Why Midstream Stocks Will Thrive During a Recession

Oil prices cratered in 2020 thanks to falling demand for the fuel, actually pushing key U.S. benchmark West Texas Intermediate (WTI) briefly below zero at one point. But midstream industry giants Enterprise Products Partners (NYSE: EPD), Enbridge (NYSE: ENB), and Kinder Morgan (NYSE: KMI) increased their dividends just the same. That's why dividend investors should be comfortable sticking with the midstream sector right through a recession.

When you first think about energy, it's likely that giant integrated oil companies like ExxonMobil and Chevron come to mind. That makes sense, given their importance to the sector. But it is their core business model that is really worth understanding. They own assets across the entire industry, from drilling (upstream) to processing (downstream), and everything in between. The goal is to create a diversified portfolio that can weather the inherent ups and downs in the commodity-driven industry.

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Source Fool.com