The energy sector offers investors some of the best opportunities to generate income. Many companies boast dividend yields significantly above the S&P 500 's 1.7% average.
Two standouts are Energy Transfer (NYSE: ET) and Crestwood Equity Partners (NYSE: CEQP) . The master limited partnerships (MLPs) offer monster yields and are about to hit a critical inflection point. That makes them great options for income-seeking investors to buy this year and hold for the long haul.
Energy Transfer's distribution currently yields 8.4%. That big-time payout is on an increasingly sustainable foundation. The MLP grew its earnings and distributable cash flow by 20% in the third quarter, fueled by improving market conditions, expansion projects, and the acquisitions of Enable Midstream and Woodford Express. The pipeline company produced enough cash to cover its massive distribution by 1.93 times in the period, enabling it to generate $760 million in excess cash flow. That gave it the money to cover capital expenditures and strengthen its balance sheet.
For further details see:
2 Ultra-High-Yield Energy Stocks to Buy in 2023 and Beyond