Should I invest 1,000$ in PAGP or in FRO for the best possible returns?
Asked 4 years ago
I've been doing some research, I got 1,000$ that I'm going to invest. Took some advice, going to get SCHD, SPYD, and thinking either PAGP OR FRO. Thoughts and/or advice? Thank you.
Andrew Moran
Tuesday, June 15, 2021
Good job on picking SPYD and SCHD, even though they are trading close to 52-week highs. They also have good yields, so if you are investing long-term, you will generate a good income.
Is It PAGP or FRO?
Both are great long-term investment plays because of their primary business model of transporting crude oil and natural gas. With more nations adopting and importing enormous amounts of natural gas, shipping firms like PAGP and FRO will be imperative companies.
The Dividends
That said, PAGP pays a healthy dividend of 18 cents per quarter. FRO suspended its dividend last September. On this front, PAGP has the advantage as it suggests strong fundamentals.
What Does Wall Street Say?
Wall Street analysts also maintain a mostly "Hold" rating for FRO and mostly a "Buy" and "Strong Buy" for PAGP. These are individuals who comb through the financials, so they have a good grasp of what is going on inside these businesses.
PAGP is the Better Investment
If I were to invest in either business, I'd go with PAGP, mainly because of the healthy quarterly yield.
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