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2 No-Brainer Dividend Stocks to Buy Hand Over Fist

newsfeedback@fool.com (Leo Sun)
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⚡ Quantum Brief
Federal rate cuts in 2024-2025 revived investor interest in dividend stocks, with potential further reductions under incoming Fed Chair Kevin Warsh boosting demand for high-yield options. Energy Transfer’s pipeline “toll road” model ensures stable profits by charging fees for transporting energy commodities, shielding it from volatile prices while benefiting from AI and cloud-driven energy demand. The company’s 7.3% forward dividend yield and tax-efficient MLP structure make it a bargain at 12x forward earnings, with 140,000 miles of pipelines securing long-term cash flow. Verizon’s turnaround gains traction through broadband expansion, including 2.2 million new fiber subscribers via Frontier Communications, and AI-driven cost cuts in customer support and network operations. Analysts project Verizon’s EPS to grow 4% in 2026 and 7% in 2027, with its 5.7% dividend yield and 10x forward earnings offering value amid stabilizing wireless and enterprise segments.
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By Leo Sun – Feb 13, 2026 at 1:05PM ESTKey PointsEnergy Transfer’s “toll road” model will thrive as the energy market expands.Verizon’s turnaround plans are finally bearing fruit.We’re bullish on these 10 stocks ›NYSE: ETEnergy TransferMarket Cap$63BToday's Changeangle-down(2.00%) $0.36Current Price$18.63Price as of February 13, 2026 at 1:53 PM ETEnergy Transfer and Verizon are reliable anchors for this choppy market.When the Fed raised its benchmark rate 11 times in 2022 and 2023, many investors pivoted from dividend stocks to risk-free CDs and T-bills to earn higher yields. But the Fed cut those rates six times in a row in 2024 and 2025, driving more investors back toward dividend stocks. Many analysts expect Kevin Warsh, who could become the next Fed chair this May, to continue cutting rates to spur fresh lending and economic growth. If that happens, it could be smart to buy these two dividend stocks: Energy Transfer (ET +2.00%) and Verizon (VZ 0.92%). Image source: Getty Images.

Energy Transfer Energy Transfer, which operates over 140,000 miles of pipeline across 44 states, is one of America's top midstream companies. It charges upstream extraction companies and downstream refining companies "tolls" to deliver natural gas, liquefied natural gas (LNG), natural gas liquids (NGLs), crude oil, and other refined products through its pipelines. ExpandNYSE: ETEnergy TransferToday's Change(2.00%) $0.36Current Price$18.63Key Data PointsMarket Cap$63BDay's Range$18.27 - $18.8052wk Range$14.60 - $20.51Volume881KAvg Vol15MGross Margin12.85%Dividend Yield7.26% That business model is well-insulated from volatile commodity prices, since it merely needs those resources to keep flowing through its pipes to generate stable profits. It's also a master limited partnership (MLP), which blends a return of capital (which isn't taxed at the capital gains rate unless the underlying position is sold) and its own income to fund its distributions. Energy Transfer's evergreen business model, tax-efficient structure, and exposure to soaring energy demand (partly driven by the cloud and AI markets) all make it an attractive investment. It pays a high forward yield of 7.3%, and it looks like a bargain at 12 times forward earnings. Verizon Verizon, which serves 146.7 million wireless customers, is one of America's top telecom companies. In recent years, it struggled to gain more wireless subscribers as its competitors ramped up their promotions and bundling strategies. Its business wireline segment also shrank as more companies pivoted toward cloud-based communications services. ExpandNYSE: VZVerizon CommunicationsToday's Change(-0.92%) $-0.46Current Price$49.01Key Data PointsMarket Cap$209BDay's Range$48.63 - $49.4252wk Range$38.39 - $50.24Volume882KAvg Vol31MGross Margin45.64%Dividend Yield5.53% To offset that pressure, Verizon expanded its higher-growth broadband business (including its Home Internet and FiOS fiber plans), and it recently added more than 2.2 million new fiber subscribers through its takeover of Frontier Communications. It's also bundling more wireless and broadband plans, upgrading its enterprise plans with additional AI tools, and using AI to streamline customer support and network deployments. As those turnaround strategies bear fruit, analysts expect its adjusted EPS to rise 4% in 2026 and 7% in 2027. Its stock still looks dirt cheap at 10 times forward earnings, and it pays an attractive forward dividend yield of 5.7%.Read NextFeb 13, 2026 •By Geoffrey SeilerShould You Buy Energy Transfer Stock Before Feb. 17?Feb 10, 2026 •By Leo SunWhere Will Energy Transfer (ET) Stock Be in 3 Years?Feb 10, 2026 •By Reuben Gregg BrewerIs Energy Transfer Stock a Buy Now for Income-Focused Portfolios?Feb 8, 2026 •By Matt DiLalloCould Buying Energy Transfer Stock Today Set You Up for Life in Passive Income?Feb 6, 2026 •By Matt DiLalloWhy Units of Energy Transfer Surged Nearly 12% in JanuaryFeb 6, 2026 •By Reuben Gregg BrewerIs This Texas-Based Energy Company a No-Brainer Buy for Dividend Investors?About the AuthorLeo Sun is a contributing Motley Fool stock market analyst who has worked with the company since 2013, covering technology, consumer goods, industrial, and financial sectors. He became a self-made millionaire by age 40 through long-term investing, crediting lessons from Warren Buffett and Peter Lynch. Leo is a regular guest on CNBC Asia providing stock analysis on Chinese technology companies, including Tencent, Baidu, and Alibaba. He previously wrote for InvestorGuide and holds a bachelor’s degree in English from the University of Texas at Austin.TMFSunLionX@TMFSunLionStocks MentionedEnergy TransferNYSE: ET$18.63 (+2.00%) $+0.36Verizon CommunicationsNYSE: VZ$49.01 (0.91%) $0.45*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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