2 Reliable Dividend Stocks to Buy Hand Over Fist and 1 to Avoid
If you are looking for big dividend yields, then a good place to start your search is the midstream segment of the energy sector. But don't blindly buy the highest yielders -- they can come with more risk than you expect. That's why you should probably avoid Energy Transfer (NYSE: ET), which yields 8.1% at its current share price. But the 7% yield from Enterprise Products Partners (NYSE: EPD) and the 7.8% yield from Enbridge (NYSE: ENB) are both rock solid.
Energy Transfer cut its dividend in half in 2020 during the deep energy-sector downturn that was caused by the coronavirus pandemic. That alone is good enough reason for investors to look upon the midstream giant's big 8.1% yield with a little trepidation. But if you go back to 2016 or so, when Energy Transfer was trying to buy Williams Companies (NYSE: WMB), you'll find an even bigger reason to worry.
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Source Fool.com
