For investors looking for income, the major energy infrastructure names have become a favorite stomping ground to find big dividends. Secured by volumes, rather than the underlying price of the commodities they move, investors are drawn to the sector’s perceived safety and security. Not to mention, the dividend yields are in the 5% to 7% range.
However, the last few years haven’t exactly been all that rosy for the major pipeline players. The resulting oil bust and contentious legal battles between right-of-ways and construction activity have hindered the overall sector. The major indexes of these stocks have spent much of the last two years in the proverbial toilet.
But as the song in Disney’s Toy Story goes, “You got a friend in me,” and the pipeline players have a friend in President Donald Trump.
Trump’s continued support of the industry has lit a fire under pipeline stocks, and their return to growth could be at hand. For investors, the sector is still a fertile hunting ground for big dividends and, now, they have a major catalyst pushing their shares forward.
