3 Dividend Stocks Sitting Outside the AI Power Trade -- And Still Winning
None of these high-yielders owns power plants, but that doesn't mean they won't benefit from AI's massive power demands.
Overview
Artificial intelligence (AI) is really just a fancy computer program. While much of the news focuses on the computer chips and data centers needed to support AI, that ecosystem doesn't work without electricity. Access to reliable power has been a major bottleneck in the AI build-out, with utilities and other power providers likely to benefit from a step change in electricity demand. But there's another step, seemingly outside of the electricity sector, that you should consider if you are a dividend investor: the midstream sector.
Businesses like Enterprise Products Partners (NYSE: EPD), Enbridge (NYSE: ENB), and Energy Transfer (NYSE: ET) have ultra-high yields and keep winning despite not providing power to AI companies. Here's why, with yields of up to 6.3%, you'll want to get to know these three midstream giants.
Image source: Getty Images.
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Originally published at www.fool.com.
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