The energy sector currently holds the second-highest dividend yield in the S&P 500 at 3.3%, which is three times the index's average of 1.1%. This makes it a notable area for investors seeking high-yielding dividend stocks.
Brookfield Renewable, a global renewable energy producer, sells most of its power under long-term, fixed-rate power purchase agreements. About 90% of its power is under contract for an average term of 13 years, with 70% of its revenue linked to inflation. The company yields a 3.8% dividend and expects to grow it at a 5% to 9% annual rate. Last year marked the 14th consecutive year Brookfield increased its payout by at least 5%.
Enbridge, one of North America's largest energy infrastructure operators, owns a network of oil and gas pipelines, a major gas utility franchise, and a growing renewable power business. Long-term contracts and regulated rates support about 98% of its annual earnings. The company yields a 5.8% dividend and plans to boost it by 3% to 5% annually. In 2026, Enbridge delivered its 31st consecutive annual dividend increase, raising it by another 3%.
Both companies are highlighted as energy stocks for dividend income. Brookfield Renewable's growth drivers include inflation-linked rate increases, securing higher rates as contracts expire, and investments in development projects and acquisitions. Enbridge's base operations produce stable earnings, and it has a multi-billion-dollar backlog of capital projects expected to enter service through the decade.