These High-Yield Energy Stocks Are Making a Needle-Moving Trade to Enhance Their Dividends
Oil pipeline giant Enbridge (NYSE: ENB) and refining and midstream company Phillips 66 (NYSE: PSX) each have a long history of paying attractive dividends to investors. Enbridge has increased its dividend for 27 straight years, making it Dividend Aristocrat, while Phillips 66 has given investors 11 raises since its formation in 2012. The energy companies currently offer attractive dividend yields, 4.3% at Phillips 66 and 6.3% for Enbridge.
The energy companies are taking a joint step to improve their abilities to maintain and grow their high-yielding payouts by consolidating two joint ventures. They are, in a sense, trading stakes in two assets to enhance their strategies. Here's a closer look at the deal and how it will benefit these energy stocks.
Enbridge and Phillips 66 recently completed a joint venture (JV) merger transaction. They now own a single JV holding their ownership interests in the Gray Oak Pipeline and DCP Midstream (NYSE: DCP).
Source Fool.com
