The article discusses various income investments in the energy sector, specifically highlighting Western Midstream Partners (NYSE: WES), which currently offers an 8.1% yield. It compares this yield with other companies, such as Energy Transfer (ET), Enterprise Products Partners (EPD), MPLX LP (MPLX), Enbridge (ENB), and ExxonMobil (XOM), noting that Exxon has the lowest yield at 2.5%.
Here’s a summary of yields and potential yearly income from a $1,000 investment in each company:
- Western Midstream Partners: 8.1% yield = $81/year
- MPLX LP: 7.5% yield = $75/year
- Energy Transfer: 6.5% yield = $65/year
- Enterprise Products Partners: 5.9% yield = $59/year
- Enbridge: 6.1% yield = $61/year
- ExxonMobil: 2.5% yield = $25/year
The article emphasizes the reliability of midstream companies in generating consistent income, as they charge fees for the use of infrastructure rather than relying solely on commodity prices. It also warns that higher yields typically imply higher risks and discusses tax implications related to investments in master limited partnerships (MLPs).
Lastly, it advises potential investors to consider alternatives, as Western Midstream Partners was not recommended among the “10 best stocks” identified by the Motley Fool analyst team, even though it is positioned for reliable dividend income.
