The article recommends three midstream pipeline stocks with high yields: Enterprise Products Partners (forward distribution yield of 6.3%, 1.9x coverage, and 28 consecutive years of distribution increases), Energy Transfer (6.8% yield, 2.28x DCF coverage in the first half of 2026, and its 19th consecutive quarterly increase), and MPLX (roughly 7.5% yield, 1.3x coverage, and 12.5% distribution increases in both 2024 and 2025). It links their outlook to natural gas demand from AI data centers. As an illustration, the article says a $10,000 investment in each of the three would generate around $2,068 in annual income. It argues the companies do not need elevated oil prices or unchanged Federal Reserve rates to keep paying, as long as natural gas and other fuels keep flowing through their pipelines.
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Enterprise Products Partners (EPD) offers a forward distribution yield of 6.3%, backed by a 1.9x coverage ratio and 28 consecutive years of distribution increases. Energy Transfer (ET) yields 6.8% with a 2.28x distributable cash flow coverage ratio in the first half of 2026, plans 3% to 5% annual distribution growth over the long term, and has delivered 19 consecutive quarterly distribution increases. MPLX (MPLX) yields roughly 7.5% with a lower 1.3x coverage ratio, but raised its distribution by 12.5% in both 2024 and 2025 and targets similar increases in 2026 and 2027. The article argues that rising natural gas demand from AI data centers supports all three midstream companies, and estimates that a $10,000 investment in each of the three would generate around $2,068 in annual income.
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