3 Ultra High-Yield Stocks to Buy With $10,000 and Hold Forever
The Motley Fool·2025-12-18 02:40

Core Viewpoint - The midstream master limited partnership (MLP) sector is currently a strong investment opportunity due to high yields and solid financial health of the companies involved [1][2]. Company Summaries Western Midstream - Western Midstream Partners offers a yield of 9.2%, making it one of the most attractive high-yield stocks available [4]. - The company has a market capitalization of $16 billion and a gross margin of 53.34% [5][6]. - It has a leverage ratio of 2.8 and is expanding its operations, including the acquisition of Aris Water Solutions and the development of the Pathfinder Pipeline [6][7]. - The company plans to grow its distribution at a mid-single-digit rate in the coming years [7]. Energy Transfer - Energy Transfer has an 8% yield and is in strong financial shape, with a market cap of $56 billion and a gross margin of 12.85% [8][9]. - Approximately 90% of its business is fee-based, providing stability as it is less exposed to commodity price fluctuations [7][9]. - The company is investing nearly $10 billion in growth capital expenditures over the next two years, with an expected return in the mid-teens [10]. - Energy Transfer aims to grow its distribution by 3% to 5% annually [10]. Enterprise Products Partners - Enterprise Products Partners has a yield of 6.8% and has consistently raised its payout for 27 consecutive years [11]. - The company has a market cap of $69 billion and a gross margin of 12.74% [12]. - It maintains a coverage ratio of 1.5 and a leverage ratio of 3.3, indicating a solid financial position [11][12]. - Enterprise is expected to reduce capital expenditures next year, leading to strong free cash flow and flexibility for capital allocation [13][14].