With energy demand rising, getting all that crude oil, natural gas, and even coal from point A to point B takes a lot of heavy lifting. For firms that operate in the midstream sector, this has produced a steady stream of profits through their pipelines. And you can’t get steadier than our newest Best Dividend Stocks Model Portfolio pick.
Our pick is one of the largest owners of pipelines, terminals, storage, and other assets in North America. It’s more than 50,000 miles to be exact. Those pipelines form a critical highway for moving a variety of energy products across the country and, ultimately, the world. The best part is our pick collects a check as the energy moves through its system.
This pricing based on volume rather than underlying commodity price has benefited our pick with a steady base of cash flows for decades and supported a high yield. Meanwhile, our pick has been able to find new growth channels via M&A and bolt-on transactions.
Watch for when the stock goes ex-dividend on Wednesday, April 27 (estimated date).
To make room for this midstream pick, we had to remove a biotech firm from our list this week.
You can check out the Best Dividend Stocks Model Portfolio to explore all the stocks.
