The Smartest Dividend Stocks to Buy With $150 Right Now

The smartest investors often seek to identify and invest in major secular growth trends. This thematic approach ensures they're investing in companies supported by strong growth tailwinds. That positions them to earn higher total returns over the long run.

One of the biggest investment themes today is power. The world needs a tremendous amount of electricity to run data centers, advanced manufacturing facilities, and electric vehicles. That's fueling growing demand for natural gas.

The smartest way to play this trend is by investing in pipeline stocks. Energy Transfer (NYSE: ET) and Kinder Morgan (NYSE: KMI) are leading gas pipeline operators. That makes them wise choices for dividend investors with $150 to invest right now, as they have the fuel to turn it into a growing income stream.

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Capitalizing on the gas demand boom

Energy Transfer has a leading gas pipeline footprint. That positions the master limited partnership (MLP) -- it sends investors a Schedule K-1 Federal tax form each year -- to capitalize on the surge in gas demand.

The MLP currently has several natural gas infrastructure projects under construction, including new pipelines, capacity expansions, and processing plants. Its two biggest projects are the Hugh Brinson Pipeline ($2.7 billion) and the Transwestern Pipeline expansion project ($5.6 billion). The company has projects on track to enter commercial service through 2030, giving it tremendous growth visibility. Meanwhile, it expects to continue approving new projects to support growing gas demand.

Energy Transfer is investing at least $5 billion into expansion projects in 2026. They help support its expectation of growing its earnings by about 10% this year. That easily supports the MLP's plan to increase its distribution (which yields 7.2%) by 3% to 5% per year.

$10 billion secured, with another $10 billion in the pipeline

Kinder Morgan operates the country's largest gas infrastructure network, transporting 40% of the country's production. The pipeline company's extensive network puts it in a strong position to capitalize on growing gas demand.

It has already secured $10 billion in expansion projects ($9.1 billion of which are related to expanding its natural gas infrastructure). Like Energy Transfer, Kinder Morgan has projects underway that should come online through 2030, giving it significant growth visibility. The company is also pursuing more than $10 billion of additional natural gas infrastructure investment opportunities. Securing these projects would further enhance its growth outlook.

Kinder Morgan expects to deliver mid-single-digit earnings growth this year. Its growth rate should accelerate starting next year when the first of three large-scale gas pipeline projects enters commercial service. That will give it plenty of fuel to continue increasing its 3.6%-yielding dividend. This year will be the ninth straight year Kinder Morgan has raised its dividend.

High-octane total return potential

Surging natural gas demand to support AI data centers and new power supply projects is creating many new investment opportunities for Energy Transfer and Kinder Morgan. Those new pipeline projects will grow their cash flows in the coming years, giving them the fuel to continue increasing their high-yielding dividends. As a result, they could deliver high-octane total returns, turning a $150 investment into a growing income stream and a much larger future sum.

Matt DiLallo has positions in Energy Transfer and Kinder Morgan. The Motley Fool has positions in and recommends Kinder Morgan. The Motley Fool has a disclosure policy.