Pipeline stocks are one area in the energy space investors should include in their portfolio. Dan Dicker, Senior Energy Analyst at TheStreet, tells Jill Malandrino pipeline stocks are not just for your grandfather anymore as a defensive, dividend-producing vehicle. For example if you look at Williams (WMB), which was a failed natural gas play, it has now re-energized itself as an infrastructure play. WMB has done a tremendous job with the transition and that is reflected in the five-year chart. Dicker says that in a very volatile crude oil market, pipelines have proven to be dependable, long-term investments. This week WMB rejected an offer from Energy Transfer Equity (ETE) at a 35% premium, and Dicker says WMB was right in rejecting it because it simply was not enough. Kinder Morgan (KMI), the ‘mother of all pipeline companies’ is one of Dicker’s favorites as the company has made all of the right moves with the restructuring. The energy sector is a tough space to like right now, but pipelines is an area to be excited about.
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