2025 was the year of the snake on the Chinese calendar. For investors, however, it had been looking like the year of global utilities – at least until recently.
Utility stocks outperformed the market throughout most of 2025. That dynamic has changed in recent weeks due to a pullback in the utilities sector.
But don’t be surprised if utility stocks quickly bounce back. Whether or not that happens soon, here are three stocks every investor should know about.
Image source: Getty Images.
Brookfield Infrastructure(NYSE: BIP)(NYSE: BIPC) has been one of my favorite global utility stocks for quite some time. Actually, it’s two of my favorite utility stocks. Brookfield Infrastructure Partners L.P. is a limited partnership that trades under the ticker symbol BIP, while Brookfield Infrastructure Corporation is a corporate entity that trades under the ticker symbol BIPC.
There’s one business underlying both stocks. Brookfield Infrastructure has operations in North America, South America, Europe, Asia, and Australia. Roughly 25% of its funds from operations (FFO) are generated from utilities, including 3,500 kilometers of natural gas pipelines and 3,100 kilometers of electricity transmission lines.
The remainder of Brookfield Infrastructure’s FFO is derived from a diverse range of infrastructure assets. These assets include cell towers, data centers, rail, semiconductor manufacturing foundries, and toll roads.
Investors should like Brookfield Infrastructure’s growth potential, especially considering the company’s record backlog of capital projects. And they should love its distribution and stability. Brookfield Infrastructure Partners’ distribution yield is 4.9%. Only 5% of its FFO is sensitive to oil and gas market conditions.
I’m also a big fan of Enbridge(NYSE: ENB). This Canadian company operates 29,104 kilometers of pipeline that transports roughly 30% of the crude oil produced in North America. Its 112,879 kilometers of natural gas pipelines (including assets operated by a joint venture with Philipps 66(NYSE: PSX)) transport 20% of the natural gas used in the U.S.
However, Enbridge is more than just a pipeline company. It also ranks as the largest natural gas utility in North America based on volume. The company delivers roughly 9.3 billion cubic feet of natural gas per day to more than 7 million customers.
Enbridge boasts an exceptional dividend program. Its forward dividend yield currently stands at 5.9%. The company has increased its dividend for 30 consecutive years.
This utility stock’s risk-adjusted total shareholder returns over the last 20 years have outperformed the overall utility sector, the midstream industry, and the S&P 500(SNPINDEX: ^GSPC). Enbridge also has solid growth prospects, with around $50 billion of visible growth opportunities through 2030.
Unlike Brookfield Infrastructure and Enbridge, Evergy(NASDAQ: EVRG) doesn’t have operations in multiple countries. Instead, it provides power to only two U.S. states – Kansas and Missouri. However, I believe this stock deserves attention from investors.
Evergy has delivered greater gains this year than the S&P 500 and the utilities sector. Despite this outperformance, the stock remains valued attractively. Its forward price-to-earnings multiple is a reasonable 17.1. That’s below the 18.5 forward earnings multiple for the S&P 500 utilities sector and much lower than the S&P 500’s multiple of 23.2.
The company offers an attractive dividend yield of 3.8%. Evergy has also increased its dividend for 22 consecutive years, most recently boosting the dividend payout by 4%.
Perhaps the most surprising benefit of owning this utility stock is its robust growth prospects. Kansas and Missouri are hotbeds for the construction of new data centers, thanks to tax incentives in both states. Evergy’s pipeline includes a significant number of large customers. Management foresees growth opportunities through 2030 and beyond.
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Keith Speights has positions in Brookfield Infrastructure, Brookfield Infrastructure Partners, Enbridge, and Evergy. The Motley Fool has positions in and recommends Enbridge. The Motley Fool recommends Brookfield Infrastructure Partners and Phillips 66. The Motley Fool has a disclosure policy.
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