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Exploring a High-Yield Energy MLP with a Decade-Long Dividend Increase Track Record

In the dynamic landscape of dividend investing, a standout large-cap Energy MLP has caught the attention of investors seeking robust dividend growth. With a forward dividend yield of 8.46%, this entity surpasses the industry average of 6.1%, positioning itself in the top 20% of high-yield stocks. Such figures prompt a word of caution against potential dividend traps, highlighting the importance of discerning investment choices.

A remarkable ten-year streak of dividend increases places it in the upper echelon of stocks, signaling a promising outlook for future growth. This performance is underscored by a year-to-date return of 12%, mirroring the sector’s average and outpacing broader market indices. Additionally, the stock has managed to stay ahead of this portfolio’s benchmark, since being added at the beginning of this year.


Investors are eagerly anticipating the next payout, estimated at $0.850 per share, expected around April 25. This announcement not only reiterates the investment’s consistent yield but also serves as a prelude to an in-depth analysis.

While arriving at the recommendation we also factored in the 4Q23 earnings call discussion by the company management held on 31 Jan, 2024. The energy infrastructure and logistics company reported solid growth and financial performance in 2023, driven by operational efficiency and strategic investments across its business segments. The company highlighted significant operational achievements, particularly in its logistics and storage, and gathering and processing segments, fueled by robust customer demand and capital investments.

An optimistic long-term outlook was shared, based on continued demand for hydrocarbons, with strategic acquisitions and a disciplined capital expenditure plan targeting growth. Financially, the company continues to demonstrate robust trends in earnings, distributable cash flow, and commitment to returning capital to unitholders.

The forthcoming exploration will delve into optimizing returns potential through dividend growth and safety, with an eye on balancing returns risk and yield attractiveness.

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