In this article we discuss the 5 best income stocks to invest In. If you want to read our detailed analysis of, go directly to the 10 Best Income Stocks to Invest In.
5. Phillips 66 Partners LP (NYSE: PSXP)
Dividend Yield: 9.66%
Number of Hedge Fund Holders: 4
Phillips 66 Partners LP (NYSE: PSXP) is an oil company that owns, acquires, and develops midstream assets. Phillips 66 stock has been on an upward trajectory after the company announced it is seeking merger or partnership deals for its MLP partners. The stock ranks 5th in the list of best income stocks to invest in.
The company finished the first quarter of 2021 with a strong balance sheet with cash and cash equivalents of $3 million. The Partnership declared a quarterly dividend of $0.875/share. The company has a record of increasing dividends since October 2013.
In a bid to expand its capacity, Phillips 66 Partners LP (NYSE: PSXP) is constructing a 16-inch C2G ethane pipeline, which is expected to be complete by the end of 2021. The new pipeline will connect the company’s Clemens Caverns storage facility to Gregory petrochemical facilities in Corpus Christi.
4. Höegh LNG Partners LP (NYSE: HMLP)
Dividend Yield: 11.03%
Number of Hedge Fund Holders: 6
Höegh LNG Partners L.P. (NYSE: HMLP) is an energy company that owns, operates, and acquires liquefied natural gas (LNG) carriers, floating storage, and regasification units (FSRUs), and other LNG infrastructure assets under long-term charters. The stock ranks 2nd in the list of best income stocks to invest in.
In its latest financial results, Höegh LNG Partners L.P. (NYSE: HMLP) reported $36.1 million in revenue for Q4 2020 compared to $38.5 million reported in Q1 2019. The company generated operating income amounting to $25.5 million during the quarter, while net income totaled $18.5 million. The company has a record of increasing dividend since October 2014.
Höegh LNG Partners L.P. (NYSE: HMLP) shareholder Cobas Asset Management recently announced that it would vote against a proposed takeover by Leif Höegh and funds. Cobas Asset Management owns a 13% stake in the oil company. Leif Höegh recently announced that it was partnering with Morgan Stanley Infrastructure Partners to acquire Höegh LNG private for $2.74 billion.
3. USA Compression Partners, LP (NYSE: USAC)
Dividend Yield: 13.82%
Number of Hedge Fund Holders: 2
USA Compression Partners, LP (NYSE: USAC) offers compression services under fixed-term contracts to companies in the oil industry.
The company reported total revenues of $157.5 million in Q1 2021 compared to $179.0 million reported in Q1 2020. Net income during the quarter was $0.4 million compared to a net loss of $602.5 million reported in Q1 2020. Following the positive earnings report, USA Compression Partners, LP (NYSE: USAC) declared a quarterly dividend of $0.525/share. The company has a record of increasing dividends since May 2013. The stock ranks 3rd in the list of best income stocks to invest in.
USA Compression Partners, LP (NYSE: USAC) also got its rating improved from “Neutral” to “Buy” by UBS’s Sheer Gershuni.
2. Shell Midstream Partners, L.P. (NYSE: SHLX)
Dividend Yield: 11%
Number of Hedge Fund Holders: 7
Shell Midstream Partners, L.P. (NYSE: SHLX) is an oil company that owns, operates, and develops pipelines and other logistical and midstream assets in the U.S. The company has a record of increasing dividend since January 2015.
The company recently reported $163 million or $0.37 per share in net income attributable to the Partnership for Q1 2021. Shell Midstream Partners, L.P. (NYSE: SHLX)’s also reported $201 million in revenue attributed to the partnership.
In its quarterly update, the company said it had reported an 11% growth in offshore oil pipeline volumes in Q1, although onshore flows continued to drop due to the COVID-19 pandemic. Shell Midstream Partners, L.P. (NYSE: SHLX)’s Louisiana coast-based Mars crude oil pipeline system reported a 13.0% growth in volumes from 441K/ bbl/day in Q4 2020 498K in Q1 2021.
Shell Midstream Partners, L.P. (NYSE: SHLX) is working on expanding the system by ~65K bbl/day, and currently, the group is acquiring materials for the expansion.
1. IBM Common Stock (NYSE: IBM)
Dividend Yield: 4.53%
Number of Hedge Fund Holders: 51
IBM Common Stock (NYSE: IBM) tops the list of best income stocks to invest in now. The company has been increasing its dividend consistently for the last 26 years. Last month, IBM declared a quarterly dividend of $1.64 per share, a 0.6% increase from prior dividend of $1.63.
You can also take a peek at 10 Best Healthcare Dividend Stocks and Top 15 Dividend Stocks With Upside Potential.
