Account Information

  • My Account

    Manage all your subscriptions, update your address, email preferences and change your password.

  • Help Center

    Get answers to common service questions, ask the analyst or contact our customer service department.

  • My Stock Talk Profile

    Update your stock talk name and/or picture.


$1,230 in Instant Income?

$1,230 in Instant Income?Our top income expert recently pulled the wraps off his breakthrough moneymaking technique. And he proved beyond a shadow of a doubt how you can use it to generate instant cash payouts of up to $1,230 (or more). Over and over again. But then he took things a big step further and guaranteed you can make $1 million by following his program. And the second he did, our phones went nuts! Space is limited — get the details here.



Income Plays for the Energy Rally

By Igor Greenwald on September 27, 2017

Hope springs eternal in the oil patch but this time it might not be misplaced, as strong global demand begins to visibly drain the crude glut.

Some energy stocks are already responding, while others remain steeply marked down. Many continue to generate attractive dividend yields fully covered by cash flow that will swell as energy prices recover.

U.S. oil prices have lagged the global gains, held back by the disruptions from Hurricane Harvey and expectations of big production growth next year. But global inventories are now plainly getting drawn down, and as a result the global benchmark Brent is nearing $60 a barrel.

The wider spread between Brent and U.S. prices has been great for U.S. refiners, especially those with easy access to overseas exports markets. The stock of industry leader Valero (NYSE: VLO) has hit record highs in recent days but continues to yield 3.7%. Valero spent $1.3 billion on dividends and share buybacks in the first half of 2017, equivalent to an annualized return yield of around 8%. Those outlays consumed 80% of the refiner’s free cash flow.

Refining margins have improved in the third quarter but have historically been volatile. Higher U.S. crude prices could cut into Valero’s windfall, for example.

The midstream pipeline sector involved in gathering, shipping and processing crude oil and natural gas as well as fuel has more to gain from higher oil prices, and less to lose from foreign competition. The pipeline operators remain steeply marked down and would benefit from higher U.S. energy output as well as increased consumption.

The Texas pipeline giant Enterprise Products Partners (NYSE: EPD) yields an annualized 6.4%. The distribution is as safe as any in energy, backed by a large and diverse base of midstream assets. Rival Energy Transfer Equity (NYSE: ETE) is riskier but has more upside given its claims on the cash flows of affiliates. Its yield is at 6.6% annualized.

Their returns have been outpaced of late by those of lower-yielding energy securities with faster growth rates. Dominion Energy Midstream Partners (NYSE: DM) yields a relatively modest 3.4%, but expects to increase distributions more than 20% annually for the next several years. The Virginia utility’s affiliate owns gas infrastructure assets including the East Coast’s only liquefied natural gas export terminal, which is due to come online by the year’s end under long-term supply contracts. Its share price is up 27% since mid-August.

EQT GP Holdings (NYSE: EQGP) yields 3% and also plans to boost its payouts more than 20% annually. It represents the general partnership interests of gas driller EQT (NYSE: EQT) in its midstream affiliate, and is up 11% over the last six weeks on speculation that those midstream interests will be sold eventually.

Investors interested in high current yield might consider Enbridge Energy Partners (NYSE: EEP), yielding a well covered 9% after jettisoning its gas assets and cutting the distribution earlier this year. The Series A preferred shares of Targa Resource Partners (NYSE: NGLS-A) yield 8.3% and those distributions have precedence over Targa’s common dividends.

You might also enjoy…


Boost Your Annual Income By As Much As $12,036

We’ve uncovered a unique income-boosting opportunity that allows you to collect up to $1,003 a month in extra government cash. 

This plan is available to everyone over the age of 18.

The amount you make isn’t dependent upon your marital status…

How much money you currently make…

Or even how much money you made in the past.

Best of all, because of the way Uncle Sam views the money that comes from this plan, your current—or future—Social Security benefits won’t be affected, either. 

There’s still time to get your name on the list for the next check run. 

I’ll show you how here.

Stock Talk — Post a comment Comment Guidelines

Our Stock Talk section is reserved for productive dialogue pertaining to the content and portfolio recommendations of this service. We reserve the right to remove any comments we feel do not benefit other readers. If you have a general investment comment not related to this article, please post to our Stock Talk page. If you have a personal question about your subscription or need technical help, please contact our customer service team. And if you have any success stories to share with our analysts, they’re always happy to hear them. Note that we may use your kind words in our promotional materials. Thank you.

You must be logged in to post to Stock Talk OR create an account.

Create a new Investing Daily account

  • - OR -

* Investing Daily will use any information you provide in a manner consistent with our Privacy Policy. Your email address is used for account verification and will remain private.