Missed Investing in Energy Stocks? These 3 Stocks Still Offer Dividend Yields Above 6%
Energy stocks have risen significantly this year. The S&P Energy Select Sector Index is up 36% so far in 2021. That, however, doesn't mean that the bargains in the sector have completely gone away. Three pipeline stocks -- Enbridge (NYSE: ENB), Enterprise Products Partners (NYSE: EPD), and ONEOK (NYSE: OKE) -- look attractive despite their rise this year. Let's see what makes these stocks a buy right now.
All three companies generate relatively steady cash flows. Because they're in the midstream segment of the energy sector, their earnings are relatively less impacted when oil and gas prices fall compared with earnings of those engaged in oil and gas production. That's because the earnings of these three companies are backed by long-term, fee-based contracts.
Though the contract rates may get impacted if commodity prices remain suppressed for extended time periods, the companies' earnings are not much affected by short-term commodity price fluctuations.
Source Fool.com
