Natural gas is quickly emerging as the fuel of choice for utilities across the world. Seen as a lower carbon bridge fuel and perfect for co-generation, utilities worldwide are quickly switching toward the fuel to power their operations. For firms like our latest Best High-Yield Dividend Stocks Model Portfolio pick, which operates in the industry, the natural gas surge has become a cash flow bonanza to the overall sector’s bottom line. In this case, it is supporting a hefty 6% dividend yield.
The strength for our pick is its focus on delivering natural gas to end users. As a midstream stock, our pick has thousands of miles worth of pipelines, storage terminals and other assets designed to move fossil fuels. The best part is that this infrastructure operates mostly on toll road-like volume fees, providing plenty of steady cash flows.
Moreover, our pick has been using excess cash to buy back stock, reduce debt and invest in smart expansion plans across its system. This will only serve to boost cash flows further as natural gas continues to become the fuel of choice for power producers.
In the end, our pick offers a steadfast, high-yielding play on the growth of natural gas.
In addition to our increased position in our midstream pick, we’ve also increased our positions in several other high-yielding stocks from the energy, financials and real estate sectors as well as removed a tobacco firm.
You can check out the Best High Dividend Stocks Model Portfolio to explore all the stocks.
