Energy midstream sector: a strong contender for dividend portfolio
It's not dependent on energy spot prices, plus its current dividend yield of about 5.3% is not only higher than Reit and utility sectors, but also the US high-yield bond segment
THE overlooked midstream sector commands one of the highest yields in the US market today. Coupled with their strong fundamentals, it's time for investors to start paying attention to this space.
In the current low interest-rate environment, dividend-yielding stocks tend to stand out as investors seek alternatives to generate higher returns for their portfolios. Hence, we have seen investors flocking to typical yield plays, such as Reits and utility stocks, given their attractive income prospects. However, we believe investors may have neglected the energy midstream sector, which currently offers one of the highest dividend yields in the market.
Energy midstream sector explained
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