Domestic Energy: Martin Midstream Partners
Dividend Yield: 6.7%
Last but not least, we have to give a nod to the fracking-driven domestic energy boom. As Kennedy pointed out, America produced an average of 7.2 million barrels of crude per day since January — the highest rate since 1991 — and the U.S. trade deficit has been steadily sliding as a result.
This mega-trend is hardly news, and it can be played from all angles. One especially promising option: Martin Midstream Partners (MMLP).
This master limited partnership cleans up, stores and transports gas — essentially collecting a “toll” on the gas that passes through its pipelines, then passing most of that toll along to shareholders per its MLP status. The current result of that setup: a mouth-watering 6.7% yield.
It’s important to note that this small-cap dividend stock only trades less than 50,000 shares daily, so interested investors should use stop-losses and limit orders.
Still, as InvestorPlace contributor Michael Shulman explained back in March, Martin Midstream Partners “has extensive operations in the Gulf — the destination of a great deal of fracking, with everything coming from Texas, Oklahoma, and North Dakota,” and thus is “sitting right where a great deal more gas is heading over the next one to twenty five years.”
Beyond that, you can rest easy long-term knowing that MMLP’s businses is not tied to the price of the gas that it transports, but to the unit volume.
As long as the gas keeps flowing, so will Martin’s payouts.
As of this writing, Alyssa Oursler did not hold a position in any of the aforementioned securities.