Plains All American Pipeline
This stock has been locked in a tight trading range and looks ready to break out. Plains All American Pipeline L.P. (NYSE: PAA) engages in the pipeline transportation, terminaling, storage and gathering of crude oil and NGLs in the United States and Canada. The company operates through two segments.
Its Crude Oil segment offers gathering and transporting of crude oil through pipelines, gathering systems, trucks and at times on barges or railcars. This segment provides terminaling, storage and other facilities-related services, as well as merchant activities.
The Natural Gas Liquids segment provides gathering, fractionation, storage, transportation and terminaling activities. This segment is also involved in ethane, propane, normal butane, iso-butane and natural gasoline, as well as crude oil refining processes.
The distribution yield is 7.05%. The $18 target price at Raymond James accompanies a Strong Buy rating. The consensus target is $16.91, and Plains All American Pipeline stock ended Tuesday trading at $15.21.
Sunoco
This well-known company could be the best buy for investors who are more conservative. Sunoco L.P. (NYSE: SUN) distributes and retails motor fuels in the United States. The company operates in two segments.
The Fuel Distribution and Marketing segment purchases motor fuel from independent refiners and oil companies and supplies it to independently operated dealer stations, distributors and other consumers of motor fuel, and partnership operated stations, as well as to commission agent locations.
The All Other segment operates retail stores that offer motor fuel, merchandise, foodservice and other services that include credit card processing, car washes, lottery, automated teller machines, money orders, prepaid phone cards and wireless services. It also leases and subleases real estate properties and operates terminal facilities on the Hawaiian Islands. As of December 31, 2020, the company operated 78 retail stores in Hawaii and New Jersey.
Sunoco stock investors receive a 7.53% distribution. The Raymond James target price is $53. The consensus target is $50.86. The final trade on Tuesday was reported at $45.42.
These seven major players in the energy infrastructure arena offer safe and reliable distributions. Investors looking for solid total return potential can do well owning these MLP leaders.
It is important to note that MLP distributions may contain return of principal. Those looking to avoid the pesky K-1s can always purchase shares in the ALPS Alerian MLP ETF (NYSE: AMLP). Investors receive a 1099 instead of a K-1.
Originally published at 24/7 Wall St.
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