Many folks look to trusted stock-picking websites for their research about stocks and the stock market. Motley Fool is one such website. Recently, an article written by Matthew DiLallo and appearing in Motley Fool outlined three stocks that investors might like to consider. The names are Kinder Morgan (KMI), Enbridge Energy (EEP) and Weyerhauser (WY). Each of these is a New York Stock Exchange-listed issue. They have great dividend yields and may now be on the bargain table.
Kinder Morgan (KMI)
Kinder Morgan is a natural gas pipeline company. It was a darling of the market several years ago but has since been knocked down in price. Pipeline companies are good businesses, operating in some sense like a toll roads. Gas-producing companies pay KMI to transmit their gas from its source area to the customers. People are still using lots of natural gas and the “tolls” are continuously collected by Kinder Morgan. This potentially undervalued issue currently yields 3.07% and is expected to raise its 60% in the near future according to Mr. DiLallo.
Enbridge Energy Partners (EEP)
Enbridge Energy Partners is an oil pipeline company, which has also been beaten down in price and now yields more than 10%. Similar to Kinder Morgan, the continuous transmission of oil through the Enbridge pipeline infrastructure generates a steady income. According to Mr. DiLallo, EEP is a safe but because it has one of the lowest risk profiles in the oil pipeline sector.
This company is a green investment, green as in forests. It generates reliable profits by selling lumber, other wood products, and non-core acreage position. This steady forest-product business fuels a 3.6% dividend yield. It is a dividend-growth machine, having raised its dividend payout six times since 2011.
High-quality dividend stocks such as these three can form an important part of many portfolios but are especially useful as long-term investments where the continuous re-investment of the generous dividends allow for an ever increasing dividend stream. See if these issues fit into your plans.