Got $10,000 to Invest This September? These Energy Stocks Could Turn It Into Over $600 in Annual Income.
September historically underperforms the S&P 500 due to seasonal portfolio adjustments, negative media coverage, and the Federal Reserve's interest rate decisions. However, long-term investors can capitalize on buying income-generating energy stocks that perform well during market downturns. Two such stocks to consider are Energy Transfer (NYSE: ET) and MPLX (NYSE: MPLX), both midstream pipeline companies that charge tolls for using their infrastructure.
This model provides stable cash flow, making these stocks less susceptible to volatile commodity prices. Energy Transfer manages over 140,000 miles of pipeline across 44 states, while MPLX operates more than 10,000 miles of crude oil and light product pipelines in 14 states. Both have high forward yields of 6.4% and 7.3%, respectively, supported by their distributable cash flow.
Energy Transfer plans to increase its distributions annually by 3%-5%, while MPLX aims for a more aggressive 12.5% increase through 2027. These stocks are currently trading at lower valuations (18x and 12x earnings per unit, respectively) compared to other energy stocks. Despite geopolitical tensions and market volatility, Energy Transfer and MPLX remain reliable income plays, offering steady returns in an otherwise uncertain market.
Written by urgent.news from Yahoo Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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