Three Energy Stocks Poised To Double

Now, after the large value swings outlined above, the AMZI on a price basis is down 40% year to date. Calculating total return, including distributions, the are down 35% for the year.

For value-focused investors, at this point, energy midstream looks very attractive. For the most part, companies in the sector have sustained distribution/dividend payments. Cash flow coverage of the distributions remains stable, and for many companies, the coverage is well above historical averages. Investors can count on continued dividend payments.

Despite the dividend stability, the AMZI yields 12%—which is impressive! As we go through the next few quarters, investors may start to realize they can get double-digit yields from stocks with well-covered dividends and growth potential. I expect a 100% total return out of the energy midstream sector over the next year.

Here are three midstream ETFs to consider:

The Alerian Energy Infrastructure ETF (ENFRtracks the Alerian Midstream Energy Select Index.

The top three holdings are Enbridge, Inc. (ENB), Enterprise Product Partners LP (EPD), and TC Energy Corp. (TRP).

The fund shares currently yield 7.1%.

The Global X MLP ETF (MLPA) invests in some of the largest, most liquid midstream MLPs.

The top holdings are Enterprise Product Partners LP (EPD), Energy Transfer Partners LP (ET), and Magellan Midstream Partners LP (MMP).

MLPA has $700 million in assets and currently yields 14%.

The JPMorgan Alerian MLP Index ETN (AMJ) tracks the Alerian MLP Index, which covers a broader group of publicly traded partnerships than the AMZI does.

As an ETN, AMJ does not own midstream stocks.

The shares are priced to track the index and are unsecured obligations of JP Morgan Chase.

The current yield is 12.3%.

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Old Time Investor 1 year ago Member's comment

Great picks. I think these stocks are poised to go up dramatically.