NYSE:EPD - New York Stock Exchange, Inc. - US2937921078 - Currency: USD
Here's why, despite the energy sector's inherent volatility, conservative dividend investors will love high-yield Enterprise Products Partners (NYSE: EPD) and Enbridge (NYSE: ENB). From a high-level view of the energy sector, raw oil and natural gas are pulled from the ground and then moved to another location, where they can be processed into useful products. Both of these segments of the energy sector are commodity driven.
"Mad Money" host Jim Cramer recommends buying Lam Research; Keybanc analyst Steve Barger upgraded the stock to Overweight.
Enterprise Products Partners (NYSE: EPD) is a popular income investment, and rightly so. The master limited partnership (MLP) has increased its distribution for 26 straight years. Investors who like that big-time income stream should check out fellow MLP Delek Logistics Partners (NYSE: DKL).
For example, Kinder Morgan (NYSE: KMI) has seen a material price advance and now yields a relatively tiny 4.1%. You can do over two percentage points better with investments in its midstream energy peers Enterprise Products Partners (NYSE: EPD) or Enbridge (NYSE: ENB).
If you have honed in on Energy Transfer (NYSE: ET) and its 6.7% distribution yield, you might want to instead consider Enterprise Products Partners (NYSE: EPD) and its slightly lower 6.4% yield. There are two specific examples that should lead income investors to avoid Energy Transfer.
Non-leveraged funds with some of the top returns in 2024 include two cryptocurrency-focused products and one ETF tracking an index of midstream energy names.
Pipeline companies rallied sharply in November. Natural gas pipeline giant Kinder Morgan (NYSE: KMI) rallied 15.1%, according to data provided by S&P Global Market Intelligence. Meanwhile, leading master limited partnerships (MLPs) Energy Transfer (NYSE: ET) and Enterprise Products Partners (NYSE: EPD) were both up more than 20%.