Want to earn a more passive income? These two dividend stocks offer yields above 6%.
There are many ways to earn more passive income. Investing in high-yield dividend stocks is a great option. The best pays dividends that grow with advantage.
Energy Transfer (NYSE:ET) and Clearway Energy (NYSE: CWEN)(NYSE: CWEN.A) Currently available Dividend yield Over 6%. It’s a few times higher S&P 500’s More than that Dividend yield of just 1.2%. Even better, They hope to grow high-yield payments over the next few years. So they should be able to provide a lot of passive income to investors in the future.
Currently, energy transfer has a distributed yield of 6.2%. At that rate, every $100 invested in a mid-level energy company generates $6.20 in passive income per year, compared to only $1.20 from the S&P 500 index fund. Master Limited Partnership (MLP) supports high yield payments with stable cash flow and solid financial foundations. Approximately 90% of revenue comes from predictable fee-based contracts to provide mid-class services to energy companies. On the other hand, there is a conservative payment rate (just over 50% of free cash flow) and a strong balance sheet. the Leverage Ratio teeth the current It is heading towards the low end of the target range of 4-4.5 times.
The MLP generates sufficient free cash flow after paying the distribution to cover growth capital expenditures. Within the range of $2.5 billion to $3.5 billion each year. The company has several expansion projects Ongoing, Recently approved the $2.7 billion Huberlinson pipeline. Energy Transfer’s current growth capital project will provide incremental revenue and cash flow by the end of next year. Meanwhile, there are several more expansion projects during development. Long-standing Lake Charles LNG Project.
Furthermore, energy transfer has a long history of gaining acquisitions. Last year, the company purchased WTG Midstream in a transaction that adds $0.04 per unit to this year’s distributable cash flow, increasing to $0.07 per unit in 2027. opportunity It occurs.
Energy transfer growth drivers promote the view that its distribution could increase by 3% to 5% per year. It makes it a big passive income option for those who are happy with investing in MLP. Schedule K-1 Federal Tax Form Every year.
Currently Clearway Energy pays a 6.5% – Yield dividend. Clean Energy Infrastructure Company supports its payment very Stable cash flow. It sells its power Renewable Energy Natural gas power plants are produced to utility and corporate customers under long-term fixed-rate electricity purchase agreements.