If you’re looking to build a portfolio that gives you a steady stream of income, utility stocks are a good place to start. These tend to have consistent cash flow and pay out regular dividends. This can be pretty appealing for investors wanting reliability in their investment choices. If you had $15,000 to invest, Brookfield Infrastructure Partners (TSX: BIP.UN), Keyera (TSX: KEY), and TC Energy (TSX: TRP) could be strong options to put some of your money in. All three give you a nice mix of income and stability across different types of infrastructure and energy-related businesses. It’s like building a well-rounded team for your investment portfolio.
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BIP
Let’s start with Brookfield Infrastructure Partners. The utility stock is known for owning a really diverse bunch of infrastructure assets all over the world. Think things like toll roads, ports, railways, energy transmission lines, and even data centres. In 2024, it reported revenues of $21 billion. That shows just how widespread their operations are, covering a vast array of essential services.
Even though net income was a modest $34 million, Brookfield’s main focus is on growing its assets for the long term and generating sustainable cash flow. The utility stock offers a dividend yield of around 4.5% at writing. This means investors get a steady income from owning their units. Because it operates globally in different sectors, it’s in a good position to handle various economic conditions and isn’t overly reliant on any single market. This diversification is a key strength.
Keyera
Next up is Keyera, which operates in the oil and gas sector, but it’s not drilling for oil or gas itself. Instead, the utility stock focuses on the midstream part of the business. This involves processing and transporting natural gas and natural gas liquids. In 2024, Keyera had a record year with an adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $1.3 billion.
This strong performance was driven by solid results across all their different business areas, showing it’s efficient and in demand. The distributable cash flow for the year was $771 million. This works out to $3.36 per share. With a dividend yield of about 6.5%, Keyera offers a pretty compelling income opportunity for investors looking for regular payouts. The integrated business, which includes processing plants and transportation pipelines, and the strategic growth projects help to keep its finances resilient.
TC Energy
Finally, there’s TC Energy. The utility stock is a major player in the energy infrastructure scene across North America, primarily known for its extensive network of natural gas and oil pipelines. In 2024, it reported comparable EBITDA from ongoing operations of $10 billion. This was a 6% increase from the year before.
The net income that could be attributed to common shareholders was $4.6 billion, or $4.43 per share. TC Energy also increased the quarterly dividend by 3.3% to $0.85 per share, and has been increasing the dividend for 25 years straight! That’s a long track record of rewarding shareholders. With a dividend yield of around 6.5%, TC Energy provides a robust income stream for investors who value stability and consistent payouts in the energy infrastructure space. The ongoing projects, like the Southeast Gateway pipeline, show it’s committed to future growth and reliability in delivering energy across the continent.
Bottom line
If you were to split your $15,000 and put $5,000 into each of these companies, based on current dividend yields, you could expect significant annual income, even nearing a thousand dollars! That’s a decent return just from the dividends alone! This approach gives you a good mix across different parts of the utility and energy sectors. Brookfield offers that global infrastructure diversification, Keyera lets you tap into the midstream oil and gas market, and TC Energy provides stability through its massive pipeline network. It’s like having a balanced portfolio within the income-generating part of your investments.
