2 Ultra-High-Yield Energy Stocks to Buy Hand Over Fist and 1 To Avoid
Oil and gas prices have skyrocketed this year. That's giving energy companies more money to expand their operations and pay lucrative dividends. Several energy stocks offer much higher dividend yields than the S&P 500's relatively paltry 1.6% payout.
A couple of ultra-high-yield energy stocks worth buying hand over fist these days are Crestwood Equity Partners (NYSE: CEQP) and Enterprise Products Partners (NYSE: EPD). Crestwood currently has a 9% dividend yield while Enterprise yields 6.8%. However, not all big-time dividends in the energy sector are worth buying. Investors should avoid BP Prudhoe Bay Royalty Trust (NYSE: BPT) and its 7.1%-yielding dividend.
Crestwood Equity Partners is a master limited partnership (MLP) that operates gathering and processing infrastructure across the country's top three production regions. It generates steady fee-based income as oil, natural gas, and water flow through its pipelines and other infrastructure. That gives the MLP a steady cash flow stream to support its big-time dividend.
Source Fool.com
