2 Ultra High-Yield Energy Stocks to Buy for 2022 and Beyond
If it were possible to flip a light switch and change over to clean energy, the world would have done it by now. But no matter how much better it would be to avoid the use of carbon fuels, we still need them. And we will continue to need them for years to come, because energy transitions take time. That's why you might want to consider ultra high yielders Magellan Midstream Partners (NYSE: MMP) and MPLX LP (NYSE: MPLX). Here's a quick look at each.
Midstream master limited partnership (MLP) Magellan Midstream has increased its distribution every year since its initial public offering (IPO) in 2001. That's an impressive two-decade-long streak. And the distribution yield is currently a heady 7.9%. To put that into perspective, the S&P 500 index yields just 1.3%, and the average energy stock, using Vanguard Energy Index ETF as a proxy, has a dividend yield of 2.6%. The relatively high yield should hint that there are some risks here. But how much risk is there?
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Source Fool.com
