The United States is awash in natural gas. Thanks to its geology, America’s shale fields feature billions of cubic feet worth of the fuel. And thanks to fracking, we’re finally starting to tap into the bounty. As a lower-carbon energy source versus oil and coal, natural gas is being used in cogeneration plants to provide needed energy at a lower rate of greenhouse gases.
And our pick happens to be at the forefront of its distribution.
The issue is getting gas from here to markets in Asia and Europe where demand is not being met. With oil, you can load it into barrels and fill a tanker to send overseas, but with natural gas, you need to put it under immense pressure and cool it into a liquid. This is a specialized process and only a few firms have invested in the infrastructure to do so – and that includes our latest pick.
Our pick owns a mega-liquefaction facility on the Gulf Coast, allowing the company to turn natural gas into LNG shipping overseas. With long-term supply agreements in place, our pick has started to make serious cash from its operations.
Even better is that our pick is structured as a master limited partnership (MLP). This means its cash flows are directed to investors in the form of a high 6.12% yield.
You can check out the Best Dividend Energy Dividend Stocks List to explore all the stocks.
