One of North America’s largest midstream energy operators is earning a larger share of our Best High Dividend Stocks Portfolio, and the case begins with a 7.15% forward dividend yield that ranks in the top 20% of all dividend-paying stocks. This is not merely a high number printed on a data screen — it reflects the scale and durability of a fee-based infrastructure business that moves natural gas, natural gas liquids, crude oil, and refined products across approximately 140,000 miles of pipeline spanning 44 states. The business earns the vast majority of its revenue through long-term, contracted fee arrangements, which means that income does not hinge on the daily swings of commodity prices — a crucial distinction for investors focused on predictable, high-income distributions.
The company sits at the crossroads of two of the most powerful structural demand themes in American energy right now: the accelerating buildout of data center infrastructure requiring firm natural gas supply for power generation, and the sustained global appetite for liquefied natural gas exports and natural gas liquids. Management reported record full-year adjusted EBITDA of over $15 billion in 2025 and raised its 2026 guidance to a range of $17.45 billion to $17.85 billion, signaling confidence in the earnings trajectory ahead. New pipeline projects, including a major intrastate line connecting west Texas production basins to high-demand markets, reflect a disciplined capital deployment strategy tied to contracted, visible cash flows.
Challenges remain — debt at 3.9 times net leverage sits modestly above the peer group average of 3.6 times, and a below-expectations quarterly earnings result highlighted timing items in hedging settlements and weather-related export delays that management expects to recover in the coming year.
The combination of a high, well-covered yield, growing infrastructure earnings, and broad exposure to multiple revenue streams across the domestic energy ecosystem makes this a compelling consideration for high-income investors. This increased position in the Best High Dividend Stocks Portfolio reflects the portfolio’s mandate to own large-scale, fee-generating infrastructure businesses where the dividend yield is not only high but supported by durable cash flow fundamentals and a growing earnings base.
