It’s no secret that the energy sector has been a top performer, as we’ve been forced to grapple with higher prices and supply constraints. A prime example of the sector’s performance has been our latest Best High Yield Dividend Stocks Model Portfolio pick, which has managed to return 2.8% on price since March 17, 2022, when it was added to our portfolio. Better still has been its top 7.6% yield, which investors can catch before the stock goes ex-dividend on Thursday, July 28 when it raises its quarterly payable dividend by 2.2% to $0.475 per share.
Our pick is one of the largest midstream firms in the nation, with a vast network of pipelines crisscrossing North America. These assets form a vital linkage in the energy value chain. As such, our pick scores plenty of steady toll-road fee revenue from its pipelines and terminals.
But, despite its size, our pick also has plenty of growth behind it. Thanks to its huge cash flows, our pick has continued to find expansion projects and bolt-on M&A transactions. These projects – balanced between toll-road revenues and more commodity-priced focused processing – have continued to boost cash flows and dividends. In fact, our pick boasts a 20+ year dividend increase track record.
In the end, our midstream pick makes a great high-yielding play with plenty of stability.
You can check out the Best High Dividend Stocks Model Portfolio to explore all the stocks.
