5 Safe Oil Yields Up to 8.5% (With Stocks That May Spike, Too)

Our Archive

Search completed

The Contrary Investing Report > NYSE:EPD

Energy stocks are en fuego again after a drone strike on a Saudi oil facility. We’re going to (as usual) skip the geopolitical talk and discuss oil dividends that will benefit from this disruption.

While “buy and hope” investors ponder basic ways to play the spike, you and I know that about half of energy returns come from payouts. Check out the orange line below, the total return of a popular energy index with dividends. It’s nearly double what the stock prices themselves returned:

The Real Key to Oil Riches? Dividends.

No dividend is guaranteed forever. But broadly speaking, income has been a far more reliable source of energy-sector returns than price performance, making up nearly half of energy’s total returns since late 1998.… Read more

Read More

“Hey Brett… you joined two partnerships last year?”

What? I didn’t. Or I thought I didn’t. In reality, I did–by buying shares in not one but two master limited partnerships (MLPs).

One of them was Enterprise Products Partners (EPD) and while I can’t recall the other, I can vividly the annoyed look on my accountant’s face like it was yesterday.

Master limited partnerships (MLPs) are required to issue you a K-1 package at the end of the tax year. These are generally headaches for the person who does your taxes (whether it’s you, or a professional).

That year my accountant calmly but sternly asked me to stop buying MLPs in my personal portfolio.… Read more

Read More

You can double your money in perfectly safe, well-known dividend stocks. But only if you know the secret! Novice income investors gravitate toward higher current yields, but often that can result in hitching your sleigh to stagnant stocks with equally stagnant dividends.

For monster total returns, we want to pay attention to dividend increases. Because these hikes don’t just bump up the yield on your initial investment – they also trigger stock-price increases, too. If a stock is already paying out 3% but then juices its payout by 10%, investors will see that new 3.3% yield and buy more shares. That buying will drive the stock’s price up, and the yield back down, eventually toward 3%.… Read more

Read More

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

Read More

Do you have a reliable way to generate monthly cash flow from the dividend stocks you own today? If not, why not?

Many “first-level” investors hope that their stocks will go higher so that they can sell them for cash flow. But, if you follow rich people, you’ll notice that they never actually sell any assets – they instead use them to generate more and more cash flow.

We can – and should – do the same. We can “tap” dividend stocks for regular cash flow. We can even turn the shares we own today into monthly dividend payments that provide us all the income we ever need for the rest of our lives (and we can hang onto the shares and enjoy price upside, too!)

Some financial advisers (many of whom haven’t even retired successfully themselves!) pitch a “4% withdrawal rate” where you “safely” withdraw roughly 4% each year that you use as spending money.…
Read more

Read More

Most people are chasing big dividend payers right now in this “3% world” we live in. Meanwhile, a small group of “hidden yield” stocks are quietly handing smart investors growing income streams PLUS annual returns of 12%, 17.3%, or more.

Let’s talk about how to find these stocks, and bank 12% returns or better every single year, by following a simple two-step formula.

See, everyone wants dividend stocks with good current yields. It’s easy to scan a newspaper or financial website and pick out the stocks that are paying 3%, 4%, 8% or whatever number you might consider “good.”

Yet that’s NOT the right way to pick dividend stocks.…
Read more

Read More

Most people are chasing big dividend payers right now in this “3% world” we live in. Meanwhile, a small group of “hidden yield” stocks are quietly handing smart investors growing income streams PLUS annual returns of 12%, 17.3%, or more.

Let’s talk about how to find these stocks, and bank 12% returns or better every single year, by following a simple two-step formula.

See, everyone wants dividend stocks with good current yields. It’s easy to scan a newspaper or financial website and pick out the stocks that are paying 3%, 4%, 8% or whatever number you might consider “good.”

Yet that’s NOT the right way to pick dividend stocks.…
Read more

Read More

December might be the traditional season of generosity for most, but not for energy master limited partnerships (MLPs). This high-income area of the market tends to wait until January rolls around to get into the giving spirit, with many of the industry’s names doling out distribution hikes a couple weeks after the New Year.

Investors looking to jump into MLPs, then, may want to get into the seven stocks I’m about to highlight – all of which yield between 5% and 8% – before they up the ante on their regular payouts.

A host of MLPs tend to wait until after the champagne has been uncorked and the bowl games have been played to announce distribution hikes.…
Read more

Read More

Categories