This blue-chip is the highest-yielding safe midstream on Wall Street and just raised its payout 10% to a mouthwatering 9.4%.
It is up 21% in 2022 on the back of one of the best energy rallies in history. It might potentially fall as much as 20% in the coming months if the market suffers a 16% to 27% decline in the first half of 2023.
Analysts expect the 9.4% yield to rise to 12.2% yield on today’s cost. In the event of a 15% to 27% market decline in Q1, This blue-chip might yield 11% to 12%.
Analysts expect 6% payout growth through 2027 as well as one of the strongest balance sheets in the industry, thanks to the FCF self-funding business model.
This is an anti-bubble blue-chip trading at 6.9X cash flow and 16% historically undervalued.
It could double in the next five years, and analysts expect a 27% gain within one year, which is 100% justified by fundamentals.
Long-term 12.4% annual return potential is almost as good as the Nasdaq and better than the S&P 500, or high-yield ETFs.