economy
High-yielding energy names are on fire. These are Wall Street's favorites
Investors looking to ride the wave of accelerated U.S. energy demand can also find attractive income in one corner of the market.
TL;DR
- MLPs offer high dividend yields due to their tax-friendly structure.
- Increased U.S. energy demand, partly due to global conflicts and LNG exports, benefits MLPs.
- The growth in data center construction is also a positive driver for the sector.
- While beneficial, MLPs involve complicated tax reporting via Schedule K-1 forms.
- The Global X MLP & Energy Infrastructure ETF (MLPX) has reached an all-time high and offers a nearly 4% dividend yield.
- Williams Companies is favored for its natural gas infrastructure and strategic pipeline system.
- Energy Transfer boasts a high dividend yield and is recognized for its diversified portfolio.
- Kodiak Gas Services is recommended for its growing, premium-priced model in the Permian region.