The Motley Fool Highlights Three High-Yield Pipeline Stocks as Alternatives to Tech Frenzy

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โดย The Motley Fool·Read original
Summary · why it matters

The Motley Fool suggests that investors nervous about the tech stock frenzy consider three steady, high-yield master limited partnership pipeline stocks: Energy Transfer, Enterprise Products Partners, and Western Midstream. Energy Transfer offers a 7.2% yield and trades at a forward enterprise value-to-EBITDA multiple of 8.3, with growth projects like the Hugh Brinson and Desert Southwest Pipelines expected to generate high-teens returns. Enterprise Products Partners has increased its distribution for 27 straight years, yields 6%, and trades at a forward EV/EBITDA multiple of 10.5, while maintaining low leverage of 3.2x and a strong balance sheet. Western Midstream yields 8.7%, trades at a forward EV/EBITDA multiple under 9, and is expanding its natural gas and crude gathering footprint in the Delaware Basin through the Brazos Delaware acquisition, with leverage of only 3x.

Impact on stocks 5

Energy · 3 stocks
Energy Transfer Partners L.P
ETP
▲ PositiveCapitalrelevance

Highlighted as a high-yield MLP with growth projects expected to generate high-teens returns and attractive valuation.

Energy Transition & Power Demand · 1 stocks
Energy Transfer LP
ET
▲ PositiveCapitalrelevance

Highlighted as a high-yield MLP with growth projects expected to generate high-teens returns and attractive valuation.

Artificial Intelligence · 1 stocks