5 Buy-Ranked Energy Stocks For Dividend Investors In 2020

To guide investors to the right picks, we highlight five stocks that carry a Zacks Rank of #1 (Strong Buy) or 2 (Buy). The Zacks Rank is a reliable tool that helps you trade with confidence regardless of your trading style and risk tolerance. To learn more about how you can use this proven system for market-beating gains, visit Zacks Rank Education.

Finally, the stocks, which we shall cherry-pick, offer current dividend yield of more than 5%.

Most of them are energy infrastructure master limited partnerships (or MLPs). The assets that these partnerships own typically – oil and natural gas pipelines and storage facilities.

MLPs represent an attractive investment option for income-focused investors in the current environment. In addition to high yields, MLPs are structured as pass-through entities.

This means that they typically distribute nearly all of their cash flows back to unitholders. The MLPs are not required to pay a corporate income tax as the tax liability of the entity is passed on to its owners (or unitholders) in the form of a cash dividend (distribution). This allows the MLPs to offer very attractive yields to the investors.

5 Energy Stocks to Invest In

CNX Midstream Partners LP (CNXM - Free Report) is a natural gas midstream company that owns and operates gathering and other assets in the Marcellus Shale and Utica Shale in Pennsylvania and West Virginia. CNX Midstream Partners carries a Zacks Rank #1 and boasts of a distribution yield of 9.7%.

Crestwood Equity Partners LP (CEQP - Free Report) is a natural-gas focused midstream player with operations in the Bakken and Barnett shales, the Permian basin, and the Marcellus. With a Zacks Rank of 1, the partnership gives a chance to lock in 7.6% yield.  

Rattler Midstream LP (RTLR - Free Report) is oil and gas gathering and takeaway master limited partnership, whose operations are spread over the Permian’s Midland and Delaware basins. The #2 Ranked stock midstream operator’s estimated distribution yield is around 8%.  

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