2 Top Ultra-High-Yield Dividend Stocks to Buy in March
The S 500's dividend yield is a rather pedestrian 1.4% these days. At that rate, you could earn about $14 of annual dividend income for every $1,000 invested in an S 500 index fund.
Many stocks offer higher yields -- some considerably more. One of the more compelling options for yield-seeking investors is master limited partnerships (MLPs). While MLPs can complicate your taxes (they send K-1s instead of 1099-DIVs), the extra income can be well worth it. Top MLPs Energy Transfer (NYSE: ET) and (NYSE: MPLX) currently yield over 8%. At that rate, a $1,000 investment would generate over $80 in annual income.
Energy Transfer offers an 8.3%-yielding distribution. That monster payout is very bankable. The midstream giant generates stable cash flow of roughly $7.5 billion annually because fees supply about 90% of its earnings. Meanwhile, the company pays out a conservative portion of its steady cash flow (around 50%, or $4 billion). That gives it a huge cushion while enabling it to retain money to fund its organic expansion program ($2 billion-$3 billion annually) with room to spare. It uses its excess free cash (about $500 million to $1.5 billion per year) to maintain a strong balance sheet and opportunistically repurchase its units.
Source Fool.com
MPLX L.P. Stock
MPLX L.P. is currently one of the favorites of our community with 11 Buy predictions and no Sell predictions.
Based on the current price of 11.77 € the target price of 42 € shows a potential of 256.84% for MPLX L.P. which would more than double the current price.
