Recession-Proof Business Now Yields 5%

While I might be lukewarm to the companies actually pumping for oil and gas, you can call me a big fan of the businesses that transport energy supplies from the wellhead to customers. Just as the biggest profits in a gold rush don’t go to the prospectors but rather the people selling picks and shovels, the biggest profits in the energy sector don’t go to people drilling for crude. Instead, the real money gets made by the people who own the energy infrastructure that keeps the business humming—pipelines, terminals, processing plants, etc.

Case in point: Pipeline giant TransCanada Corporation (NYSE:TRP). This company is set to benefit from North America’s booming oil and gas output—courtesy of new technologies like hydraulic fracturing, horizontal drillings, and oil sands mining. The long-term excitement about this stock is tempered by near-term concerns over rising interest rates, the company’s Keystone XL pipeline, and new regulations from the Federal Energy Regulatory Commission. I’ll let the market throw a hissy fit over the next quarter or two—and I’ll urge you to take a second look at this top dividend stock that could be a big long-term winner.

Source: Income investors

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