This Famous Billionaire Investor Likes This Relatively Unknown Ultra-High-Yield Dividend Stock

Bill Gross made a name for himself (and a lot of money) by investing in bonds. Nicknamed the "Bond King," Gross ran Pimco's Total Return Bond Fund for decades, enriching himself (he's worth an estimated $2.5 billion) and investors in that fund.

Today, Gross dabbles more in equities. One asset class he likes is master limited partnerships (MLPs). While MLPs can complicate your taxes (they send K-1s instead of 1099-DIVs), they supply tax-deferred income, which Gross likes. His current favorite is Western Midstream Partners (NYSE: WES). Here's why.

Bill Gross has been highlighting the value proposition of MLPs for a while now. He noted that the oil and gas pipeline operators offer hefty dividend yields, with much of that income tax deferred. That makes them compelling investment opportunities, especially in today's seemingly overheated market, where the S 500 and Nasdaq 100 trade at lofty multiples (23.5 times earnings for the S 500 and over 31 times for the Nasdaq). Investors have driven up the value of most stocks, especially the "Magnificent Seven," due to euphoria over AI and other catalysts.