S&P 500   3,852.36
DOW   32,920.46
QQQ   306.18
Route to Super Bowl dangerous for Mexico's avocado haulers
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
Europe bans Russian diesel, other oil products over Ukraine
Biden's State of the Union to tout policy wins on economy
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
How will EU ban and West's price cap on Russian diesel work?
Evacuations urged in Ohio town as train wreck smolders
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
It wasn’t me: Ex-UK PM Truss blames 'system' for her failure
'Knock at the Cabin' knocks off 'Avatar' at the box office
S&P 500   3,852.36
DOW   32,920.46
QQQ   306.18
Route to Super Bowl dangerous for Mexico's avocado haulers
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
Europe bans Russian diesel, other oil products over Ukraine
Biden's State of the Union to tout policy wins on economy
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
How will EU ban and West's price cap on Russian diesel work?
Evacuations urged in Ohio town as train wreck smolders
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
It wasn’t me: Ex-UK PM Truss blames 'system' for her failure
'Knock at the Cabin' knocks off 'Avatar' at the box office
S&P 500   3,852.36
DOW   32,920.46
QQQ   306.18
Route to Super Bowl dangerous for Mexico's avocado haulers
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
Europe bans Russian diesel, other oil products over Ukraine
Biden's State of the Union to tout policy wins on economy
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
How will EU ban and West's price cap on Russian diesel work?
Evacuations urged in Ohio town as train wreck smolders
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
It wasn’t me: Ex-UK PM Truss blames 'system' for her failure
'Knock at the Cabin' knocks off 'Avatar' at the box office
S&P 500   3,852.36
DOW   32,920.46
QQQ   306.18
Route to Super Bowl dangerous for Mexico's avocado haulers
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
Europe bans Russian diesel, other oil products over Ukraine
Biden's State of the Union to tout policy wins on economy
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
How will EU ban and West's price cap on Russian diesel work?
Evacuations urged in Ohio town as train wreck smolders
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
It wasn’t me: Ex-UK PM Truss blames 'system' for her failure
'Knock at the Cabin' knocks off 'Avatar' at the box office

3 Natural Gas Stocks That Offer Great Dividend Yields

Key Points

  • Natural gas stocks remain a solid option for investors looking to benefit from energy stocks. 
  • Midstream companies are among the most stable investments in the sector.  
  • This article highlights three of the top midstream companies for investors to consider. 
  • 5 stocks we like better than Enterprise Products Partners
3 Natural Gas Stocks That Offer Great Dividend Yields

As many Americans fire up their furnaces for the winter months, they’ll also be eyeing their home heating bills. They’re going to be paying more, and several companies will be the beneficiary of those higher prices. Among them will be several midstream oil and gas companies that are responsible for keeping natural gas flowing across the country.  

Midstream companies are among the most stable investments in the oil and gas industry. Many operate as master limited partnerships (MLPs). These companies aren’t known for generating significant capital growth. In fact, they’re known as the “utilities” of the natural gas sector.  

Investing in MLPs isn’t for every investor as they do present some tax implications. But for investors who have wealth preservation and income as their most important goals, these stocks make up for that with generous dividends.  

This article will look at three of the top companies that investors should be looking at right now. Each offers a healthy dividend, but also may be ready to deliver some share price appreciation. But first, let’s answer this question.  

Is It Too Late to Invest in Natural Gas Stocks?  

It wouldn’t seem to be the case. A poll conducted by Pew Research Center in March 2022 found that over two-thirds of Americans support the use of a diverse energy mix that includes natural gas.  

Many of these respondents still want the United States to be carbon neutral by 2050. But most of the respondents were concerned about “unexpected problems” that could result from reducing fossil fuel production.  


One of those unexpected problems is on full display since the Russian invasion of Ukraine. Europe relies on Russia for much of its natural gas needs. To meet that need this winter, many European Union nations are looking for natural gas from elsewhere. And the United States is a prime candidate.  

Enterprise Products Partners  

With a $54 billion market cap, Enterprise Products Partners (NYSE: EPD) is one of the largest midstream companies. In its most recent quarter, the company’s natural gas pipelines transported a record $17.5 trillion BTUs per day which speaks to the ongoing demand for natural gas.  

Many analysts note that over 30% of the company’s shares (or “units” since it’s an MLP) are owned by company insiders. The thesis is that this level of ownership means that management has a personal stake in making sure the business is run in a prudent manner. And that is reflected in the company’s balance sheet which keeps a significant amount of cash on hand.  

Some of that cash is used to support the dividend which currently has a yield of over 7.6%. Plus, the company just increased its dividend for its 25th consecutive year making it part of the dividend aristocrat club. 

As of this writing, EPD stock has just crossed above both its 50- and 200-day simple moving averages after a period of consolidation. This may create an opportunity for investors to capture a little share price growth to end the year.  

Enbridge 

Enbridge (NYSE: ENB) has a market cap of over $81 billion. I could list many of the same positives for Enbridge as I did for Enterprise Products Partners. This is a very fundamentally sound company with a secure dividend that currently yields over 6%.  

One differentiating factor for Enbridge is its ability to capitalize on the growing liquefied natural gas (LNG) market. As mentioned above, Europe is looking to the West for natural gas which will have to be transported as LNG. Enbridge has several projects that are near liquefication terminals. The company expects this will allow it to garner a fair share of this business, which adds growth potential to the solid dividend offered by Enbridge. 

Magellan Midstream Partners 

The third midstream company to watch is Magellan Midstream Partners (NYSE: MMP). It checks in with the smallest market cap of the three companies. At just over $10 billion, it could be considered a mid-cap company.  

MMP stock is up over 10% for the year and is trading above its 50- and 200-day moving averages at the time of this writing. But investors are really buying a stock like this for secure income. The company does have a dividend yield of just over 8%. And the company has increased that dividend for 19 consecutive years.  

Should you invest $1,000 in Enterprise Products Partners right now?

Before you consider Enterprise Products Partners, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Enterprise Products Partners wasn't on the list.

While Enterprise Products Partners currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Enterprise Products Partners (EPD)
2.6987 of 5 stars
$25.81flat7.59%10.32Moderate Buy$30.60
Enbridge (ENB)
2.3309 of 5 stars
$40.570.0%6.38%19.23Hold$58.90
Magellan Midstream Partners (MMP)
2.2021 of 5 stars
$54.70+0.3%7.66%11.05Hold$56.00
Compare These Stocks  Add These Stocks to My Watchlist 

Chris Markoch

About Chris Markoch

Contributing Author: Retirement, Individual Investing

Chris Markoch is a freelance financial copywriter with over five years of experience covering various aspects of the financial markets. You may find his writing a little different than other stock articles you’ve read. And that’s OK with him. Chris doesn’t have a traditional finance background. What he does bring to the table is a strong business and marketing background having worked for agencies that serviced Fortune 500 companies. With that in mind, he isn’t overly impressed with what companies say, and more focused on what they do. And because buyer behavior dictates so much of what happens with a stock, Chris always keeps the end consumer close in mind. Chris has been writing for MarketBeat since 2018.

Contact Chris Markoch via email at CTMarkoch@msn.com.

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