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Just saying energy stocks is quite a bit of a misnomer.

The industry casts a wide net and covers a variety of firms across the entire value chain. From producers to refiners, there are a lot of different stocks to choose from. But for income investors, there’s only one place to go. And that’s right smack in the middle.

Moving crude oil and natural gas, the midstream subsector of the energy industry has long been a great place to find dividends and gains. Thanks to their steady, toll road-like nature and stable cash flows, midstream firms feature strong yields and cash flow generation. And that’s been true for our Best Dividend Stocks List pick in the sector. Since adding our pick to our coveted list back in the winter of 2017, our selection is up nearly 22% and has paid some handsome dividends.

And our pick’s best days could still be ahead.

Recent moves to expand its presence in key natural gas-producing areas as well as adding a hefty dose of regulated intrastate pipelines will continue to strengthen the firm’s cash flows and dividend potential. At the same time, hotter summers and colder winters have only increased the demand for natural gas – the primary fuel distributed by the company. Add in a very important European expansion a few quarters ago and our pick’s rosy future has begun to take shape.

All in all, our midstream-focused utility pick has the goods to keep the income and gains coming.

To summarize, here are five reasons why you should own this stock:

  1. Paid common dividends for well over a century and increased its dividends annually for more than 30 years.
  2. Vast regional monopoly in a highly populated area of the country.
  3. Moved quickly to add additional gathering and trunk lines in some of the largest natural gas-producing fields in the world.
  4. Wide net of gas distribution assets in 17 countries.
  5. Healthy payout ratio of nearly 38% and growing yield of 1.93%.

Check out our original take on the stock here.

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