Mondelez's Dividend Resilience vs. AI Energy Infrastructure: A Balanced Portfolio Play

As artificial intelligence (AI) reshapes global energy demand, investors face a critical choice: prioritize the safety of established dividend payers like Mondelez International (MDLZ) or pivot toward undervalued energy infrastructure stocks poised to capitalize on AI's power-hungry growth. This article explores how Mondelez's robust dividend history and cash flow stack up against overlooked energy plays, urging investors to balance stability with opportunistic growth.

Mondelez's Dividend Resilience: A Foundation of Safety

Mondelez, the global snacking giant behind Oreo, Cadbury, and belVita, has built a reputation for dividend reliability. With a current dividend yield of 2.79% (as of June 2025) and a payout ratio of 68%, its dividends are firmly grounded in cash flow. Over the past decade, dividends have grown at an 11.1% compound annual rate, and the company has returned $4.7 billion to shareholders in 2024 alone through dividends and buybacks.

Key Strengths:
- Cash Flow Stability: Free cash flow hit $3.5 billion in 2024, with projections to stay above $3 billion in 2025 despite cocoa cost inflation.
- Global Diversification: Emerging markets account for 59% of revenue, insulating it from regional downturns.
- Defensive Sector Edge: Consumer staples demand remains recession-resistant, a critical buffer in volatile markets.

However, Mondelez isn't without risks. Cocoa prices—its single largest input—could squeeze margins further. Still, its fortress-like balance sheet (debt-to-equity of 0.4) and 97% cash flow coverage of dividends provide a safety net.

The Undervalued Energy Infrastructure Play: Fueling AI's Future

While Mondelez offers stability, the energy sector hosts high-yield, growth-oriented plays aligned with AI's insatiable power needs. Data centers alone could consume 14% of global electricity by 2030, driving demand for reliable, scalable infrastructure. Here are three standout stocks:

1. Oklo Inc. (OKLO): Nuclear Innovation at 12x P/E

• Why It's Undervalued: OKLO's small modular reactors (SMRs) offer baseload power at 1/10th the cost of lithium-ion batteries, ideal for data centers. With $90 million in cash and partnerships from Microsoft and Alphabet, it's a $9 billion market cap stock trading at 12x forward earnings—a stark contrast to overhyped AI software stocks like Nebius (132x P/E).
• Growth Catalyst: Its Aurora microreactor could secure $1.5 billion in DOE grants, with commercial deployment by 2027.

2. Energy Transfer LP (ET): Pipelines Powering Data Hubs

• Dividend Appeal: A 7.4% yield and $3+ billion in annual free cash flow make ET a cash cow. It supplies 55%-60% of Texas's gas, a key data center hub.
• Infrastructure Edge: Its 70,000-mile pipeline network ensures dominance in gas transportation, a critical lifeline for data centers balancing renewables' intermittency.

3. Enbridge (ENB): Connecting Data Centers to Gas Storage

• Geographic Strength: Serves Ohio, Utah, and North Carolina, regions with booming data center demand. With 45% of U.S. power generation within 50 miles of its assets, ENB's 7.5% dividend yield is a safe bet.

Why Balance Both?

Mondelez and energy infrastructure stocks represent two sides of the same portfolio coin:

• Mondelez's Role: Provides dividend safety and inflation resilience. Its 9-year dividend growth streak and 68% payout ratio make it a core holding for income-focused investors.
• Energy Plays' Opportunity: Offer high yield and growth tied to secular trends like AI adoption. Stocks like OKLO and ET combine income (5%-9% yields) with capital appreciation potential as data center demand surges.

The Investment Thesis: Diversify for Balance

• Buy Mondelez (MDLZ) at $66.75/share for recession-proof income and global brand equity. Hold for the long term, leveraging its 6.6% total shareholder yield (dividends + buybacks).
• Invest in Energy Infrastructure via a balanced ETF like the Alerian MLP ETF (AMLP) or individual picks like Energy Transfer (ET) or Oklo (OKLO) for growth.

Risks to Monitor

• Mondelez: Cocoa price volatility, currency headwinds (2.5% revenue drag in 2025).
• Energy Plays: Regulatory shifts (e.g., carbon taxes), commodity price swings, and execution risks in nuclear tech.

Final Take: Safety Meets Growth

Mondelez's dividend resilience and cash flow make it a must-hold for conservative investors, while energy infrastructure stocks like OKLO and ET offer high-yield, growth-oriented alternatives to ride AI's energy wave. In 2025, the optimal portfolio balances both: 20% in Mondelez for stability and 20% in energy plays for upside.

In a world where AI's energy needs are rewriting the rules, investors who blend Mondelez's “snackable” safety with infrastructure's “powerhouse” growth will be best positioned to thrive.