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During the past few years, central banks all around the world have been trying to stimulate the economy. They have been using various expansionary monetary policies. The Fed has committed to ultra-low interest rate for at least another two years. Fed’s monetary policy is enabling the Federal government to spend more than it should. Elevated budget deficits and gridlock in Washington increased the probability of debt monetization significantly. There are no easy solutions.

That’s why we have been recommending investors to purchase high dividend stocks. These stocks are better choices than bonds and they can partially protect investors from inflation. Energy stocks also can protect investors from inflation as well as a decline in the value of dollar. Additionally, stocks with low beta are relatively less risky. They are also less correlated with the economy and their prices will be more stable than other stocks especially during market turmoils.

Below we compiled a list of high dividend energy stocks with low beta. All companies have at least $5 billion market cap, dividend yield of at least 4%, and beta lower than 1. The market data is sourced from Fidelity.

Company

Symbol

Beta

Dividend Yield %

ENTERPRISE PRODUCTS PARTNERS

EPD

0.55

5.46

KINDER MORGAN ENERGY

KMP

0.41

5.90

WILLIAMS PARTNERS LP

WPZ

0.51

5.01

ONEOK PARTNERS LP

OKS

0.32

4.39

PLAINS ALL AMERICAN PIPELINE

PAA

0.36

5.83

ENERGY TRANSFER PARTNERS LP

ETP

0.44

8.05

ENBRIDGE ENERGY PARTNERS LP

EEP

0.46

7.01

ENERGY TRANSFER EQUITY LP

ETE

0.57

6.72

MAGELLAN MIDSTREAM PARTNERS

MMP

0.28

4.91

EL PASO PIPELINE PARTNERS

EPB

0.35

6.07

LINN ENERGY

LINE

0.74

7.52

BUCKEYE PARTNERS

BPL

0.38

6.49

BOARDWALK PIPELINE PARTNERS

BWP

0.55

7.73

Energy Transfer Partners LP (NYSE:ETP): Energy Transfer Partners is engaged in natural gas operations. ETP has the highest dividend yield among the stocks listed above. It has a dividend yield of 8.05% and a beta of 0.44. It has a market cap of $10.0B, a P/E ratio of 33.09, and lost 9.08% since the beginning of this year. Jean-Marie Eveillard’s First Eagle Investment Management had $4.1 million invested in ETP.

Magellan Midstream Partners LP (NYSE:MMP): Magellan Midstream transports, stores and distributes refined petroleum products. MMP has the lowest beta among the stocks in the table above. Its beta is 0.28 and it has a dividend yield of 4.91%. MMP has a market cap of $7.4B, a P/E ratio of 18.96, and returned 22.72% since the beginning of this year. Chuck Royce had $26 million invested in MMP.

Plains All American Pipeline, L.P. (NYSE:PAA): Plans All American Pipeline transports and stores natural gas-related petroleum products. PAA is the stock with the lowest P/E ratio. Its P/E ratio is 16.48. PAA has a dividend yield of 5.83% and a beta of 0.36. It has a market cap of $10.7B and returned 16.60% since the beginning of this year.

Williams Partners L.P. (NYSE:WPZ): Williams Partners explores, produces and transports natural gas. WPZ is the best performing stock on the list above. It returned 36.90% so far this year. WPZ has a dividend yield of 5.01% and a beta of 0.51. It has a market cap of $17.6B and a P/E ratio of 17.9. Jean-Marie Eveillard’s First Eagle Investment Management invested $74 million in WPZ stocks at the end of September.

Enterprise Products Partners LP (NYSE:EPD): Enterprise Products Partners is a midstream energy company in North America. EPD has a dividend yield of 5.46% and a beta of 0.55. It has a market cap of $39.3B, a P/E ratio of 23.88, and returned 14.02% since the beginning of this year. Jim Simons is bullish about EPD. As of September 30, his Renaissance Technologies had $18 million invested in the stock.

Kinder Morgan Energy Partners LP (NYSE:KMP): Kinder Morgan is a pipeline transportation and energy storage company. KMP has a dividend yield of 5.90% and a beta of 0.41. It has a market cap of $26.4B, a P/E ratio of 465.69, and returned 20.06% since the beginning of this year.

ONEOK Partners, L.P. (NYSE:OKS): ONEOK gathers, processes, stores and transports natural gas in the United States. OKS has a dividend yield of 4.39% and a beta of 0.32. It has a market cap of $11.0B, a P/E ratio of 20.48, and returned 17.36% since the beginning of this year.

Other high dividend energy stocks with low beta include Enbridge Energy Partners LP (NYSE:EEP), Energy Transfer Equity, L.P. (NYSE:ETE), El Paso Pipeline Partners, L.P. (NYSE:EPB), Linn Energy, LLC (NASDAQ:LINE), Buckeye Partners LP (NYSE:BPL) and Boardwalk Pipeline Partners, LP (NYSE:BWP). We strongly encourage investors to do some in-depth research of these stocks for their portfolio.

Source: 13 High-Dividend Energy Stocks With Low Beta