Oil & gas pipeline operators transport fuel through pipelines, often over great distances.
Most of these companies are structured as Master Limited Partnerships (MLPs), which helps limit costs by passing tax obligations along to shareholders.
Since MLPs are required to distribute the vast majority of their earnings to shareholders, these stocks usually offer very high dividend yields.
Master Limited Partnerships have the same liquid trading characteristics as common stock, yet they are very different from common stocks. The most obvious difference is that MLP's are 'pass through' investment vehicles--they pass through the income to you the investor.
The Partnership pays no taxes at the company level--instead passing the income to you (and of course you likely pay taxes on the income). Thus one level of taxation is removed allowing the investor to receive a larger distribution.
Today I like to show you some of the highest yielding oil and gas pipeline stocks on the market. Pipelines generate stable revenues while having a clear benefit compared to railroad and transportation stocks in terms of CO2 emissions.
Here is a table of 15 high-yield oil and gas pipeline partnerships...
Most investors know Warren Buffett looks for quality, but few know the degree to which he invests in dividend stocks.
Warren is one of the most respected investors in the world.
I did a great job and generated an unbelievable return over decades.
Here are some key essentials of his current investment strategy:
- 92.5% of Warren Buffett’s portfolio is invested in dividend stocks
- His top 9 holdings have an average dividend yield of 3.0%
- Many of these dividend stocks have paid rising dividends over decades
Warren Buffett prefers to invest in shareholder friendly businesses with long track records of success.
It happens that dividend stocks with long histories of dividend increases match what Warren Buffett looks for in a stock investment.
Attached you will find a compilation of Warren Buffett's 20 best yielding stocks. The list contains all of his highest yielding stocks with the most important fundamentals.
Here are Warren Buffett's 5 top yielding dividend stocks....
When it comes to high-yield stocks, many big payouts are too good to be true. To look for more sustainable dividends, the highest asset class in this category are dividend Aristocrats.
The Dividend Aristocrats Index is comprised of 50 stocks that have paid dividends for 25+ consecutive years.
It's one of the safest dividend indexes you can find in this world. Each stock is qualified as a top tier investment.
Dividend Aristocrats must also:
- Be members of the S&P 500 Index
- Meet certain size and liquidity requirements.
What’s the big deal about being a Dividend Aristocrat?
The Dividend Aristocrats Index has outperformed the market by a wide margin over the last decade.
So, today I'll be looking at such dividend aristocrats that are recording decades of dividend growth while also yielding at least 2.87%. Those are the 20 best yielding index members.
Only a limited amount of stocks are now available with such big yields.
Here are the results...
With interest rates now having spent years near their all-time lows, many investors who might prefer safer assets have moved to dividend stocks as a way to generate income from their investments.
The problem with this strategy is that it only works if the companies that have been mailing out those dividend checks can afford to keep doing so.
Therefore, income investors should probably avoid putting their money into any company that is currently experiencing a financial hardship that might threaten its ability to continue making dividend payments.
I started my research by screening the Dividend Champions list by stocks with unsustainable dividend measures. High payouts, high debt, low growth and a cyclic business model are key drivers for an unsustainable dividend.
Each of the attached results grown its dividend over 10 consecutive years.
Here are the results from my research, sorted by highest debt load...
The S&P 500 is already off more than 8%, which means the benchmark index has lost more than 1.7% per week on average for every full week of trading.
If anything, it’s highly unlikely that markets will keep falling so quickly — at that pace, most of the stock market would evaporate by the end of the year.
But any continued losses are unwelcome losses, so investors are rapidly fleeing to more risk-light assets. The problem is the 10-year Treasury yield now yields a mere 1.74%, and many traditional safe-haven stocks have actually enjoyed buying amid the downturn, helping to drive down their yields.
Investors do have a few options for meaningful yield, though. The very downturn that has investors scurrying to find safe-havens has created a bevy of cheap dividend stocks to buy, most of which yield about two or three times the miserable yield on the 10-year.
Here are the results...
