The Best Energy Stocks To Buy Now - Part 2

After oil prices rose to multiyear highs in the mid-$70s per barrel earlier this summer, they have hung in the high$60s in August so far as the resurgent coronavirus spurs international travel restrictions while the number of people receiving vaccinations steadily rises. Oil prices are likely to remain stable while the global economy recovers amid the global pandemic, says Rob Thummel, senior portfolio manager at TortoiseEcofin in Overland Park, Kansas.

Taking into account the lack of clear direction for oil and the intensifying push to combat climate change, here are seven valuable energy stocks to add to a portfolio.

Western Midstream Partners LP (WES)

Western Midstream Partners is a master limited partnership, or MLP, with assets in New Mexico, the Rocky Mountains, Pennsylvania and Texas. The partnership provides investors with a 6.9% dividend yield. Investors are drawn to MLPs with a high free-cash-flow yield, which can result in lowering debt levels, increasing dividends and buying back stock. Energy companies tightened their capital spending budgets, and many have double-digit free cash flow yields, compared to the 5% free cash flow yield of S&P 500 companies, Thummel says. These free cash flow yields are estimated to increase in 2022, he adds.

Source: https://finance.yahoo.com/news/10-best-energy-stocks-buy-191617467.html

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