5 Midstream Stocks Offering Dividend Yields Higher Than 6%
Volatile energy stocks, representing ownership in companies dependent on the vagaries of oil and gas prices, have disenchanted many investors in the last few years. However, the sector's high yields continue to attract income investors. Several energy stocks are currently offering yields much higher than their historical yields. Midstream companies, in particular, offer attractive dividends and tend to be relatively less prone to commodity price fluctuations compared to oil and gas producers.
Though midstream companies' earnings and their stocks do get impacted by commodity prices, the industry's business model is sound. There will always be a demand to transport oil and gas from the source of production to refineries, processing facilities, and end markets, irrespective of commodity prices. Five midstream stocks currently offering attractive yields are Kinder Morgan (NYSE: KMI), ONEOK (NYSE: OKE), Williams Companies (NYSE: WMB), Enbridge (NYSE: ENB), and Enterprise Products Partners (NYSE: EPD).
Kinder Morgan operates the country's largest gas transmission network and moves roughly 40% of total U.S. natural gas consumption and exports. The midstream giant lost investors' trust big time when it slashed its dividends in 2015. However, the company has taken steady steps to improve its balance sheet position since then.
Source Fool.com
