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DailyBubble News

Billionaire Bond King Bill Gross Says This 10% Ultra-High-Yield Dividend Stock Is “Best of the Bunch” For Pipeline Master Limited Partnerships

The energy sector has had a strong start this year, with master limited partnerships (MLPs) standing out as promising opportunities. Bill Gross, known as the “bond king,” recently praised Western Midstream Partners (WES) as the top choice among pipeline MLPs. With a dividend yield of 10%, Gross’s endorsement raises questions about whether investors should follow suit.

In 2024, the energy sector has performed on par with technology, with industrials, basic materials, and utilities showing significant growth. MLPs are a unique investment option within the energy sector, structured as limited partnerships that pass profits and losses to partners. This structure allows investors to offset capital gains taxes and enjoy generous distributions similar to dividends.

Western Midstream stands out for its long-term, fee-based contracts that provide stability amid commodity price fluctuations and broader economic factors. The company’s resilient performance during the COVID-19 pandemic and consistent distribution raises make it an attractive choice for income investors.

Gross’s endorsement of Western Midstream reflects its bond-like predictability and steady income potential. With a lower forward price-to-earnings ratio compared to its peers, Western Midstream offers a potential discount for investors. While there are other investment options in the market, Western Midstream provides a balance of growth, dividend income, and predictability for investors seeking stability in their portfolio.

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