The best stock of high -income energy currently invests $ 10,000

  • Price prices are very unstable, which is the main problem of conservative dividend investors.

  • Stocks like Chevron can help you deal with that volatility, taking into account its very diverse business model.

  • Another option is to focus on the most boring sector segment: energy transfer.

  • 10 shares we like more than Enterprise Products Partners ›

Oil, natural gas and many of them have turned into products are goods. The cost of these goods can rise dramatically and quickly, making the overall energy sector very unstable. One reasonable way to deal with that volatility is to buy a high -yield diversified giant like Chevron (NYSE: CVX); However, there is another opportunity to land, which offers even more revenue.

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Chevron is a large and world -wide integrated energy company. This means that it has energy generation (above), energy transfer (mid -flow) and chemicals and refining companies (downstream). This creates an important diversification and essentially provides investors in the entire energy industry in one investment.

Most importantly, each industry segment works slightly differently. For example, when oil prices are low, the actions above will work badly. However, downstream oil uses oil as an input, so low oil prices can increase downstream. The end result is that the action as an integrated energy giant helps to relieve peaks and valleys characteristic of the activity in the energy sector.

Given a series of 38 -year -old Chevron annual dividends, it is a strong choice for dividend amateurs in the energy sector. Add about 4.4% of the dividend yields, and it offers a relatively noble income flow. Link S&P 500 The index today results in only 1.2%and the average energy stock is 3.2%.

Chevron is indeed a good choice if you want to directly affect oil and natural gas. However, it is worth noting that the very volatile essence of the Chevron makes a dividend payment ratio with a less useful tool for evaluating dividend sustainability. The true story is the commitment of the Directors’ Board for dividends, which can change at any time.

That is why it is now worth discussing one segment of the energy industry that has not yet been mentioned in detail. This industrial segment usually operates with a toll model, so the cost of oil and natural gas is not as important as the need for energy. That’s why the best investments in the energy you can buy today could be Enterprise Products Partners (NYSE: EPD);

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