EPD - 3 No-Brainer Dividend Stocks for a Volatile Oil Market
2023-10-29 05:11:00 ET
Oil prices are notoriously volatile. In the past three years, the primary U.S. oil price benchmark, West Texas Intermediate, has ranged from a low of around $35 a barrel to a peak of more than $120. That volatility greatly affects the cash flows of companies focused on producing oil, which can affect their ability to pay dividends.
However, some energy stocks are relatively immune to the impacts of oil price volatility. Enbridge (NYSE: ENB) , Energy Transfer (NYSE: ET) , and Enterprise Products Partners (NYSE: EPD) stand out to a few Fool.com contributors as ideal oil dividend stocks because of their ability to withstand the ebbs and flows of oil prices. Here's a look at why they believe these energy companies are no-brainers for those seeking steady income from the oil patch.
Reuben Gregg Brewer (Enbridge): With a dividend yield of 8.1% backed by a dividend that has been increased annually for 28 consecutive years, there's a lot for dividend investors to like about Enbridge. This $68 billion market cap Canadian-based midstream giant clearly has some impressive dividend bona fides, but the really notable issue is that volatile energy prices aren't the driving force behind the business.
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3 No-Brainer Dividend Stocks for a Volatile Oil Market