FuelAlternative investors typically focus on energy bargains linked to the solar, wind, and biofuel industries. Traditional oil and gas companies aren’t often in focus, largely due to their costs and the contradiction of clean vs. dirty energy. However, a stock like BP Midstream Partners LP (NYSE: BPMP) could be used to bolster an alternative portfolio with a smart traditional pick.

BP Midstream Partners LP operates pipelines and other assets for the transportation of natural gas, refined products, and crude oil. While the demand for alternative energy is increasing, the demand for oil and refined fuels is still incredibly strong. Until we make a complete transition to electric vehicles and alternative power generation, stocks like BP Midstream Partners LP will remain viable.

This company has generated revenue growth for three consecutive years, with a 10.33% sales increase in 2019. Income grew by 10.17% in the same year and the gross profit margin was reported at 81.04%. The company’s profitability extends to its EBITDA margin of 69.37%. This profitability supports a lucrative dividend with a yield of 13.14% today.

BP Midstream Partners will have to evolve if it is to stay relevant in an alternative energy future. But, for now, it is a viable energy investment that could help to create income in a portfolio that is primarily focused on clean energy and emerging technology. The target price of $12.93 and a reliable dividend are simply too compelling to ignore.

Key Data:

  • 1 Year Price Growth: -26.58%
  • YTD Price Growth: -32.22%
  • 3 Month Price Growth: -9.34%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.