One has to have been asleep for the past year to have missed the huge rise in oil and gasoline prices that has become one of the biggest burdens that millions of Americans face each day. The average price for a gallon of gas in the United States now is $4.22. For diesel, which powers almost all the trucks that transport goods across the nation, the price is a stunning $5.43. Those big increases are one reason that inflation could approach double-digit levels this summer, before leveling off later this year or early in 2023.
Investors who hopped on the energy train a year ago have reaped the benefits of the price surges, and despite belated efforts by the White House such as releasing oil from the Strategic Petroleum Reserve, many across Wall Street feel the high prices may be here for some time.
Truist Financial recently resumed coverage on some of the top energy master limited partnerships (MLPs), and we screened the list looking for those stocks with the highest dividend yields. These five still look very attractive, despite the big run higher over the past year.
While the Truist team has a Buy rating on all five of these top stocks, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Enterprise Products Partners
This is the largest publicly traded energy partnership and a leading North American provider of midstream energy services to producers and consumers. Enterprise Products Partners L.P. (NYSE: EPD) provides a wide variety of midstream energy services, including gathering, processing, transportation and storage of natural gas, natural gas liquids (NGL) fractionation, import and export terminaling, and offshore production platform services.
One reason many analysts may have a liking for the stock might be its distribution coverage ratio. This ratio is well above 1 times, making it relatively less risky among the master limited partnerships.
Enterprise Products Partners stock investors receive a 7.12% distribution. Truist’s price target is $27, while the consensus target is up at $30.57. Shares closed on Thursday at $26.61.
Kinder Morgan
This is another of the top energy stocks, and it remains a favorite across Wall Street. Kinder Morgan Inc. (NYSE: KMI) operates as an energy infrastructure company in North America. The company operates through the following segments.
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