3 No-Brainer Energy Stocks to Buy in August
The energy sector has been one of the few bright spots in the market this year. Stocks in that sector are up by more than 30% on average compared to a double-digit percentage decline for the S&P 500.
Even with those big gains in the rear-view mirror, however, several energy stocks still look like compelling investment opportunities this August. In particular, three of our contributors see Enbridge (NYSE: ENB), Brookfield Renewable (NYSE: BEPC)(NYSE: BEP), and Kinder Morgan (NYSE: KMI) as no-brainer buys.
Reuben Gregg Brewer (Enbridge): I probably sound like a broken record when it comes to Canadian midstream giant Enbridge -- I recommend it often, but with good reason. The stock offers a generous 6% dividend yield, and management has boosted the payout for 27 straight years. Its cash flows are supported by diversified, fee-based businesses, so commodity prices aren't the primary driving forces behind its results -- energy demand is. It has an investment-grade rated balance sheet and currently generates around $2 billion more in cash flow annually than it needs to fund its business, capital investment plans, and dividend. The company appears to be in a great position right now and its growth options are wide open.
Source Fool.com
