While many across Wall Street have debated whether we are in a recession after two consecutive quarters of negative gross domestic product, one recession indicator cannot be ignored. The inversion of the two-year and 10-year Treasury notes has been persistent. Now, an even bigger harbinger is coming into play, as yields across the Treasury curve have tumbled over the past six weeks.
The 90-day Treasury note is trading even with the current federal funds rate and is almost inverted to the 10-year note, as the yield on the benchmark security has dropped almost 100-basis-points since mid-June. This is a sign the bond market feels the economy is in serious trouble, and so do those who need consistent and reliable income.
With the price of oil retreating almost 20% from highs printed earlier this year, but with demand still huge, energy master limited partnership (MLP) stocks have backed up big-time and are offering some of the best entry points for income investors this year.
We screened our 24/7 Wall St. MLP research universe and found seven Buy-rated stocks paying huge distributions that look like great buys now. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
With shares trading near $10 apiece, this very well-run company offers a huge total return package. Antero Midstream Corp. (NYSE: AM) owns, operates and develops midstream energy infrastructure. It operates through two segments.
The Gathering and Processing segment includes a network of gathering pipelines and compressor stations that collects and processes production from Antero Resources’ wells in West Virginia and Ohio.
The Water Handling segment delivers fresh water and offers other fluid handling services, such as wastewater transportation, disposal and treatment, as well as high-rate transfer services.
Antero Midstream stock investors receive an 8.96% distribution. Wells Fargo recently lifted its $12 target price to $13. The consensus target is just $10.50. The shares closed on Tuesday at $10.05.
This top MLP is a very safe way for investors looking for energy exposure and income. Energy Transfer L.P. (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all the major domestic production basins.
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