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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Original headline: 3 High - Yield Energy Stocks to Load Up on This October ( 1 Yields Over 7 . 5 %)
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- 3 High-Yield Energy Stocks to Load Up on This October (1 Yields Over 7.5%)
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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ONEOK (NYSE:OKE) closed at $93.31 on October 16 and returned 11.4% over six months, versus 10.5% for the Insider Monkey Billionaire Index. The stock trades at 14.49 times next year's expected earnings and yields 4.59%, and revenue rose 52.80% last quarter as the company grew through acquisitions. The article argues that much of this growth was bought rather than built, with only 13.25% of revenue remaining as operating profit and debt at 143.07% of equity. Because a large part of the business involves buying and reselling liquids rather than earning transport fees, the article views the discount as having a reason behind it. It concludes that investors should watch margins rather than revenue.
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