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a day ago
- Business
- Yahoo
What Are the 5 Best Pipeline Stocks to Buy Right Now?
Energy Transfer and Enterprise Products Partners both have high yields and strong growth potential. Western Midstream, meanwhile, is more a yield-oriented investment, while Williams is a growth story. Genesis may have the most potential upside because the company is in the midst of a turnaround. 10 stocks we like better than Energy Transfer › The pipeline sector offers investors a nice mix of high yields, predictable cash flows, and solid growth. And with natural gas demand set to climb thanks to liquefied natural gas (LNG) exports and energy-hungry AI data centers, the midstream sector looks well positioned to deliver strong returns from here. My five favorite stocks in the pipeline space are: Energy Transfer (NYSE: ET), Enterprise Products Partners (NYSE: EPD), Western Midstream (NYSE: WES), The Williams Companies (NYSE: WMB), and Genesis Energy (NYSE: GEL). Each brings something different to the table for investors. Energy Transfer operates one of the largest midstream networks in the United States, and it's entering a clear growth phase. The company boosted its growth capital expenditure budget from $3 billion last year to $5 billion this year, with a focus on natural gas infrastructure tied to the Permian Basin. This puts it in a strong position as power demand spikes from AI data centers and LNG exports ramp up. The company already signed a deal with Cloudburst to directly supply natural gas to a prospective Texas data center, and it continues to get inbound interest for similar projects. Meanwhile, its long-delayed Lake Charles LNG export terminal looks increasingly likely to get the green light. About 90% of Energy Transfer's EBITDA is tied to fee-based contracts, with many having take-or-pay provisions, giving it steady and predictable cash flow. That supports a generous and well-covered distribution yielding 7.2%, with management targeting 3% to 5% annual growth. If you want bulletproof reliability, Enterprise Products Partners is about as steady as it gets. It has raised its distribution for 26 consecutive years through downturns, oil price crashes, and recessions. The reason? About 85% of its revenue is fee-based with inflation-linked escalators built into its contracts. Furthermore, many of its contracts are backed by take-or-pay terms, meaning it gets paid whether customers use its services or not. In addition, it has always maintained a conservative balance sheet. The result is steady, visible cash flow, quarter after quarter, and no stress from being over-leveraged with debt. Enterprise also has $7.6 billion in projects under construction, including $6 billion scheduled to come online this year. These are high-return expansions, much of them in the NGL value chain where the company is a dominant player. Despite its conservative approach, Enterprise isn't afraid to lean into growth opportunities, and it's doing exactly that right now. Enterprise is a solid option for investors who want dependable income and steady, long-term growth. If you like high yields, Western Midstream offers one of the highest in the space at 9.5%. But what makes it especially attractive is the quality of its cash flow. Most of its contracts include either cost-of-service protections or minimum volume commitments, which provide strong revenue visibility regardless of commodity prices. It's also one of the more conservatively run midstream names, with leverage below 3x and a distribution that's well covered. The company isn't chasing every growth project, but it's still investing where it sees solid returns. Its biggest project right now is the Pathfinder produced-water pipeline, an up to $450 million project that should be a solid EBITDA contributor when it ramps up. Western combines a high, sustainable payout with a measured growth strategy. That makes it a compelling stock to own over the long run. The Williams Companies may not yield as much as the other pipeline companies (its yield is currently around 3.2%) but it's got one of the best growth runways in the sector. Its crown jewel is its Transco pipeline system, which connects Appalachia's natural gas fields to the fast-growing Southeast and Gulf Coast. Transco continues to generate organic expansion projects, driven by coal-to-gas power plant conversions, rising LNG exports, and more recently, data center demand. The company has eight major expansions in its backlog that are scheduled to enter service between now and Q3 2030. Outside of its Transco expansion, Williams is moving into power generation with its Socrates project, a $1.6 billion investment to directly serve growing data center demand in Ohio. It's also taken a 10% stake in Cogentrix Energy, which will give it valuable power market insights to help optimize natural gas supply for next-gen power plants For investors focused more on growth than chasing the highest yield, Williams is an attractive option. Genesis Energy is different from the other stocks on this list. It doesn't have the consistent track record of Enterprise, the massive scale of Energy Transfer, the high yield of Western Midstream, or the growth of Williams. Instead, it's a turnaround story. The company recently sold its soda ash business for $1.4 billion and quickly used the proceeds to aggressively reduce debt and clean up its balance sheet. UBS estimates the move will help Genesis save $84 million a year in interest and preferred dividend payouts, which will boost future cash flow. Genesis is now turning its focus to growing its offshore pipeline system. When the Shenandoah and Salamanca deepwater projects, which will connect to Genesis' pipeline system, come online later this year it will add significant growth. In addition, the company's marine segment is on pace for record earnings this year, as volumes begin to normalize. Taken altogether, Genesis is laying the groundwork to see a significant turnaround in its business. While its yield is more modest at 3.8%, given the change in its cash-flow profile following the sale of its soda ash business and the growth set to come from its offshore pipeline business, it will have an opportunity to significantly ramp up its distribution in the future. Genesis is a higher-risk name, but the stock has strong upside potential if the company can continue to execute. Before you buy stock in Energy Transfer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Energy Transfer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $966,931!* Now, it's worth noting Stock Advisor's total average return is 1,062% — a market-crushing outperformance compared to 177% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Geoffrey Seiler has positions in Energy Transfer, Enterprise Products Partners, Genesis Energy, and Western Midstream Partners. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy. What Are the 5 Best Pipeline Stocks to Buy Right Now? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
My Favorite Ultra-High-Yield Dividend Stocks to Buy With $100 Right Now
Ares Capital offers an exceptionally high dividend yield. Enbridge is a low-risk stock with solid growth prospects and a sterling track record of dividend increases. Enterprise Products Partners is highly resilient and pays a juicy distribution. 10 stocks we like better than Ares Capital › I have a confession to make. I'm much more interested in dividend stocks than I've ever been before. Part of it is that I'm inching closer to retirement. While I don't rely on income from dividend stocks yet, it's appealing to me to have money returned to me regularly to reinvest. Dividend yield isn't my only consideration in selecting dividend stocks, but it's certainly a key consideration. I've found quite a few top-tier stocks with exceptionally high dividend yields, at least 4 times greater than the yield offered by the S&P 500. Many of them don't require a large upfront investment. Here are my favorite ultra-high-yield dividend stocks to buy with $100 right now. Ares Capital (NASDAQ: ARCC) is the largest publicly traded business development company (BDC). It's managed by a subsidiary of Ares Management Corporation, a leading global alternative investment manager. Ares Capital provides direct loans to and invests in private middle-market companies in the U.S. This stock is cheap in two ways. First, its share price of under $22 is easily affordable. Second, Ares Capital's forward price-to-earnings ratio is only 10.7. While I like Ares Capital's valuation, I like its dividend even more. As a BDC, the company must return at least 90% of its income to shareholders as dividends. Ares Capital generates plenty of income to return, as evidenced by its lofty forward dividend yield of 8.95%. The company has paid stable to growing dividends for 63 consecutive quarters and counting. The total addressable market for Ares Capital is estimated to be around $5.4 trillion. The BDC market continues to expand as middle-market companies turn to direct lending. As one of the largest and most respected players in the industry, Ares Capital is well positioned to benefit from this market growth. When I first heard of Enbridge (NYSE: ENB) years ago, the company primarily focused on midstream energy operations. It's still a top player in the midstream energy industry, with 18,085 miles of crude pipeline and 18,952 miles of natural gas pipeline. However, Enbridge is also now the largest natural gas utility in North America and a significant producer of renewable power. I think this diversification makes Enbridge even more attractive. Its business is resilient throughout all economic and commodity cycles. Less than 1% of the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) is linked to commodity prices. And roughly 80% of Enbridge's EBITDA is protected from inflation. Enbridge has increased its dividend for an impressive 30 consecutive years. That streak seems highly likely to continue, considering the company's distributable cash-flow payout ratio is between 60% and 70%. This energy leader is no slouch with the amount of its dividend, either, with a forward dividend yield of 6.07%. You can scoop up one share of Enbridge for less than $45. That investment will buy you partial ownership in a relatively low-risk company that should provide reliable income plus respectable long-term growth prospects thanks to the increasing demand for natural gas. Another of my favorite ultra-high-yield dividend stocks is also a midstream energy leader. Enterprise Products Partners (NYSE: EPD) operates more than 50,000 miles of pipeline and owns assets that include natural gas processing trains and liquids storage facilities. Like Enbridge, Enterprise Products Partners is highly resilient. Around 90% of its long-term contracts are protected from inflation. The master limited partnership (MLP) has consistently generated strong distributable cash flow per unit during good times and bad times, the latter including the financial crisis of 2007 through 2009, the oil price collapse of 2015 through 2017, and the COVID-19 pandemic. Enterprise Products Partners has increased its distribution for 26 consecutive years. Its forward distribution yield is a juicy 6.93%. The MLP has also rewarded unitholders with unit buybacks. One unit of Enterprise Products Partners will cost you around $31. If you also bought a share each of Ares Capital and Enbridge, you'd still have a few dollars remaining from an initial $100. I don't think you'll find three better ultra-high-yield dividend stocks for this low price. Before you buy stock in Ares Capital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Ares Capital wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $704,676!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $950,198!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Keith Speights has positions in Ares Capital, Enbridge, and Enterprise Products Partners. The Motley Fool has positions in and recommends Enbridge. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy. My Favorite Ultra-High-Yield Dividend Stocks to Buy With $100 Right Now was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
My Favorite Ultra-High-Yield Dividend Stocks to Buy With $100 Right Now
Ares Capital offers an exceptionally high dividend yield. Enbridge is a low-risk stock with solid growth prospects and a sterling track record of dividend increases. Enterprise Products Partners is highly resilient and pays a juicy distribution. 10 stocks we like better than Ares Capital › I have a confession to make. I'm much more interested in dividend stocks than I've ever been before. Part of it is that I'm inching closer to retirement. While I don't rely on income from dividend stocks yet, it's appealing to me to have money returned to me regularly to reinvest. Dividend yield isn't my only consideration in selecting dividend stocks, but it's certainly a key consideration. I've found quite a few top-tier stocks with exceptionally high dividend yields, at least 4 times greater than the yield offered by the S&P 500. Many of them don't require a large upfront investment. Here are my favorite ultra-high-yield dividend stocks to buy with $100 right now. Ares Capital (NASDAQ: ARCC) is the largest publicly traded business development company (BDC). It's managed by a subsidiary of Ares Management Corporation, a leading global alternative investment manager. Ares Capital provides direct loans to and invests in private middle-market companies in the U.S. This stock is cheap in two ways. First, its share price of under $22 is easily affordable. Second, Ares Capital's forward price-to-earnings ratio is only 10.7. While I like Ares Capital's valuation, I like its dividend even more. As a BDC, the company must return at least 90% of its income to shareholders as dividends. Ares Capital generates plenty of income to return, as evidenced by its lofty forward dividend yield of 8.95%. The company has paid stable to growing dividends for 63 consecutive quarters and counting. The total addressable market for Ares Capital is estimated to be around $5.4 trillion. The BDC market continues to expand as middle-market companies turn to direct lending. As one of the largest and most respected players in the industry, Ares Capital is well positioned to benefit from this market growth. When I first heard of Enbridge (NYSE: ENB) years ago, the company primarily focused on midstream energy operations. It's still a top player in the midstream energy industry, with 18,085 miles of crude pipeline and 18,952 miles of natural gas pipeline. However, Enbridge is also now the largest natural gas utility in North America and a significant producer of renewable power. I think this diversification makes Enbridge even more attractive. Its business is resilient throughout all economic and commodity cycles. Less than 1% of the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) is linked to commodity prices. And roughly 80% of Enbridge's EBITDA is protected from inflation. Enbridge has increased its dividend for an impressive 30 consecutive years. That streak seems highly likely to continue, considering the company's distributable cash-flow payout ratio is between 60% and 70%. This energy leader is no slouch with the amount of its dividend, either, with a forward dividend yield of 6.07%. You can scoop up one share of Enbridge for less than $45. That investment will buy you partial ownership in a relatively low-risk company that should provide reliable income plus respectable long-term growth prospects thanks to the increasing demand for natural gas. Another of my favorite ultra-high-yield dividend stocks is also a midstream energy leader. Enterprise Products Partners (NYSE: EPD) operates more than 50,000 miles of pipeline and owns assets that include natural gas processing trains and liquids storage facilities. Like Enbridge, Enterprise Products Partners is highly resilient. Around 90% of its long-term contracts are protected from inflation. The master limited partnership (MLP) has consistently generated strong distributable cash flow per unit during good times and bad times, the latter including the financial crisis of 2007 through 2009, the oil price collapse of 2015 through 2017, and the COVID-19 pandemic. Enterprise Products Partners has increased its distribution for 26 consecutive years. Its forward distribution yield is a juicy 6.93%. The MLP has also rewarded unitholders with unit buybacks. One unit of Enterprise Products Partners will cost you around $31. If you also bought a share each of Ares Capital and Enbridge, you'd still have a few dollars remaining from an initial $100. I don't think you'll find three better ultra-high-yield dividend stocks for this low price. Before you buy stock in Ares Capital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Ares Capital wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $704,676!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $950,198!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Keith Speights has positions in Ares Capital, Enbridge, and Enterprise Products Partners. The Motley Fool has positions in and recommends Enbridge. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy. My Favorite Ultra-High-Yield Dividend Stocks to Buy With $100 Right Now was originally published by The Motley Fool
Yahoo
24-06-2025
- Business
- Yahoo
Could Buying Enterprise Products Partners Today Set You Up for Life?
Enterprise Products Partners is a midstream master limited partnership. The business has supported a steadily growing distribution. Enterprise's distribution yield is a lofty 6.8% today. 10 stocks we like better than Enterprise Products Partners › One of the best ways to ensure an investment can reward you well for the rest of your life is to buy reliable, high-yield stocks. On that front, Enterprise Products Partners (NYSE: EPD) stands out. A well-above-market distribution yield of 6.8% is one reason for that, but so is the strength of the midstream master limited partnership's (MLP's) business and its impressive distribution history. Here's what you need to know before buying. Enterprise Products Partners owns energy infrastructure, including pipelines, storage, processing, and transportation assets. It operates in what is generally referred to as the "midstream" segment of the overall energy sector. This is very important if you are looking to set yourself up with a reliable income stream for the rest of your life. The "upstream" is where oil and natural gas are produced. The "downstream" is where these commodities are processed. Financial results in both the upstream and the downstream are heavily influenced by often volatile commodity prices. The midstream, which basically connects the upstream to the downstream (and the rest of the world), isn't. Midstream businesses generally charge fees for the use of their energy assets. So, demand for energy, which tends to be fairly robust through the economic cycle, is more important to financial results. Basically, Enterprise Products Partners' core business is designed to produce reliable cash flows. And those cash flows support the MLP's lofty 6.8% distribution yield. That yield is likely to make up the lion's share of an investor's return over time, but that probably won't be a problem for income-oriented investors. Enterprise Products Partners' business is designed to generate reliable cash flows, but what does history say about its ability to set you up with a lifetime of reliable distributions? Well, a lot. For starters, Enterprise has increased its distribution annually for 26 consecutive years. That notably includes increases during the coronavirus pandemic and the oil downturn in 2016, both times when it would have been easy to justify a distribution cut. In fact, peers did cut their distributions in both of those periods, including Energy Transfer (NYSE: ET) in 2020 and Kinder Morgan (NYSE: KMI) in 2016. If you are looking for a reliable income investment, Enterprise Products Partners stands out. But there's more to like here than just the distribution streak. For example, Enterprise Products Partners has an investment-grade-rated balance sheet. The distribution is covered 1.7x by the MLP's distributable cash flow. Essentially, there is a lot of room for adversity before a distribution cut would likely be on the table. The distribution seems highly likely to keep growing, as well. The first reason is inherent to the midstream business. Increasing the fees charged along with inflation is the industry norm. Meanwhile, Enterprise has a long history of growing through capital investment projects, with a $7.6 billion capital plan currently in the works. On top of those two growth levers, Enterprise happens to be large enough to act as an industry consolidator. So, the occasional acquisition is a further growth driver to keep in mind, though acquisitions are impossible to predict. The one caveat here is that the world is increasingly using cleaner energy sources. However, the transition is likely to take decades, and it is far more likely that an all-of-the-above strategy (that includes carbon fuels) will be the final outcome. Don't count Enterprise out because it deals with carbon energy. All in, if you are looking for an investment that can set you up with a lifetime of income, Enterprise Products Partners and its lofty 6.8% distribution yield should be on your shortlist today. Before you buy stock in Enterprise Products Partners, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Enterprise Products Partners wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $676,023!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,692!* Now, it's worth noting Stock Advisor's total average return is 793% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kinder Morgan. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy. Could Buying Enterprise Products Partners Today Set You Up for Life? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-06-2025
- Business
- Yahoo
1 High-Yield Midstream Stock to Buy With $10,000 and Hold Forever
Investors looking for high yields have plenty of options in the midstream sector. It isn't a good idea to focus only on yield when looking at midstream stocks. The business that backs the yield is often more important than the yield. 10 stocks we like better than Enterprise Products Partners › Investors looking for high yields would be remiss if they didn't dig into the midstream energy sector. But don't just buy any midstream business, because there are risky high-yield investments here, and some businesses have less-than-impressive histories. Here are some examples of businesses to be leery of, and one high-yield midstream business worth buying and holding forever. When you look at high-yield investments, you have to make sure you understand why the yields are so high. In the midstream space, yields are high across the board because the sector is largely focused on producing income for shareholders. So, generally speaking, midstream stocks usually have attractive yields. But not all high yields are created equally. For example, USA Compression Partners (NYSE: USAC) has a lofty 8.3% yield. But the business is run with more leverage than many other businesses in the sector. To put a number on that, the debt-to-earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio is around 4.4x today. That's above the 3.7x of Energy Transfer (NYSE: ET), the business that is USA Compression Partners' general partner and, thus, runs it, and well above the 3.2x of Enterprise Products Partners (NYSE: EPD), one of the most conservative players in the midstream sector. What's interesting here is that Energy Transfer has a 7.3% yield, which is pretty attractive, too. But Energy Transfer cut its dividend in 2020 during the coronavirus pandemic. That was likely a time when most income investors would have preferred a little dividend consistency. Once again, there are problems with the income story that shouldn't be ignored. This brings things back to Enterprise, which has the lowest yield of the three at 6.8%. If you have $10,000 to put to work, do you want to invest in a highly leveraged business or one that cut its distribution when faced with adversity? You'll probably want to entrust your hard-earned savings to a business that has been a little more reliable. Note that Enterprise has long been conservatively operated and had an industry-leading debt-to-EBITDA ratio. Income investors are usually risk-averse, so buying Enterprise will keep you in your comfort zone on that score. But there's more to the story. Enterprise has increased its distribution every year for 26 consecutive years. That streak includes increases during the pandemic, the Great Recession, and the dot-com crash. Being a reliable income investment is clearly something Enterprise prioritizes. The distribution, meanwhile, is backed by an investment-grade-rated balance sheet. And Enterprise's distributable cash flow covers its distribution by a very strong 1.7x. There is a lot of leeway here before Enterprise would be at risk of a distribution cut. Given the $7.6 billion in capital investment projects underway, it seems far more likely that the slow and steady distribution increases will continue. Last but not least, insiders own nearly a third of Enterprise Products Partners' units. So management is fairly well aligned with unit holders, which is backed up by the business being financially conservative and providing a steady, and growing, income stream. If you are going to put your savings to work in an income investment, Enterprise is a very strong candidate, and one you can buy today and hold for the long term. To be fair, like most midstream businesses, Enterprise's yield is going to make up the lion's share of return here. But if you are an income investor, that probably won't bother you. And given all the positives, a $10,000 investment in this reliable and financially strong income producer seems like a pretty attractive long-term proposition for investors who like to buy and hold. Before you buy stock in Enterprise Products Partners, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Enterprise Products Partners wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy. 1 High-Yield Midstream Stock to Buy With $10,000 and Hold Forever was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
