In search of stable returns: Three stocks in focus of the energy transition

The global transition from fossil fuels to cleaner alternatives is a broad topic in the energy sector that has attracted attention for years. Despite slow progress, this development offers exciting investment opportunities – especially for passive income investors who focus on high-dividend stocks. Particularly interesting at the moment are the stocks of Enbridge, TotalEnergies, and Brookfield Renewable. These companies offer attractive opportunities for investors seeking a stable source of income in the energy sector that could endure for decades to come. Enbridge currently generates about 50% of its EBITDA from oil pipelines and 25% from natural gas pipelines. This mix has changed due to the acquisition of natural gas distribution companies. The supply segment increased from 12% to 22% of EBITDA, with a constant small share of 3% from renewable energy. Enbridge aims to provide the energy the world needs as it changes. Natural gas acts as a transition fuel, but the company also focuses on renewable energy. It is expected that in the coming decades, there will be sufficient time to expand these business areas. Enbridge has an investment-grade credit rating, has continuously increased its dividend for 30 years, and currently offers a dividend yield of 6.4%. In contrast to Enbridge, which operates in the midstream sector and generates stable, fee-based revenues, TotalEnergies offers more influence on the commodity sides of the energy sector. As one of the largest integrated energy companies worldwide, TotalEnergies operates in a wide range of areas from oil and gas production to chemicals and refining. However, the variability of oil prices adversely affects the stock price, which recently pushed the dividend yield up to 5.9%.