Energy continues to be a bright spot in the market’s current volatility. Thanks to rising demand and inflation, energy prices have been riding high – and that benefits stocks within the sector. Dividend investors have also benefited with supportive cash flows and big yields. Case in point is the latest pick in our Best High Dividend Stocks Model Portfolio.
Our pick, which owns a vast network of pipelines, gathering lines and storage facilities, operates as a midstream firm. The key to our pick’s success is its operating area. Focusing on the Appalachian Basin, our pick holds significant assets in both the Marcellus and Utica Shales. These two fields are some of the most prolific natural gas fields in the nation. Thanks to this focus, our pick has continued to see growth and supportive cash flows to cover its 8.7% dividend yield.
The best part is that our pick is structured as a master limited partnership (MLP). As such, it operates as a pass-through entity, with much of its cash flow heading right back into investors’ pockets. Better still, its high yield comes with plenty of tax advantages for investors.
With the stock going ex-dividend on April 25 (estimated date), it could be an optimal pick to add or increase your position in the stock.
You can check out the Best High Dividend Stocks Model Portfolio to explore all the stocks.
