What volatility? That’s what investors in the midstream sector have been saying over the last few months. With energy prices ebbing and flowing, the firms that own pipelines and other midstream assets have been sitting pretty. And that includes our latest Best Energy Dividend Stocks List pick and its investors. With a recent 0.8% distribution increase, our pick now offers a nearly 10% yield!
You can check out the Best Energy Dividend Stocks List to explore all the stocks.
Our pick happens to be one of the largest midstream players in the nation, with over 120,000 miles worth of pipelines and other assets. With such a huge system, our pick delivers more than 30% of all the energy moved in the nation. The win for our pick is that this system is based on volumes and not the underlying commodity. And in that, it features very high toll road-like cash flow.
For investors, this all plays out in the firm’s dividends. Thanks to its high founder ownership, our pick has long been a stalwart dividend stock. After a slight pandemic pause in payout increases, it’s back at it. Better still, it’s structured as a master limited partnership (MLP), and one of the few remaining ones. This provides plenty of tax advantages.
The best part is that our pick has continued to find ways to grow. It’s long been a serial acquirer of other MLPs and midstream assets, while its huge system allows for expansion and bolt-on projects. That will keep the dividends going for the long haul.
To make room for our new midstream pick, we’ve been forced to remove another midstream stock from the list.
