Three stocks with forward yields above 5% present long-term growth potential, driven by midstream energy demand and AI infrastructure needs.
Energy Transfer, a master limited partnership (MLP) in midstream energy, offers a 6.6% forward dividend yield. The company has historically increased payouts by 2% to 4% annually but now targets 3% to 5% growth due to rising demand from AI data centers for energy infrastructure.
Pfizer and United Parcel Service (UPS) also stand out for their high yields and stability. Energy Transfer’s exposure to AI-driven energy demand positions it for potential long-term appreciation alongside steady distribution growth.
The stocks are highlighted for their balance of yield and growth potential, avoiding typical yield traps associated with unsustainable payouts or declining share prices.