DCP - Why You Won't Want to Miss What's Happening With These High-Yield Dividend Stocks
The energy sector offers investors a great way to score a high dividend yield. The average energy stock currently yields around 4%, more than double that of the S&P 500 .
While high-yield dividend stocks can be at higher risk of reducing their dividend during tough times, many energy companies are taking steps to minimize this risk. One way they do that is by optimizing their portfolios to enhance their strategic focus and cash flows. That has been a key theme for the energy midstream sector over the last few months. Several of these companies made moves to strengthen their portfolios, which should put their high-yielding dividends on a more sustainable foundation.
Canadian energy infrastructure giant Enbridge (NYSE: ENB) has completed two transactions to enhance its U.S. Gulf Coast export strategy. In the first deal, Enbridge made a trade with refining giant Phillips 66 (NYSE: PSX) to increase its ownership in the Gray Oak oil pipeline from 22.75% to 58.5%. In exchange, it decreased its interest in DCP Midstream (NYSE: DCP) from 28.25% to 13.2%. Enbridge also received $400 million in cash to balance out the trade.
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Why You Won't Want to Miss What's Happening With These High-Yield Dividend Stocks