Master limited partnerships (MLPs) work best when they offer a steady flow of product through their pipelines. One of the best ways to achieve that is through having a top-notch partner create the MLP. This can lead to plenty of steady profits and cash flows as these pipelines are always in use. The latest selection for our Best Energy Dividend Stocks List is one such MLP.
The win for our new pick is that its partner is a medium-sized refiner in Texas with several refineries and plants under its umbrella. Our pick’s partner originally created the MLP to hold all the tank farms, gathering lines and refined product lines that feed its operations. This has provided a stable base of cash flows since our pick launched a decade ago.
The added appeal is that our pick has expanded to own several other key pipelines and gathering systems in the state, all of which has provided plenty of additional cash flow growth for the MLP. For investors, it’s resulted in nine years’ worth of steady dividend increases – the latest being a 3% jump to its payout. The stock is expected to go ex-dividend next on April 22 (estimated date).
With rising energy demand and continued volume increases along its system, our pick has a long runway for growth ahead. Investors are able to ride along with that nearly 9% tax-advantaged yield.
You can check out the Best Energy Dividend Stocks List to explore all the stocks.
