Every income investor wants to own high-yield stocks. And yet, in today’s market, most double-digit yielders are having a hard time finding an audience. The reason is simple: high-yield stocks are not known for their dividend safety. In an era where a four percent payout qualifies as high yield, it would take an extremely generous dividend policy to support a 10% payout. And if the dividend is safe, investors would rush to buy the stock, bidding up its price so that it would no longer offer such a generous yield. In other words, if a company’s yield stays consistently at a very high level, chances are the payout wouldn’t be sustainable.
But there are exceptions. Energy Transfer Partners LP (NYSE:ETP), for instance, offers investors a staggering annual yield of 13.7%. And yet it has more than enough resources to cover its payout. Headquartered in Dallas, Texas, Energy Transfer Partners is in the pipeline business. The partnership’s portfolio consists of approximately 61,000 miles of natural gas pipelines and approximately 2,000 miles of natural gas liquid (NGL) transportation pipelines. Through ETP’s investment in Sunoco Logistics, the partnership has another 8,600 miles of crude oil and NGL and refined products pipelines.
Source: Income Investors
Related Articles:
- 3 Stocks Increasing Dividends Like A Champion
- The Next Great Company
- 5 Stocks With a Sustainable Dividend
- Dividend Investing + Value Investing = Superior Returns
- The Dark Side of Dividends
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Utility stocks have been relatively volatile in the recent past. However, most utility stocks have a low beta and have a stable cash flow vi...
-
Many investors search for safe, dividend-paying stocks. As John D. Rockefeller once said: "Do you know the only thing that gives me ple...
-
Dividend stocks have fallen out of fashion during the pandemic. With interest rates at rock-bottom levels, investors have fled from assets l...
-
One way to identify suitable candidates is to look for stocks with an average dividend yield of 3%, and positive average annual dividend gro...
-
With interest rates near zero, many investors are turning to dividend stocks for income. And for some investors, the higher the yield, the b...
-
The U.S. economy officially entered into a recession in February, and challenging conditions will likely continue in the near future. The co...
-
Energy Transfer (NYSE:ET) pays a monster cash distribution. Given the big slide in its unit price, -- they're down more than 50% in the ...
-
The rollout of fifth-generation network services, also known as 5G, enhances the appeal of each of these three dividend-paying, 5G technolog...
-
Prices of energy commodities like natural gas are important for consumers and investors alike. Earlier in the year, natural gas prices in th...
-
Unfortunately, some investors that are new to dividend stocks end up chasing the highest yield stocks they can find and end up getting burne...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.