3 Pipeline Stocks to Buy in March
For investors seeking a steady, passive stream of income, the energy midstream sector is a good option. While oil and gas prices can be volatile, pipeline stocks largely function as energy toll roads and tend to have predictable cash flows through long-term transportation contracts. As a result, they pay out strong and stable distributions.
Let's look at three pipeline master limited partnerships (MLPs) I've been buying this month.
Energy Transfer (NYSE: ET) offers a great combination of an attractive yield, currently sitting at 7.1%, and solid growth opportunities. The company has cleaned up its balance sheet and has a strong distribution coverage ratio, which came in at nearly 1.8 times last quarter. Meanwhile, it is looking to grow its distribution at a 3% to 5% yearly pace moving forward.
Source Fool.com
