Energy Transfer vs. MPLX: Which Pipeline Giant's High-Yield Dividend Is Actually Safer?
Both stocks deliver above-average yields, but one is definitely safer, and that one might surprise you.
Overview
Dividend-oriented investors carefully look at a stock's dividend yield. There's often a high-but-safe spot, generally around 3% to 4%, and stocks that deliver yields above that are generally considered riskier.
However, when you look at pipeline or midstream energy stocks, the yield is higher, generally between 5% and 8%, because these companies generate highly predictable, fee-based cash flows backed by long-term, take-or-pay contracts.
Details
Two of the most popular pipeline stocks with high yields are MPLX (NYSE: MPLX) and Energy Transfer (NYSE: ET), both of which deliver dividends above 6%. Let's see which has the safer dividend.
Source
Originally published at www.fool.com.