HESM - Hess Midstream: A 7%-Yielding Billionaire-Like Income Play
2024-01-29 07:30:00 ET
Summary
- Infrastructure investments offer defensive characteristics, stability, and exposure to long-term growth drivers, making them attractive to billionaires.
- Hess Midstream is a standout player in the Bakken shale plays, offering a fee-based model and essential midstream assets for stable income.
- HESM targets 5% annual distribution growth, has a current yield of 7.3%, and offers an attractive valuation with strong growth prospects.
Why Billionaires Love Infrastructure
I'm a big fan of infrastructure investments. While there are a lot of pitfalls - like in any industry/sector - infrastructure often comes with wide moats, recurring revenues, and safety.
On November 17, I co-wrote an article titled "Brookfield Infrastructure: A Billionaire's Blueprint For Wealth Creation."
While I have to admit that adding the word "billionaire" to any title makes it more fancy, I'm not doing it for clickbait reasons. As I wrote in the November 17 article, billionaires LOVE infrastructure....
Hess Midstream: A 7%-Yielding Billionaire-Like Income Play