There’s no doubt that energy prices have been volatile over the last year or so. Fluctuations in inflation along with supply/demand issues have put pressure on the stocks in the sector. However, avoiding this ebb and flow of the sector have been the midstream names. And our latest Best Dividend Capture Stocks List pick happens to be one of the best around!
You can check out the Best Dividend Capture Stocks List to explore all the stocks.
The secret is our pick’s focus on natural gas and natural gas liquids (NGLs). Natural gas has quickly emerged as a lower carbon bridge source of energy, boosting its demand domestically and overseas. Our pick owns plenty of gathering, trunk and processing lines across some of the largest shale fields in the nation. Moreover, this includes export facilities for a variety of NGL fuels and derivatives. This focus has continued to provide plenty of steady cash flow for our pick. Long-term contracts with some of the energy sector’s largest players have also helped.
Our pick has continued to find growth through bolt-on acquisitions of smaller rivals as well as instantly accreditive projects in its existing operating areas. Perhaps the best part from a few years back is that our pick purchased all its MLP units and now trades a C-Corp. This has allowed more institutional investors to purchase its stock and help continue its stellar performance over the years.
For dividend investors, you get a top-notch midstream firm with plenty of cash flow, ways to grow and solid clients. With that, our pick makes for a great dividend capture play. A dividend capture strategy involves buying a stock before its ex-dividend date and then selling it after it has recovered the payout. With an ex-dividend date of Monday, October 30, our pick is primed for the strategy, as is evident from its historical track record of a recovery period within an average of 1.1 days after going ex-dividend.
For investors looking for a quick total return of income and capital appreciation, our latest energy infrastructure pick could be a lucrative option.
