Top Dividend Stocks: Western Midstream

Top Dividend Stocks: Western Midstream's Jaw-Dropping 8.3% Yield Entices
https://finance.yahoo.com/m/aca8bb62-08a8-330c-962e-8dc7d868ad85/top-dividend-stocks-western.html

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Summary

Western Midstream Partners (WES) is a top dividend stock that offers investors a jaw-dropping 8.3% yield. The company stores, processes, and transports natural gas and crude oil across the U.S. Midwest.

WES has been a strong performer in recent months, with shares up 10% since it was highlighted in Investors.com's Income Investor column in March. The company's dividend yield has also increased from 7.9% to 8.3% during that time.

WES is scheduled to pay its next quarterly distribution of 57.5 cents per share on November 13. To cash in on the next distribution, investors must purchase shares before October 31.

The company will also report its third-quarter earnings on November 2. Analysts expect WES to earn 64 cents per share on revenue of $799.5 million.

One focal point of the earnings call will likely involve the company's recent acquisition of Meritage Midstream. The $885 million deal is expected to drive synergies with WES's current assets, though it comes at the cost of increasing debt.

Another factor that could move WES shares is enhanced volatility in the energy sector due to the crisis in the Middle East. However, domestic oil and gas pipeline stocks are more sheltered from this risk, and WES's fee-based contracts have resulted in lower volatility.

Overall, WES is a top dividend stock that offers investors a high yield and a relatively low-risk investment.

Technical Analysis

Shares of WES are trading above both the 50-day and 200-day moving averages. The stock is forming a flat base amid a greater consolidation with a buy point at 28.74.

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Comment

The war in the Middle East is causing energy prices to fluctuate again in the wake of a potential war between oil-producing countries.

As a result, U.S. energy stocks are moving again, and dividend yields are expected to increase due to higher yields.

It's worth remembering that investing in companies with steady revenue growth and increasing dividend yields will always provide stable portfolio returns over the long term.