We don’t often think about where the energy that powers our homes or businesses comes from. But for millions of American retail and industrial customers, it’s not a simple answer. The lack of natural gas infrastructure in rural areas requires a different set of circumstances than cities and suburban regions. Our newest Best High-Yield Dividend Stocks Model Portfolio pick has been helping provide power to America’s rural customers for decades while supporting a high yield throughout its history!
You can check out the Best High Dividend Stocks Model Portfolio to explore all the stocks.
Our pick operates in the propane sector. With much of the country lacking natural gas pipelines, many customers use propane to power their cooking and heating needs. As one of the largest propane distributors in the country, our pick delivers this fuel via the company’s truck convoy to its customers’ on-site storage tanks owned by the company. And given the high costs for customers to switch electricity distributors, this creates plenty of long-term cash flow for our pick’s bottom line.
But our pick has plenty of growth behind it as well. Aside from residential heating and power, propane is tapped by a variety of industrial industries as well. Propane is quickly being tapped as mobility fuel for trucks and tractors. Moreover, it’s a must-have for the agricultural industry, powering various processes like seed drying. With the sector still fragmented, our pick has continued to find growth via M&A and buyouts. Its scale allows it to conduct deals with ease and become even larger.
All in all, our new pick offers a high-yield play in an underserved niche.
In order to make room for our new propane distributor, we’ve removed an investment bank-sponsored business development company. We’ve also increased our position in a midstream giant.
