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If this is a book that you plan to publish on Amazon you can just upload your source format to them (EPUB or DOCX) and they will convert to all of the different formats used by Kindle devices as appropriate. A book that supports Enhanced Typesetting (ET) will be delivered to newer apps and devices in KFX format instead of MOBI or KF8. KFX format enables hyphenation, page flip, and the other ET features.
If this is something you are doing just for yourself you can manually convert to KFX using a calibre plugin or for just hyphenation you can add soft hyphens to an AZW3 file within calibre. Neither of those are suitable for publishing however.
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