If you’re a dividend growth investor looking for both high income and long-term capital appreciation, this stock deserves your attention. Operating in the heart of the U.S. energy infrastructure sector, this company combines the appeal of a 7.61% forward yield with a standout 15% three-year dividend compound annual growth rate—well into the top 20% of all dividend stocks. That kind of dividend growth, paired with a disciplined 39% payout ratio, is exactly what our Dividend Growth Portfolio looks for when reaffirming high-conviction positions. With a diversified mix of pipeline, storage, and export operations, the company provides essential services that are in increasing demand as power generation, data centers, and industrial facilities ramp up energy usage.
Industry trends are strongly in its favor. U.S. natural gas and NGL infrastructure remains a backbone of global energy trade, and this company is positioned to benefit from both domestic consumption and rising export demand. Its ongoing infrastructure expansions and new projects in the Southwest and Gulf Coast are designed to capture growth for years to come, backed by long-term contracts and mid-teen return targets. Yet risks remain. The most recent earnings came in below expectations due to weaker performance in certain segments and cost pressures, and the company has adjusted full-year guidance downward. Still, strong free cash flow and high liquidity help mitigate these risks and support the dividend.
Want to find out how this high-yield dividend grower holds up against its peers, where its growth story goes from here, and what could impact its dividend safety in the long run? Read the full analysis to discover why this stock has been reaffirmed in our Dividend Growth Portfolio—and why it could belong in yours too.
