WES - This Famous Billionaire Investor Likes This Relatively Unknown Ultra-High-Yield Dividend Stock
2024-03-26 05:14:00 ET
Bill Gross made a name for himself (and a lot of money) by investing in bonds. Nicknamed the "Bond King," Gross ran Pimco's Total Return Bond Fund for decades, enriching himself (he's worth an estimated $2.5 billion) and investors in that fund.
Today, Gross dabbles more in equities. One asset class he likes is master limited partnerships ( MLPs ). While MLPs can complicate your taxes (they send K-1s instead of 1099-DIVs), they supply tax-deferred income, which Gross likes. His current favorite is Western Midstream Partners (NYSE: WES) . Here's why.
Bill Gross has been highlighting the value proposition of MLPs for a while now. He noted that the oil and gas pipeline operators offer hefty dividend yields , with much of that income tax deferred. That makes them compelling investment opportunities, especially in today's seemingly overheated market, where the S&P 500 and Nasdaq 100 trade at lofty multiples (23.5 times earnings for the S&P 500 and over 31 times for the Nasdaq). Investors have driven up the value of most stocks, especially the " Magnificent Seven ," due to euphoria over AI and other catalysts.
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This Famous Billionaire Investor Likes This Relatively Unknown Ultra-High-Yield Dividend Stock