Stick to high-quality dividend payers amid tariff turmoil, such as this energy stock, investor Tom Hulick says

Stick to High-Quality Dividend Payers Amid Tariff Turmoil, Such as This Energy Stock, Investor Tom Hulick Says

By Steven Orlowski, CFP, CNPR

In a market roiled by rising tariffs, geopolitical tension, and global supply chain disruptions, seasoned investor Tom Hulick has a message for income-focused investors: stay the course with high-quality dividend payers. And he’s pointing to one energy stock in particular that he believes offers a rare combination of stability, growth potential, and reliable income.

“Markets don’t like uncertainty, and tariffs inject a lot of it,” Hulick said in a recent interview. “But solid dividend-paying companies—especially those with pricing power and recession-resistant business models—can help investors weather the storm.”

Why Dividends Matter in Volatile Times

Dividend stocks have long been a staple of conservative investment strategies. In volatile or inflationary environments, dividend-paying companies can serve as ballast in a portfolio, offering steady returns even when capital gains are hard to come by.

But not all dividend payers are created equal, Hulick warns.

“Chasing yield can be a dangerous game,” he says. “You want companies with a strong balance sheet, consistent free cash flow, and a commitment to shareholder returns—not just high yields.”

Hulick’s Pick: Enbridge Inc. (NYSE: ENB)

Among Hulick’s top choices is Enbridge Inc., a Canadian energy infrastructure giant with a long history of dividend growth. The company currently offers a yield of around 7.5%, significantly higher than the S&P 500 average, and has raised its dividend for 28 consecutive years.

“Enbridge has the kind of durable competitive advantage I look for,” says Hulick. “Its pipeline network is essential to the North American energy system, and its cash flows are largely underpinned by long-term, take-or-pay contracts. That makes earnings more predictable, even in a challenging economic environment.”

Despite macroeconomic headwinds, Enbridge continues to invest in its core pipeline business while also expanding into renewables—an area Hulick sees as a long-term growth driver.

“Enbridge is well-positioned to bridge the gap between today’s fossil fuel economy and tomorrow’s clean energy future,” he says. “That’s a rare trait in the energy sector.”

Tariffs Add Fuel to Inflation Concerns

The latest round of tariffs announced by the U.S. and China has reignited fears of a prolonged trade war, driving up input costs for manufacturers and increasing the risk of inflation. Hulick sees this as yet another reason to favor companies with hard assets and inflation-resistant revenue models.

“Pipelines, utilities, and midstream energy companies tend to have regulated or contractual revenues tied to inflation,” he notes. “That gives them a natural hedge and helps protect their dividend payouts.”

Quality Over Quantity

For investors seeking income and stability, Hulick advises a selective approach—favoring companies with investment-grade credit ratings, low payout ratios, and a track record of consistent dividend increases.

“The key is to own businesses that can maintain or grow their dividends, even during downturns,” Hulick says. “When uncertainty is high, quality always wins.”

Final Thoughts

In times of tariff-driven volatility, Hulick’s advice is clear: don’t panic—pivot to quality. With its strong fundamentals, high yield, and strategic positioning, Enbridge Inc. stands out as a dividend stock worth holding.

“Investing isn’t about predicting the future,” Hulick says. “It’s about being prepared for it. And that starts with owning the kind of businesses that can thrive through whatever comes next.”