Here's What $1,000 in These 6 Energy Dividend Stocks Could Pay You in a Year
If you are looking to generate income from the energy sector, these six dividend stocks will likely show up on your screens.
Overview
Western Midstream Partners (NYSE: WES) has an 8.1% yield as of this writing. That's the highest yield among this list of six income investments: Western Midstream, Energy Transfer (TXSE: ET), Enterprise Products Partners (NYSE: EPD), MPLX LP (NYSE: MPLX), Enbridge (NYSE: ENB), and ExxonMobil (NYSE: XOM). Exxon has the lowest yield at "just" 2.5%, which is still vastly higher than the S&P 500 index's (SNPINDEX: ^GSPC) 1%.
Here's a quick look at this list and how much income a $1,000 investment in each business would generate in a year.
Details
Midstream businesses own energy infrastructure assets such as pipelines, storage, and transportation facilities. They largely charge fees for the use of their assets, so the volume flowing through their systems is more important than the price of what is being moved. In other words, oil and natural gas prices aren't the biggest determinant of success; demand for energy is. Demand tends to be strong even when oil prices are low and during economic downturns because the fuel is so important to the normal functioning of the world. Midstream businesses are fairly reliable income generators and often pass a significant portion of their earnings to unitholders or shareholders as distributions or dividends.
Source
Originally published at www.fool.com.