Latest news with #HighYield
Yahoo
2 days ago
- Business
- Yahoo
Forget Energy Transfer? The Smartest High-Yield Energy Stocks to Buy With $100 Right Now.
Key Points Energy Transfer pays a 7.5%-yielding distribution backed by a rock-solid financial profile. Western Midstream and Plains All American Pipeline have even higher current yields. The fellow MLPs could also increase their payouts at faster rates in the future. 10 stocks we like better than Energy Transfer › Energy Transfer (NYSE: ET) stands out in the energy sector for its attractive distribution. The energy midstream giant currently yields over 7.5%. However, it might not be the optimal option for those seeking to turn $100 into a high-octane income stream. Fellow master limited partnerships (MLPs) Plains All American Pipeline (NASDAQ: PAA) and Western Midstream Partners (NYSE: WES) currently offer higher-yielding payouts (8.5% for PAA and 9.5% for WES) backed by similarly strong financial profiles. That makes them smarter ways to maximize your passive income production these days. A well-oiled, income-producing machine Plains All American Pipeline owns and operates midstream energy infrastructure focused on crude oil and natural gas liquids (NGLs). About 8 million barrels of oil and NGLs flow through its system of pipelines, storage terminals, and other assets each day. The MLP primarily collects a fixed fee as those volumes pass through its network (85% of its earnings after closing the pending sale of its Canadian NGL business). The company has a stable cash flow profile similar to Energy Transfer, with only 15% of its future earnings having commodity price exposure compared to about 10% for its larger rival. The oil pipeline company expects to produce enough cash to cover its high-yielding distribution by 1.75 times this year. That's a comfortable level. (It's currently above its 1.6x target.) It's not too far from Energy Transfer's current coverage level (nearly 1.9x through the first half of this year). Plains All American Pipeline also backs its payout with a strong balance sheet. The oil pipeline company exited the second quarter with a 3.3x leverage ratio, putting it toward the low end of its 3.25x to 3.75x target range. That's well below Energy Transfer's level, which is currently near the low end of its 4.0x to 4.5x target range. Energy Transfer's larger, more diversified business model allows it to have a higher leverage ratio. Plains' already strong financial profile will grow only stronger once it closes its Canadian NGL sale. The company's strong financial profile allows it to invest in expanding its operations. Plains invests in organic expansion projects and makes small bolt-on acquisitions. (It bought another 20% interest in the BridgeTex Pipeline Company in the second quarter.) These growth investments should enable the company to continue increasing its distribution. Plains All American expects to increase its payout by around 10% annually until it reaches its targeted 1.6x coverage level, and then it aims to grow its payment at the same rate as its cash flow. That's likely a faster pace than Energy Transfer, which targets annual distribution growth of 3% to 5%. Steady baseline income growth with upside potential Western Midstream primarily focuses on providing natural gas, crude oil, and produced water services to oil and gas companies in the Delaware, DJ, and Powder River Basins. Fee-based contracts supply much of its earnings. That enables the MLP to produce predictable cash flow to support its high-yielding dividend. The energy midstream company expects to generate $1.3 billion to $1.5 billion of free cash flow this year. That's enough money to cover its lucrative distribution and the capital expenses to maintain and grow its operations, with room to spare. The MLP also has a sub-3.0x leverage ratio, giving it additional financial flexibility. Western Midstream plans to use some of its excess financial capacity to buy Aris Water Solutions in a $1.5 billion cash and stock deal. That deal will enhance its operations and boost its free cash flow next year. Meanwhile, it has visible growth coming down the pipeline in 2027 from its recently approved North Loving II gas processing plant and Pathfinder Pipeline projects. The company's growth investments should support continued distribution increases. Western Midstream aims to deliver low- to mid-single-digit annual growth supported by the steady expansion of its core business. Additionally, it sees the potential for incremental distribution growth fueled by major expansion projects and acquisitions. Better income options Energy Transfer is an excellent MLP to buy for passive income. However, Plains All American and Western Midstream currently offer higher-yielding payouts. Further, those MLPs (which, like Energy Transfer, send a Schedule K-1 Federal Tax Form each year) could deliver higher income growth rates in the future. That makes them smarter investments for those seeking to maximize the income produced from every $100 they invest. Should you buy stock in Energy Transfer right now? Before you buy stock in Energy Transfer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Energy Transfer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Matt DiLallo has positions in Energy Transfer. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Forget Energy Transfer? The Smartest High-Yield Energy Stocks to Buy With $100 Right Now. was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
21-07-2025
- Business
- Bloomberg
Europe-Based High Yield Funds See Most Weekly Inflows This Year
Junk bond funds based in Europe saw their biggest weekly inflow of the year last week, as investors continue to pile into an asset class that offers relatively generous yields, stability and diversification away from the US dollar. Over $1,233 million poured into European domiciled high yield funds with a local focus in the week ending July 16, according to BofA Global Research analysts, citing EPFR Global data. The previous week saw over $1 billion of inflows.
Bloomberg
11-07-2025
- Business
- Bloomberg
Investor Survey, Trade War and Dollar, 2H Outlook: Credit Crunch
Credit and high yield had a good 1H, shaking off tariffs and a spread rout with a strong recovery. Will 2H be as strong, and why? Thomas Samson, high yield portfolio manager at Muzinich & Co., joins Mahesh Bhimalingam, Bloomberg Intelligence's global head of credit strategy, on this episode of the Credit Crunch podcast, to discuss the results of BI's 3Q High Yield Investor Survey, along with the market outlook. They also talk about dollar flows into euro-denominated assets, the trade war's effect on market dispersions, and how private credit and loan markets are influencing high yield and default rates in 2H. They cover investor positioning, sentiment, key return drivers, supply forecasts and relative value across asset classes (high grade vs. junk), geography (Europe vs. US), ratings and sectors.
Yahoo
05-07-2025
- Business
- Yahoo
Best CD rates today, July 4, 2025 (up to 5.5% APY return)
See which banks are currently paying the highest CD rates. If you're looking for a secure place to store your savings, a certificate of deposit (CD) may be a great choice. These accounts often provide higher interest rates than traditional checking and savings accounts. However, CD rates can vary widely. Learn more about CD rates today and where to find high-yield CDs with the best rates available. Today's CD rates vary quite a bit. In general, however, CD rates are beginning to decline due to the Fed's decision to cut its benchmark rate three times in the later part of 2024. Even so, some banks are still offering competitive CD rates. For those that are, top rates reach about 4% APY. This is especially true for shorter terms of one year or less. As of July 4, 2025, the highest CD rate is 5.5% APY, offered by Gainbridge® on its 5-year CD. There is a $1000 minimum opening deposit required. Here is a look at some of the best CD rates available today from our verified partners: This embedded content is not available in your region. Compare these rates to the national average as of June 2025 (the most recent data available from the FDIC): Compared with today's top CD rates, national averages are much lower. This highlights the importance of shopping around for the best CD rates before opening an account. Online banks and neobanks are financial institutions that operate solely via the web. That means they have lower overhead costs than traditional brick and mortar banks. As a result, they're able to pass those savings on to their customers in the form of higher interest rates on deposit accounts (including CDs) and lower fees. If you're looking for the best CD rates available today, an online bank is a great place to start. However, online banks aren't the only financial institutions offering competitive CD rates. It's also worth checking with credit unions. As not-for-profit financial cooperatives, credit unions return their profits to customers, who are also member-owners. Although many credit unions have strict membership requirements that are limited to those who belong to certain associations or work or live in certain areas, there are also several credit unions that just about anyone can join. Whether or not you should put your money in a CD depends on your savings goals. CDs are considered a safe and stable savings vehicle — they don't lose money (in most cases), are backed by federal insurance, and allow you to lock in today's best rates. However, there are some drawbacks to consider. First, you must keep your money on deposit for the full term, otherwise you'll be subject to an early withdrawal penalty. If you want flexible access to your funds, a high-yield savings account or money market account might be a better choice. Additionally, although today's CD rates are high by historical standards, they don't match the returns you could achieve by investing your money in the market. If you're saving for a long-term goal such as retirement, a CD won't provide the growth you need to reach your savings goal within a reasonable time frame. Read more: Short- or long-term CD: Which is best for you? This embedded content is not available in your region.
Yahoo
24-06-2025
- Business
- Yahoo
This Independence Day - Gimme Credit Marks 30+ Years of Independent Corporate Bond Research with Proven Track Record Against Market Consensus
NEW YORK, June 24, 2025 /PRNewswire/ -- Gimme Credit today highlighted its three-decade commitment to delivering unbiased, unhedged, and uninfluenced corporate bond research that empowers investors and traders to make smarter, more confident decisions in an industry often dominated by conflicted analysis. While competitors often carry the burden of issuer affiliations or rely heavily on static credit ratings, Gimme Credit stands apart. Founded in 1994, the firm has remained fiercely independent: not a credit rating agency, not influenced by issuers, and not afraid to challenge the consensus. Expert analysts provide clear, actionable buy/outperform and sell/underperform calls across the Investment Grade, High Yield, and Emerging Markets space. "Our only allegiance is to our clients and the truth in the numbers," said Arthur Rosenzweig, CEO at Gimme Credit. "We were founded on the belief that independence is not just a business model—it's a mission. And for over three decades, that mission has never wavered." Today, that mission is more vital than ever. As investors grapple with market volatility, regulatory scrutiny, and growing concerns about the objectivity of traditional research, demand is rising for conflict-free, timely analysis. The rise of ESG-linked debt, increased policy risk, and tightening credit conditions all amplify the need for independent voices that can cut through noise and identify credit risks and opportunities in real time. Unlike traditional rating agencies that often lag market reality due to issuer relationships, Gimme Credit's freedom from conflicts of interest enables the delivery of objective insights and real-time intelligence that institutional investors, traders, and financial advisors rely on. With concise, no-nonsense research notes from seasoned senior analysts, clients navigate the complex fixed-income markets with clarity and conviction. Gimme Credit provides independent corporate bond research and data to aid investors and traders with critical and timely insights into an organization's investment potential. Since 1994, customers have relied on our decisive buy/sell recommendations to provide in-depth guidance when determining which fixed-income securities offer the most opportunity. Gimme Credit's clients include brokerage firms, corporations, financial advisors, investment managers and traders. The company has built its reputation on providing unhedged corporate bond investment recommendations by experienced, independent senior analysts. Company research and news are regularly featured in such esteemed Media as Bloomberg, The Wall Street Journal, Barron's, FT and more. Request A Free Gimme Credit Trial View original content to download multimedia: SOURCE Gimme Credit Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
