ET - 2 Ultra-High-Yield Energy Stocks to Buy Hand Over Fist and 1 to Avoid
2024-07-17 04:40:00 ET
The energy sector is known for being volatile, given that oil and natural gas are commodities. But there's one niche in the energy sector that tends to be far less volatile -- the midstream. Yet all midstream companies are not created equal.
If you are looking for an ultra-high-yield investment, consider midstream giants Enterprise Products Partners (NYSE: EPD) and Enbridge (NYSE: ENB) . Meanwhile, you'll probably want to avoid Energy Transfer (NYSE: ET) if you want a reliable income stream.
The upstream segment of the energy sector is filled with companies that produce oil and natural gas. Given that the prices of these commodities can fluctuate wildly over time, the revenue that upstream companies bring in is highly volatile. It costs a lot to drill for oil and natural gas, so falling energy prices can often lead to red ink.
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2 Ultra-High-Yield Energy Stocks to Buy Hand Over Fist and 1 to Avoid