What Does the Strategy Invest in?
The Energy Income Strategy is designed to create the maximum sustainable dividend to investors who are willing to invest in the existing energy infrastructure in the United States and Canada. These assets include pipelines for gathering and distributing natural gas and oil. The activities of the companies in which we invest include transport of natural gas, oil, and propane for use in heating homes, operating factories, jet travel, shipping, and other forms of transportation.
Our primary focus is on the transportation of natural gas, the cleanest fossil fuel to generate electricity to charge electric cars, cook food, heat homes factories, and offices, and other essential operations. As the world moves away from coal and nuclear to generate electricity, natural gas allows us to reduce carbon emissions, especially when we include renewable energy.
Sustainable Current Income
Midstream energy companies produce yields ranging from 5 percent to as high as 15 percent and more. We examine each investment to determine if the yield is sustainable for each company in which we invest. We examine the geography of operations, the coverage ratio, leverage ratio, free cash flow, and make sure to the best of our ability to make sure that the trends are favorable.
New Age of Energy Infrastructure Investing is on the Horizon
When renewable energy companies emerge that pay a dividend to investors, we will include them in our investible universe. We pay particular attention to a company’s efforts to increase its ratings related to environmental, social and governance issues.