Energy commodity prices have been extremely volatile of late. Crude oil is down more than 20% in the past month, while natural gas is up more than 40% over the same period.
The result is that some of the most stable names in the energy sector, master limited partnerships (MLPs), have lost 6% or more in the past month, wiping out the benefit of an attractive annual dividend yield.
However, one thing that remains constant over time is that the market rewards faster earnings growth in stocks, even with income-oriented names. Higher profits can lead to higher future dividends, which in turn helps investors build wealth, even as inflation is rising.… Read more