OXY - Shopping For Income? Don't Ignore 9%-Yielding Western Midstream Partners

2024-05-20 13:54:06 ET

Summary

• Western Midstream Partners, LP is an undervalued midstream MLP with a 9.1% distribution yield.
• The company benefits from its strategic position in the Permian Basin and strong financials backed by Occidental Petroleum.
• Western Midstream Partners offers a high distribution yield, steady cash flow, and potential for capital appreciation, making it an attractive opportunity for income-focused investors.

Introduction

I have often said that elevated yields tend to make me somewhat nervous, as the risk of buying a "sucker yield" becomes increasingly bigger the higher the yield.

As I wrote in a recent article , a company can control its dividend. It cannot control its dividend yield. That's where the market comes in....

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