The equity market has been highly volatile, stirred by growing concerns over a potential economic slowdown. The macroeconomic uncertainty stemming from President Donald Trump’s reciprocal tariff policies has dampened investor sentiment.
Despite persistent volatility, income investors still have reasons to stay optimistic. High-quality dividend stocks continue to offer a reliable source of income, and some stand out for their attractive yields and the strong vote of confidence they’ve received from Wall Street analysts.
Two such names worth considering are Energy Transfer (ET) and Brookfield Renewable Partners (BEP). Both companies offer resilient dividend yields north of 7%, making them appealing in today’s turbulent climate. And more importantly, these stocks carry “Strong Buy” consensus ratings.
Dividend Stock #1: Energy Transfer
Energy Transfer (ET) is a dependable stock to generate steady yield despite volatility due to its stable cash flow model, expanding infrastructure footprint, and generous dividend yield. The company operates one of the most extensive energy transportation networks in the U.S., moving and storing natural gas (NGK25), crude oil (CBM25), and natural gas liquids (NGLs) across key intrastate markets. Beyond just transporting energy, Energy Transfer also sells natural gas to a diverse range of customers, including electric utilities, industrial end-users, and energy marketers.
The strength behind its resilient distributable cash flow is its fee-based businesses. This business structure reduces its exposure to the volatility of commodity prices and ensures more predictable, long-term cash flows. Thanks to its solid financials, Energy Transfer has steadily increased its dividend over the past several years. Recently, it increased its quarterly cash distribution by 3.2%.
Energy Transfer aims to maximize profitability by securing long-term agreements with producers, increasing asset utilization, and driving down operational costs. In addition to growing organically, it has been actively expanding through strategic acquisitions. The 2024 acquisition of WTG Midstream Holdings bolstered its presence in the resource-rich Midland Basin, adding approximately 6,000 miles of gas-gathering pipelines.
With its robust infrastructure stretching across all major U.S. energy supply basins and access to domestic and export markets, Energy Transfer is well-positioned to deliver consistent cash flow. Its fee-based business model helps shield it from commodity price swings, adding stability. As a result, Energy Transfer plans to grow its dividend in the range of 3% to 5% per year.
Given its resilient business model and solid growth, it’s no surprise that Wall Street analysts are optimistic about the company’s future and maintain a consensus rating of “Strong Buy.” Moreover, Energy Transfer stock offers a high forward yield of about 8%.
Dividend Stock #2: Brookfield Renewable Partners
Brookfield Renewable Partners (BEP) is a compelling, high-yield investment opportunity to capitalize on the transition toward clean energy. With a forward dividend yield of 7.3% and a long-standing track record of consistent growth, the company offers an attractive blend of income and long-term potential.
Brookfield Renewable Partners operates large publicly traded renewable power platforms with a portfolio of roughly 46,200 megawatts of operating capacity. Over 98% of that capacity comes from renewable sources. In addition, Brookfield Renewable has an impressive development pipeline, positioning it well to capitalize on the rising global demand for clean energy.
Brookfield Renewable Partners invests directly in renewable infrastructure and collaborates with institutional and joint venture partners, spreading risk and enhancing capital efficiency. Moreover, it manages revenue volatility through a mix of short-, medium-, and long-term contracts.
The company’s majority of electricity generation is contracted, with about 70% of its revenues indexed to inflation. This structure helps ensure predictable cash flow and provides a solid foundation for consistent dividend growth. Its ability to generate solid funds from operations (FFO) enabled it to consistently grow its dividend by at least 5% for 14 consecutive years.
Recontracting is another key growth engine for the company. As older contracts expire, Brookfield Renewable has been able to replace them with new agreements at significantly higher rates, boosting FFO. Additionally, it benefits from asset rotation, regularly selling mature assets to lock in gains while reinvesting the proceeds into high-growth projects and strategic acquisitions.
With electricity demand surging due to the build-out of data centers and ongoing electrification, the need for clean energy is stronger than ever. Brookfield Renewable is well-positioned to benefit from this shift. Its solid pipeline of advanced-stage projects and recent acquisitions are expected to begin contributing meaningfully to earnings in the near term.
Wall Street is bullish about the company, with a “Strong Buy” consensus rating on BEP stock.
