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.
And if that’s not enough, they also come with stellar dividend yields. The following two yield over 7% each.
Kenon Holdings (KEN)
Kenon Holdings (NYSE:KEN) is a Singapore-based company that operates power generation facilities in Israel and the U.S. OPC is the core operating asset.
Kenon Holdings has been slowly increasing its sales from $373 million in 2019 to $751 million in 2024. The vast majority of its sales come from Israel. In 2024, $625 million of its sales came from Israel and $126.3 million from the U.S. However, U.S. growth has been exceptional. U.S. revenue grew 12.95% in 2022, 27.36% in 2023, and a stunning 73.16% in 2024.
In comparison, Israel-derived revenue grew only 0.99%, falling from 19.77% in 2023. This is mainly due to OPC holding a 70% stake in CPV Group, which is a limited partnership for constructing and operating power plants in the U.S.
The U.S. and Israel are both major data center hotspots and are expected to see increasing demand for electricity. The U.S., in particular, is seeing a surge of data center build-outs, and it does not have the capacity to comfortably power them. As a result, the Federal government and various local governments are aggressively expanding capacity. KEN stock is already capturing tailwinds.
The dividend yield is 10.83%. The payout ratio is 48%.
Energy Transfer LP (ET)
Energy Transfer LP (NYSE:ET | ET Price Prediction) is a publicly traded limited partnership that owns and operates a diversified portfolio of energy assets. The main focus is on complementary natural gas operations and midstream energy infrastructure, meaning fee-based earnings constitute its bottom line.
It owns 140,000 miles of pipelines and dozens of storage terminals that move natural gas, crude oil, propane, and gasoline from where they’re produced to where they’re needed.
Midstream companies are seeing a sharp increase in demand due to the export boom to Europe. Many European countries no longer find imports from Russia or from the Middle East (due to the Red Sea crisis) worthwhile. Instead, they are importing energy resources from North America, and this company is a major beneficiary due to the increased volume.
Revenue has grown from $54.2 billion to $82.67 billion in 2024. Debt is quite elevated at $60.56 billion in 2024, and interest rate cuts starting this month can help boost the bottom line. EBITDA has also grown from $10.5 billion in 2019 to $15.4 billion in 2024.
ET stock yields 7.53% and the forward payout ratio is 85.66%.
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