2024-08-06 04:49:00 ET
Oil has been fueling the industrial economy for over a century. It's still important today and likely will remain vital for years to come . However, the digital economy runs on a different fuel: data. Companies rely on data centers to process and store data for their cloud computing and artificial intelligence (AI) applications. And those power-hungry facilities require massive amounts of energy.
That's playing right into the hands of Enbridge (NYSE: ENB) , a leader in energy infrastructure. The Canadian pipeline and utility operator is capitalizing on new opportunities to help supply lower-carbon energy to data centers . This could give the company even more cash to grow its 7%-yielding dividend in the future .
Enbridge recently closed its $4.3 billion acquisition of Questar, the second of three natural gas utilities it's buying from Dominion . The initial draw of buying Questar (now Enbridge Utah ) and the other two gas utilities is that they generate very stable cash flow that should grow steadily in the future .
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Data Is the New Oil, and It's Powering Growth for This 7%-Yielding Dividend Stock