank #3 (Hold) at present.
Baker Hughes BKR is well-positioned to capitalize on the rapid growth in energy demand from data centers. In response to rising data center demand, the company is actively enhancing its capabilities through organic investments in this domain. With nearly $1 billion in data center-related orders registered in 2025, the company is working toward achieving its $3 billion target over the next three years. The rise in power demand is expected to drive energy-infrastructure investments, which, in turn, will contribute to higher demand for Baker Hughes’ IET offerings. BKR has a Zacks Rank #4 (Sell) at present.
KMI’s Price Performance, Valuation & Estimates
Shares of Kinder Morgan have jumped 15.3% over the past year compared with the 18.7% improvement of the composite stocks belonging to the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, KMI trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 13.97X. This is below the broader industry average of 15.15X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KMI’s 2026 earnings hasn’t seen any revisions over the past seven days.
Image Source: Zacks Investment Research
KMI currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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Rising LNG Exports and Power Demand to Benefit Kinder Morgan

Dividend stocks can be a great source of income for investors, especially retirees. That's because dividend stocks pay out cash distributions regularly, usually once per quarter.
While dividend stocks can be a great source of income, they can also be an excellent way to grow your wealth over time. That's because those companies that consistently pay out dividends must show strong discipline in managing their cash to ensure they can make regular dividend payments to investors. Not only that, but dividend-paying companies tend to outperform the broader market. According to Royal Bank of Canada's Global Asset Management division, from 1986 through 2016, dividend-paying companies returned investors an average of 9.9%, outperforming the 6.6% return in the broader market.
Three companies with solid dividend yields that you can invest in forever include Morgan Stanley (NYSE: MS), U.S. Bancorp (NYSE: USB), and Cincinnati Financial (NASDAQ: CINF).
1. Morgan Stanley
Morgan Stanley is a financial services firm with businesses across investment banking, wealth management, and securities trading. The company is a good dividend stock because it has diversified its revenue streams. Before 2020, the company relied primarily on investment banking and trading to generate revenue.
Seeing how volatile the business's earnings were, CEO James Gorman looked to diversify the company's revenue so it could perform well in all kinds of markets. The bank made a splash last year, making not one but two major acquisitions. The bank acquired E*TRADE and Eaton Vance, spending roughly $20 billion to improve its profitability in all kinds of market conditions.
E*TRADE gives the firm a consistent revenue stream from trading commissions and fees. This revenue stream can perform quite well when market volatility is high and investors engage in a lot of trading activity. Eaton Vance gives it a revenue stream that can do well in all market conditions. Wealth management will collect fees on total assets under management (AUM) and can provide it with revenue.
This consistent revenue stream should help the company maintain and even grow its dividend for the years to come. The bank doubled its dividend payout after the Federal Reserve lifted dividend restrictions on banking sector stocks earlier this year, and the stock currently yields investors a healthy dividend of 2.1% annually.
2. U.S. Bancorp
U.S. Bancorp is a well-run bank that focuses on risk management and strong credit quality. Its focus on high-quality loans and conservative loss provisions are one reason why it is known as one of the best-run super-regional banks in the U.S. U.S. Bancorp is also one of Berkshire Hathaway's top 10 largest holdings.
What makes U.S. Bancorp a solid dividend stock is its consistent earnings over the past decade. The stock currently trades at a price to tangible book value (equity minus intangible assets and goodwill) of 2.4, putting it at a more expensive valuation than other banking competitors.
However, it trades at a premium for a good reason. The bank has maintained stellar profitability ratios compared to its peers. Over the past 10 years, U.S. Bancorp has maintained an average return on equity (ROE) of 15.2% and an average return on assets (ROA) of 1.4% -- beating out other major banking competitors, including JPMorgan Chase, Bank of America, and Wells Fargo.
U.S. Bancorp has displayed excellent risk management and credit quality. Additionally, it has also built up a strong payments business, which should drive strong future growth for the bank. The bank currently gives investors an attractive yield of 3.1%.
3. Cincinnati Financial
Insurance companies can be a great source of income because of their consistent cash flow generation. That's a big reason why Warren Buffett has described insurance as one of his favorite industries to invest in.
Cincinnati Financial is an insurer focused on writing property and casualty insurance policies. The company mainly makes money from commercial insurance policies or those policies for businesses. It also underwrites personal lines of policies like auto insurance and homeowners insurance.
It has done a great job of writing profitable policies for decades now, and that is why it has been able to increase its dividend payout so consistently. From 2012 through 2020, the company has grown cash flow from its property-casualty policies at an 11.5% compound annual growth rate.
The company has invested heavily in its technology and AI to underwrite better policies and handle claims quickly and efficiently. These investments help it stay ahead of its competition, which has seen younger insurance companies looking to leverage AI and big data to disrupt the entire industry.
Cincinnati Financial has shown an impressive history of consistently increasing its dividends. The company is a part of the exclusive Dividend Kings club -- stocks that have increased dividend payouts for at least 50 years straight. The company has increased its dividend 61 years consecutively, a feat that only eight other companies have achieved. It also sports a solid dividend yield of 2.1%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Dividend Stocks You Can Buy and Hold Forever

Key Points
Energy Transfer and Enbridge’s “toll road” pipelines will generate steady profits.
Chevron’s scale and diversification will insulate it from choppy oil prices.
Brent crude oil hit a multi-year high of $119.50 per barrel in March, following the initial outbreak of the Iran war. The conflict disrupted shipments through the Strait of Hormuz, which accounts for roughly a quarter of the world's maritime oil trade, and boosted many oil stocks.
But as of this writing, Brent crude trades at about $87 per barrel. The situation in the Middle East remains volatile, but intermittent peace talks, ceasefires, and discussions to fully reopen the Strait of Hormuz have all brought oil back down from its recent peak.
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That pullback hurt upstream companies like Occidental Petroleum (NYSE: OXY), which benefit the most from soaring oil prices. However, it's still a great time to invest in midstream companies, which operate pipelines and other infrastructure to transport oil, as well as in the world's largest integrated energy giants. These three oil stocks fit that description: Energy Transfer (NYSE: ET), Enbridge (NYSE: ENB), and Chevron (NYSE: CVX).
Why are Energy Transfer and Enbridge still good investments?
Energy Transfer operates more than 140,000 miles of pipeline across 44 states. Enbridge operates 70,000 miles of pipelines and smaller feeder lines across North America.
Energy Transfer, based in Texas, transports more natural gas than crude oil through its pipes. Enbridge, based in Canada, transports more crude oil than natural gas. Energy Transfer's infrastructure is concentrated in the southern U.S., while Enbridge's pipelines connect Canada to the eastern seaboard, the Midwest, and the Gulf Coast regions in the U.S.
Both of these companies are well insulated from volatile prices because they charge upstream and downstream companies "tolls" to use their infrastructure. As long as those resources flow through their pipes, they can generate plenty of cash to fund their distributions and dividends.
Energy Transfer, which operates as a master limited partnership (MLP), blends its income with a return of capital to pay a high forward distribution yield of 7%. Enbridge, which operates as a standard Canadian corporation, pays a forward dividend yield of 5.1%.
Both stocks are also still reasonably valued because they didn't rally as much as other oil stocks in response to the Iran war. Energy Transfer trades at just 11 times its forward earnings per unit (EPU), while Enbridge trades at 26 times forward earnings. Therefore, these two pipeline stocks are great ways to profit from the oil market without too much exposure to choppy oil prices.
Why is Chevron worth buying?
Chevron, one of the world's largest integrated energy companies, operates upstream, midstream, and downstream businesses. It has a presence in 180 countries, but it gets most of its oil from the U.S., Kazakhstan, and Australia rather than from the Middle East.
Chevron's scale and diversification make it an evergreen stock to hold even if oil prices collapse. While declining crude oil prices will hurt its upstream business, they could help its downstream business by reducing its input costs. Its midstream business should also continue to grow regardless of near-term swings in the oil market.
That's why Chevron has raised its dividend annually for 39 consecutive years. If it maintains that streak for 50 years, it will become a Dividend King. It currently pays a forward yield of 3.8%.
Chevron expects to increase its oil and gas production by 2%-3% annually through 2030. That growth will be fueled by the expansion of its Tengiz Field in Kazakhstan, upgrades for its biggest oil field in the Permian Basin, new projects in Guyana (one of the world's fastest-growing oil regions), deepwater projects across the Gulf of Mexico, and natural gas projects in Australia. In other words, it still has plenty of irons in the fire.
From 2025 to 2028, analysts expect Chevron's EPS to grow at a 24% CAGR. Its stock still looks like a bargain at 12 times this year's earnings, and it's a stock I'd be comfortable holding for the long term, regardless of what happens to oil prices this year.
Should you buy stock in Energy Transfer right now?
Before you buy stock in Energy Transfer, 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 Energy Transfer 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 $439,038!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,277,804!*
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Leo Sun has positions in Energy Transfer. The Motley Fool has positions in and recommends Chevron and Enbridge. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Brent Oil Just Fell Below $90 a Barrel. 3 Top Oil Stocks to Buy Now.

Enterprise Products Partners EPD units are trading close to their 52-week high of $40.17, closing at $37.81 on June 5. Over the past year, the EPD stock has gained 19.2%, outperforming the industry’s 17.9% growth. Shares of its peers, Kinder Morgan KMI and Enbridge Inc. ENB, have grown 15.1% and 22.9%, respectively.
Image Source: Zacks Investment Research
The partnership owns and operates a midstream asset network that transports crude oil, natural gas, natural gas liquids and refined products across North America. It generates stable, fee-based revenues backed by long-term contracts that provide predictable cash flows.
While price performance demonstrates the attractiveness of a stock to some extent, it is prudent to closely assess the stock’s fundamentals before arriving at an investment decision.
Enterprise’s Pipeline of Major Capital Projects
In its latest earnings presentation, Enterprise highlighted that it has major capital projects worth $5.3 billion under construction, which are expected to begin operations through 2026 and 2027. These growth projects are backed by favorable energy market fundamentals, including increased hydrocarbon production from the Permian Basin and higher natural gas demand from rising LNG exports and the rapid expansion of AI infrastructure.
The partnership anticipates U.S. oil production to reach 14.5 million barrels per day (BPD), while NGLs and natural gas production are expected to grow to 9.1 million BPD and 130.8 billion cubic feet per day (Bcf/d) by 2030, with the Permian Basin becoming one of the largest drivers of future volume growth. EPD has several growth projects under construction to capitalize on this trend, such as the Mentone West 2 processing plant and gas processing plants in Midland and Delaware, among others. Additionally, EPD has expansion projects under construction, which increase its ability to collect, transport and export hydrocarbons.
Since many of these projects are expected to enter service in 2026 and 2027, they should contribute to EPD’s earnings and cash flows, supporting increased profitability. The partnership generates stable, fee-based revenues that result in predictable cash flows across business cycles.
Image Source: Enterprise Products Partners L.P.
EPD’s Strong Financial Position Supports Returns to Unitholders
Enterprise has a strong balance sheet with nearly $3.3 billion in consolidated liquidity, which is comprised of liquidity available under its credit facilities and unrestricted cash on hand. The strong liquidity position enhances its financial flexibility and supports sustainable distribution growth. In the first quarter of 2026, the partnership announced a distribution of 55 cents per common unit, an increase of 2.8% year over year. This marks the partnership’s 27th consecutive year of distribution growth.
Additionally, Enterprise believes that its discretionary free cash flow could reach up to $1 billion in 2026 despite an increase in its growth capex. In the near term, the partnership plans to allocate free cash flows toward growing distributions, unit buybacks and debt reduction. EPD's robust liquidity and healthy free cash flow generation should enable it to capitalize on growth opportunities while prioritizing returns to unitholders and debt reduction, strengthening its balance sheet.
Valuation Snapshot
Considering the valuation snapshot, EPD is currently considered cheap on a relative basis. The stock is trading at a trailing 12-month Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization (EV/EBITDA) of 11.5x, which is a discount compared with the broader industry average of 13.64x. Notably, Kinder Morgan and Enbridge currently trade at a trailing 12-month EV/EBITDA of 14.07x and 17.3x, respectively.
Image Source: Zacks Investment Research
Final Verdict: Time to Buy or Hold?
Enterprise is expected to generate stable earnings and cash flows backed by its long-term contracts. The partnership’s pipeline of growth projects, backed by strong energy market fundamentals, should support higher earnings and cash flows in the coming years. Additionally, the partnership’s free cash flow growth should support sustainable distribution growth and opportunistic unit buybacks.
The EPD stock offers a compelling mix of stable returns and long-term growth potential. Given that the stock is currently undervalued, investors should consider buying the EPD stock, which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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Enterprise Products Rises 19% in a Year: Is it the Right Time to Buy?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Global X MLP & Energy Infrastructure ETF (Symbol: MLPX) where we have detected an approximate $153.0 million dollar outflow -- that's a 4.2% decrease week over week (from 49,287,506 to 47,207,506). Among the largest underlying components of MLPX, in trading today TC Energy Corp (Symbol: TRP) is up about 0.5%, Enbridge Inc (Symbol: ENB) is off about 0.4%, and Kinder Morgan Inc. (Symbol: KMI) is relatively unchanged. For a complete list of holdings, visit the MLPX Holdings page » The chart below shows the one year price performance of MLPX, versus its 200 day moving average:
Looking at the chart above, MLPX's low point in its 52 week range is $57.66 per share, with $78.36 as the 52 week high point — that compares with a last trade of $73.85. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further MLPX Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Global X MLP & Energy Infrastructure ETF Experiences Big Outflow

Enterprise Products Partners LP EPD is a leading midstream player and therefore has a resilient business model. EPD has a pipeline network that spans more than 50,000 miles, transporting oil, natural gas, refined products and other commodities. The partnership generates stable fee-based revenues from the midstream assets as the assets are booked by shippers for a long term.
Due to the resilience of its business model, the partnership has been able to return capital to unitholders on an ongoing basis. Since its IPO, Enterprise Products has returned billions of dollars to unitholders through both repurchases and distributions. Also, EPD has increased distributions for 27 consecutive years. Thus, the partnership has successfully kept cash flow steady at all business cycles.
Investors should know that Enterprise Products has a backlog of key capital projects valued in billions that are currently under construction. The midstream company has secured additional cash flows, further protecting future distribution payments. Thus, income investors should keep an eye on the stock.
KMI & ENB Also Focus on Returning Shareholders’ Capital
Kinder Morgan Inc. KMI and Enbridge Inc. ENB are two leading midstream companies, backed by stable business models. Both KMI and ENB have predictable cash flows that are supported by fee-based revenues. For the last nine consecutive years, KMI has increased its dividend payments.
ENB has rewarded shareholders with $38 billion over the past five years. In the next five years, ENB has a plan of returning $40 billion to $45 billion in the coming five years.
EPD’s Price Performance, Valuation & Estimates
Units of EPD have gained 21.3% over the past year compared with the 13.8% improvement of the composite stocks belonging to the industry.
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From a valuation standpoint, EPD trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 11.58X. This is below the broader industry average of 11.84X.
The Zacks Consensus Estimate for EPD’s 2026 earnings estimate has seen upward revisions over the past 30 days.
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Enterprise Products currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Enterprise Products: Steady Cash Flows Support Long-Term Income

Kinder Morgan, Inc. KMI generates revenues by transporting crude oil, natural gas, natural gas liquids, carbon dioxide and other products through its midstream assets across North America, notably moving nearly 40% of all U.S. natural gas production. The company generates predictable, fee-based cash flows mainly through long-term take-or-pay contracts, where shippers pay to reserve midstream capacity whether utilized or not. This reliable business model ensures steady profitability and positions KMI to consistently return capital to its investors.
Kinder Morgan has consistently rewarded its shareholders by increasing its dividend for nine consecutive years. From 2021 through 2025, the midstream energy player returned $21.7 billion to investors through dividends and share buybacks. For 2026, KMI expects to return $2.7 billion in dividends.
Kinder Morgan plans to enhance its future cash flows through several growth projects. Since the beginning of 2024, KMI has added $10.3 billion worth of initiatives to its backlog, with current ongoing projects valued at $10.1 billion. Roughly 16% of these projects are scheduled to become operational by the end of 2026, while the remaining capital-weighted projects are expected to come online around the first quarter of 2028. These strategic infrastructure additions are designed to drive the free cash flow and enhance shareholder returns over the long term.
Are EPD & ENB Focused on Investor Returns?
Enterprise Products Partners L.P. EPD and Enbridge Inc. ENB generate stable fee-based revenues to reward their investors.
Since its Initial Public Offering, Enterprise Products has returned $63 billion to its unitholders through LP distributions and common unit buybacks. The partnership has also increased its dividend for 27 consecutive years. EPD is advancing $5.3 billion in secured capital projects aimed at enhancing future cash flow and sustaining current distribution levels.
Enbridge has returned $38 billion to its shareholders over the last five years and expects to return $40-$45 billion over the next five years. To increase its future cash flow and sustain shareholder returns, ENB is advancing a $40-billion secured capital backlog across its liquids, natural gas and power franchises.
KMI’s Price Performance, Valuation & Estimates
Kinder Morgan shares have gained 11.9% over the past year compared with 18.5% growth of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, KMI trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 13.97X. This is below the broader industry average of 15.11X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KMI's 2026 earnings has been unchanged over the past seven days.
Image Source: Zacks Investment Research
KMI currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can Kinder Morgan Maintain Its Dividend Growth & Share Buybacks?

Key Points
The on-again, off-again peace talks in the Middle East have, once again, whipsawed oil prices.
While newsworthy today, energy prices have always been volatile.
Most investors should err on the side of caution in the energy patch with stocks like ExxonMobil, Chevron, Enterprise, and Enbridge.
The geopolitical conflict in the Middle East has left the world short of oil and natural gas. These are vital commodities, and a shortage drives prices higher. The most recent breakdown in peace talks has left investors worried and pushed oil prices up again.
However, as events in the conflict have unfolded over the last few months, it is just as reasonable to expect good news to push oil prices lower. Energy industry executives are warning that energy prices aren't reflecting industry fundamentals, suggesting higher prices are possible. But right now, it is clear that emotions driven by news flow are what are moving energy investments. With so much uncertainty, caution is probably warranted.
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The safest ways to play in the oil patch
The volatile swings in energy prices related to the geopolitical conflict in the Middle East may be eye-opening to some investors. However, they aren't actually unusual in the energy sector. It has always been a highly volatile segment of the market. That said, oil and natural gas are vital to the world's normal functioning, so most investors should have some exposure.
You could lean into oil price volatility with a pure-play driller like Devon Energy (NYSE:DVN). It is well-positioned to benefit from high energy prices because its production is U.S.-based, so it isn't directly affected by the Middle East conflict. However, when energy prices eventually fall, as they always have historically after a spike, Devon's business will be hard hit. Most investors will be better off with diversified energy stocks like ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX).
Exxon and Chevron have exposure to the entire energy value chain, including production, transportation, and refining. This helps to soften the peaks and valleys inherent in the volatile sector. Moreover, they both have rock-solid balance sheets, with debt-to-equity ratios of roughly 0.2x and 0.25x, respectively. They have the lowest leverage among their integrated peers. The combination of diversification and financial strength has allowed each of these global energy giants to increase their dividends annually for decades.
So when oil prices eventually turn lower, you can watch your dividend checks instead of stock prices. Exxon's dividend yield is 2.7%, and Chevron's is 3.8%.
You could also sidestep oil prices if you wanted
The interesting thing about the energy sector is that there is a middleman in the mix that isn't as impacted by energy prices. Businesses like Enterprise Products Partners (NYSE:EPD) and Enbridge (NYSE:ENB) charge fees for transporting energy. The volume that is moving through their energy infrastructure systems is more important than the price of the energy being moved. Since energy is so important to the world economy, volumes tend to remain high regardless of energy prices and even tend to be strong during recessions.
That's how Enterprise and Enbridge have also managed to increase their dividends annually for decades. That said, the reliable cash flows these two midstream businesses generate support much more attractive dividend yields. Enterprise's distribution yield is 5.8%, while Enbridge's dividend yield is 5%.
The one problem with these two pipeline operators is that they are boring. Their yields will make up a large portion of your total return over time, with slow business growth fairly normal for the sector. However, if you are a dividend investor, that probably won't bother you. And you'll have energy exposure without taking on material commodity risk.
Things could get worse before they get better
The CEOs of Exxon and Chevron are both warning that oil prices aren't reflecting actual market conditions in the energy sector. While that suggests oil prices could rise from here, it also highlights that emotions are driving the market right now, not fundamentals. That should worry long-term investors, and the best way to deal with it is to err on the side of caution with diversified industry giants like Exxon and Chevron, or to sidestep commodity price risk with investments like Enterprise and Enbridge.
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Reuben Gregg Brewer has positions in Enbridge. The Motley Fool has positions in and recommends Chevron and Enbridge. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Oil Stocks Are Spiking on the News That U.S.-Iran Peace Talks Have Crumbled. Here's What Investors Need to Know.

Kinder Morgan, Inc. KMI is currently undervalued, with a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 13.88x. This is below the broader industry average of 14.94x and lags key midstream players like Enbridge Inc. ENB and The Williams Companies Inc. WMB, which are trading at 17.01x and 17.56x EV/EBITDA, respectively.
Image Source: Zacks Investment Research
Now, the key question for investors is how to assess KMI, given its undervaluation. To make a well-informed decision, it is crucial to first analyze the fundamental strengths and weaknesses of this leading energy infrastructure company.
Role of Take-or-Pay Agreements in KMI’s Stability
Kinder Morgan operates an extensive network of pipelines spanning 78,000 miles, transporting natural gas, gasoline, crude oil and carbon dioxide. In addition, the company owns 136 terminals that store a variety of products, including renewable fuels, petroleum products, chemicals and vegetable oils.
As a leading midstream service provider, Kinder Morgan’s pipeline and storage assets are secured under long-term take-or-pay contracts. These contracts ensure that shippers pay for the capacity reserved, whether they utilize it or not, which provides a steady stream of revenues. This structure allows Kinder Morgan to generate stable earnings, primarily insulated from fluctuations in the volume of natural gas transported, offering significant stability to its bottom line.
Image Source: Kinder Morgan, Inc.
Natural Gas Demand Surge Brightens KMI’s Growth Outlook
Being a leading midstream energy company, Kinder Morgan is well-positioned to benefit from the increasing demand for natural gas both in the United States and worldwide. LNG export is rising in the United States, and with KMI being responsible for transporting roughly 40% of all the gas to the liquefaction terminals, the company’s outlook seems bright.
KMI, on its first-quarter 2026earnings call expressed expectations that U.S. natural gas demand would surge, driven by rising electricity demand from data centers. Kinder Morgan expects the demand to jump 27% to 150 billion cubic feet per day by 2031 from this year's level.
Time to Bet on KMI Stock?
Investors should also note that the pipeline player’s backlog for growth projects is valued at a massive $10.1 billion as of March 31, 2026. On the call, the company mentioned that the first quarter of 2028 is going to be the average in service date. Thus, KMI stands to benefit from incremental cash flows, as natural gas accounts for roughly 92% of its backlog.
All these positive developments are getting reflected in KMI’s price chart. Over the past six months, the stock gained 15.7%, outperforming the industry’s 14% improvement. Over the same time frame, WMB and ENB surged 18.6% and 13.8%, respectively.
Image Source: Zacks Investment Research
Considering Kinder Morgan remains undervalued and its business model is supported by stable fee-based revenues, similar to WMB and ENB, now could be an ideal time for investors to buy the stock. KMI carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.