2 Ultra-High-Yield Energy Stocks to Buy Hand Over Fist and 1 to Avoid
If you are in the market for high-yield stocks, you are probably trying to live off of the income you generate. That's a wise decision, but one that requires extra care when you think about individual investments. In other words, a high yield alone isn't enough information to go on. You need to dig deeper.
This is why Enbridge (NYSE: ENB) and Enterprise Products Partners (NYSE: EPD) are high-yield stocks worth taking a closer look at and Devon Energy (NYSE: DVN) is a stock you should probably avoid. Let me explain.
When it comes down to it, dividend investors put excitement low on their priority list when examining potential investments. At the top of the list is most likely a reliable income stream. And right up there with it is a revenue stream that trends higher over time. On that score, Enbridge has increased its dividend annually for 28 consecutive years while Enterprise has increased its distribution for 25 years. That consistency strongly suggests a huge amount of reliability, especially when you consider that both companies operate in the highly volatile energy sector. The key is that they are midstream providers.
Source Fool.com
