Stocks from the basic material sector could complement your portfolio and hedge it against strong commodity price increases. One industry from the basic material sector with the highest yielding stocks is the oil and gas pipeline industry.
Thirty-nine companies are linked to the industry of which 37 pay dividends. Combined they have a total market capitalization of USD800 billion. Nearly 60 percent of the industry players have a yield over 5 percent and some have a really great dividend history. Thanks to the share gas boom it’s now possible that more pipeline infrastructure is needed. The average industry yield amounts to 4.72% and the P/E ratio is 33.40.
You should have seen some interesting pipeline companies on my blog in the past. Normally I am no fan of real estate companies because of the huge amounts of money they need for growing. But pipeline operators look different. They pay huge dividends and have the ability to grow dividends year over year. Their business model works but I don’t know how long. Pipeline operators are better than real estate stocks but it could be possible that the time brings some changes, especially when the energy demand and supply is changing.
— Guru Focus