Volatility has been rampant in the energy sector. Thanks to economic worries, prices for crude oil and natural gas have continued to fluctuate rapidly over the last few weeks. And yet, demand still has remained relatively steady. For investors in the sector, that means playing a certain kind of energy stock. And our latest Best Energy Dividend Stocks List pick happens to be one of the best.
Our pick operates in the midstream sector – it owns critical infrastructure that moves energy commodities from point A to point B. The best part is that these pipelines, terminals, storage and other critical energy infrastructure assets often operate under “take or pay” volume-based contracts. This eliminates the worries about commodity pricing from its revenues. And given that our pick is one of the largest midstream firms around, its volumes have remained steady throughout.
Even better is that our firm has continued to expand through small bolt-on transactions and M&A. It’s here that our pick has been able to grow its payout and find supportive cash flow for buybacks. All in all, our pick offers a stable, high-yielding play on the growing need for energy around the world.
In addition to increasing our position in our midstream pick, we’ve also increased positions in another midstream firm as well as two exploration & production (E&P) stocks. We’ve removed a different midstream firm from the list.
You can check out the Best Energy Dividend Stocks List to explore all the stocks.
