3 Pipeline Stocks to Buy with Dividends Yielding More than 4%
The pipeline sector has long been an excellent place for income investors because these companies often pay out a large percentage of their cash flow in dividends each year. Because of that, yields tend to be well above average, which is certainly the case with ONEOK (NYSE: OKE), Enbridge (NYSE: ENB), and Phillips 66 Partners (NYSE: PSXP). What's more, these three companies combine a high current yield with a lower risk profile and visible growth opportunities, which makes them excellent stocks for income-focused investors.
This past February, pipeline and processing giant ONEOK announced that it had agreed to acquire all the outstanding units of its MLP that it didn't already own because the combination would improve its balance sheet while also reducing complexity and costs. Furthermore, the transaction would enable the company to immediately boost its dividend 21% while setting it up to deliver 9% to 11% annual increases from 2018 through 2021, even as it projected to maintain a healthy 1.2 times dividend coverage ratio, which made it a potential gold mine for income seekers.
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Source: Fool.com
Plains All American Pipeline LP Stock
Currently there is a rather positive sentiment for Plains All American Pipeline LP with 9 Buy predictions and 3 Sell predictions.
With a target price of 16 € there is potential for a 174.96% increase which would mean more than doubling the current price of 5.82 € for Plains All American Pipeline LP.
