Historically boring, the midstream sector has been on fire as the world grapples with rising energy demand amid supply constraints. Moving crude oil and natural resources has produced stellar returns for investors. And that includes the returns for our latest pick on Best Energy Dividend Stocks List , which has produced a 2.7% price return (vs. a nearly 14% decline witnessed by the well-diversified S&P 500 Index) since being added to the portfolio on March 17, 2022. Moreover, it’s provided investors a strong 8.7% yield!
Our pick is one of the largest midstream firms dedicated to moving and storing crude oil. This focus and its huge network of pipelines, terminals and key tank farms have long provided steady cash flows for the firm. Lately, these cash flows have exploded as its system has become more in demand from energy producers bent on supplying the world with crude oil.
The real win has been our pick’s conservative management. By sticking to their guns and not taking huge risks, our pick features a strong debt coverage ratio that is one of the best in the business. And with smart expansion projects, our pick should be able to see its cash flows grow in the new energy environment.
All in all, our pick offers a large tax-advantaged yield and makes for an ideal selection in the energy sector.
You can check out the Best Energy Dividend Stocks List to explore all the stocks.
