Top 3 Energy Dividend Stocks for Reliable Income in 2026

Source Motley_fool

Key Points

  • The energy sector is known for volatility.

  • Despite that reputation, there are still companies consistently increasing their dividend payouts.

  • Con Edison, Enrbidge, and Enterprise Products Partners have increased their payouts for decades.

  • 10 stocks we like better than Consolidated Edison ›

In the dividend world, Dividend Kings are the model example of reliability. Those are the companies that, through thick and thin, have increased their dividend payouts for 50 or more consecutive years.

The energy sector is known for volatility, but there are still companies that can offer the same level of consistency in their payouts. We'll look at three of those energy companies today; one is in fact a Dividend King that has increased its payout consecutively for over 52 years, while the two other companies are on the path to earning that title. Those companies are Consolidated Edison (NYSE: ED), Enbridge (NYSE: ENB), and Enterprise Products Partners (NYSE: EPD).

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The utility Dividend King

Consolidated Edison is a regulated utility operator with a strong anchor in New York that allows it to generate consistent cash flow. Its first of three main business segments, Con Edison of New York, provides gas services to over 1 million customers and electric services to over 3 million customers in New York City and Westchester County. Its Orange & Rockland business serves over 400,000 customers with its electric and gas services, and its Con Edison Transmission business invests in electrical and natural gas transmission projects.

Consolidated entered the Dividend King club not too long ago, with 52 years of consecutive payout increases. Currently, that payout yields 3.3%, and the company can maintain it thanks to strong income generation.

In 2025, it generated over $2 billion in net income, up from $1.8 billion in 2024. It's off to a strong start this year, reporting net income of $924 million in its 2026 first-quarter earnings report. With regulated utilities, an investing consideration is that companies can't typically rely on price increases for revenue growth, as those increases require approval.

Enbridge uses an "all of the above" strategy

As data centers power artificial intelligence (AI) workloads, it puts strain on traditional grids. According to Motley Fool research, to meet those demands, investors should consider how multiple energy sources can be used:

Investors should focus more on total energy demand than on renewables versus fossil fuels in the energy mix. Over the long term, solar, wind, battery energy storage, and nuclear will likely make up a higher proportion of the electricity mix than natural gas and coal. However, natural gas consumption could still be far higher 5 to 10 years from now than today, given AI's outsize energy demands.

That fits right into Enbridge's approach, which says it believes in an "all-of-the-above energy supply approach that's built for reality." As examples of its range of energy offerings, Meta Platforms signed an agreement to purchase all the renewable energy output from Enbridge's solar project in Texas. It also operates a massive natural gas pipeline, which moves roughly 20% of all the gas consumed in the U.S.

It's building its way up to becoming a Dividend King, with 31 years of consecutive dividend increases, and that dividend currently yields 4.8%. Strong earnings continually support that payout. For 2025 in Canadian dollars, generally accepted accounting principles (GAAP) earnings were CA$7 billion ($5 billion).

The big business of energy transportation and storage

Enterprise is a midstream service provider, acting as an intermediary that processes, transports, and stores between extraction and final delivery. It operates over 50,000 miles of pipeline, with over 21,000 miles dedicated to natural gas. The rest is for natural gas liquids, crude oil, refined products, and petrochemicals. That puts Enterprise in a strong position, as the global natural gas market is expected to continue growing from roughly $895 billion in 2025 to more than $1 trillion by 2033, according to Grand View Research.

Enterprise's dividend yield is high at 5.5%, which is within a range that can often worry investors about sustainability, especially in the energy sector. Even with those concerns typical of other companies, Enterprise continues to produce steady net income, enabling dividend increases for 27 consecutive years. In 2024, it reported $5.9 billion in net income and $5.8 billion in 2025.

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Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Consolidated Edison and Enbridge. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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