High-Yield Stocks for Passive Income Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 22 2026
0mins
Source: Fool
- Clean Energy Leadership: Clearway Energy (CWEN) secures stable cash flow through long-term power purchase agreements, supporting a 4.7% dividend yield, with expected cash flow per share growth of 7% to 8% annually through 2030, providing ample capacity for continued dividend increases.
- Energy Infrastructure Expansion: Energy Transfer (ET), a master limited partnership, generates 90% of its earnings from stable fee-based revenue, boasting a 7.1% dividend yield, and plans to invest at least $5 billion in 2023 to expand its natural gas pipeline systems, with projected annual dividend growth of 3% to 5%.
- REIT Advantages: Realty Income (O) owns a diversified property portfolio, benefiting from a 4.9% monthly dividend yield supported by long-term net leases, having increased its dividend for 113 consecutive quarters, and is expected to continue expanding its asset base with billions in annual investments.
- Telecom Cash Flow: Verizon (VZ) anticipates generating $21.5 billion in free cash flow in 2023, approximately $10 billion above its annual dividend payments, enhancing its debt repayment capacity and strategic investment potential, while maintaining a 19-year dividend growth streak.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy ET?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on ET
Wall Street analysts forecast ET stock price to rise
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 18.590
Low
17.00
Averages
20.65
High
23.00
Current: 18.590
Low
17.00
Averages
20.65
High
23.00
About ET
Energy Transfer LP owns and operates a diversified portfolios of energy assets in the United States, with more than 140,000 miles of pipeline and associated energy infrastructure. The Company’s strategic network spans 44 states with assets in all of the major United States production basins. Its core operations include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGL) and refined product transportation and terminalling assets; and NGL fractionation. The Company’s segments include intrastate transportation and storage, interstate transportation and storage, midstream, NGL and refined products transportation and services, crude oil transportation and services, investment in Sunoco LP, investment in USA Compression Partners, LP (USAC), and all other. It also owns Lake Charles LNG Company, LLC, its wholly owned subsidiary, which owns an LNG import terminal and regasification facility.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Energy Midstream Stocks Offer Stable Income
- Energy Transition Potential: Energy Transfer (ET) currently boasts a 7.1% dividend yield and plans to increase distributions by 3% to 5% moving forward, leveraging its extensive midstream operations and stable fee-based business to provide long-term passive income for investors.
- Consistent Growth Performance: Enterprise Products Partners (EPD) has increased its distribution for 27 consecutive years, with a current yield of 5.9%, and is projected to achieve double-digit growth in adjusted EBITDA and cash flow by 2027, demonstrating its reliability and resilience in uncertain markets.
- High Yield Appeal: Western Midstream (WES) offers an 8.6% yield, ranking among the highest in the midstream sector, and while facing some short-term challenges, it expects a 3% increase in distributions in 2026 and maintains financial stability through a restructured fixed-fee agreement with Occidental.
- Strategic Diversification: Western Midstream is actively expanding its footprint in the produced water business through acquisitions like Aris Water Solutions and the Pathfinder Pipeline project, and despite the transition period, it is still poised for adjusted EBITDA growth, enhancing its competitive position in the market.
See More
U.S. Congress Revives Energy Permitting Reform Discussions
- Bipartisan Cooperation Resumes: Senate Environment and Public Works Committee Chair Shelley Moore Capito and ranking Democrat Sheldon Whitehouse are meeting again to discuss energy permitting reform, indicating a willingness for bipartisan collaboration on energy infrastructure development.
- Frequent Negotiations: Sources indicate that both parties will be communicating frequently this week, although no specific meeting times have been set, suggesting that the reform process is gaining momentum with committee staff actively negotiating.
- Increased Political Pressure: With energy prices soaring, lawmakers are under significant political pressure to reach a permitting reform agreement this year to lower energy costs and meet the rising demand for energy, particularly from power-hungry data centers.
- Complex Legislative Background: Despite the House passing the SPEED Act last year to streamline permitting, negotiations in the Senate are ongoing, and any final agreement may involve changes to longstanding environmental laws to expedite approvals for both renewable and traditional energy projects.
See More
Kinetik Energy's Dividend Growth Outlook Optimistic Amid Price Surge
- Dividend Yield Advantage: Kinetik currently boasts a 7.1% dividend yield, surpassing most peers, with expectations for a 3% to 5% increase this year, which will enhance investor appeal, particularly against the backdrop of rising energy prices.
- Strong Market Performance: The stock has surged 26% year-to-date due to soaring oil and gas prices driven by the Iran conflict, indicating increasing investor interest in energy stocks, which may propel future growth for the company.
- Acquisition Potential: Analysts are turning bullish on Kinetik, with Raymond James upgrading its rating to outperform in January, suggesting the company could become a takeover target for several midstream players, thereby increasing market attention.
- Improving Profitability: Kinetik's current dividend coverage ratio stands at 1.2, expected to rise to 1.5 by year-end, and with increasing cash flows, the dividend growth plan will be strengthened, potentially achieving a 7% growth by 2027.
See More
5 High-Dividend Stocks That May Provide Stability During Market Fluctuations
Market Volatility and Investor Sentiment: Tensions in the Middle East have intensified, leading to a rapid increase in global energy prices, with Brent crude surpassing $100 per barrel. This has reignited concerns about inflation and market stability, prompting investors to reassess their portfolios and adopt more defensive positions.
High-Yield Dividend Stocks: Companies like Chevron, Clorox, Energy Transfer, Global Net Lease, and Altria are highlighted as strong defensive plays due to their high dividend yields and stable demand, making them attractive options for investors seeking income amidst market volatility.
Chevron's Strong Performance: Chevron has significantly outperformed the broader market, with shares rising 24.6% year-to-date, benefiting from high oil prices and geopolitical tensions, positioning itself as a reliable dividend payer with a history of consistent increases.
Clorox and Consumer Staples: Clorox is noted for its stability in the consumer staples sector, maintaining strong demand for its products regardless of economic conditions. The company has a solid dividend history and is seen as a safe haven for investors looking for consistent returns.
See More
Top Data Center Power Stocks for Investors
- Surging Nuclear Demand: The projected surge in AI data center energy demand positions nuclear energy producers like Constellation Energy Group (CEG) and Duke Energy (DUK) as prime long-term investment choices, especially with U.S. government backing aiming to triple nuclear power generation.
- Electricity Consumption Surge: Goldman Sachs forecasts U.S. data center electricity consumption will soar from 4% in 2023 to 10% by 2030, translating to a jump from approximately 200 TWh to 500 TWh, creating a reliability gap that only a few companies can bridge.
- Midstream Infrastructure Opportunities: Energy Transfer (ET) is aggressively capitalizing on this trend, having signed long-term contracts for over 6 billion cubic feet per day of pipeline capacity in the past year, with over 40 data center connection requests, and is expected to achieve a 1.8x coverage ratio by 2025, offering a secure 7.2% yield.
- Xcel Energy Investment Plan: Xcel Energy (XEL) is planning a $60 billion base capital investment from 2026 to 2030, up from $45 billion for 2025 to 2029, which is expected to drive 9% annual ongoing EPS growth over the next several years while providing a secure nearly 3% dividend yield.
See More
Energy Transfer Stock Rallies 13%, Eyes $30 Target
- Accelerated Earnings Growth: Energy Transfer expects its adjusted EBITDA to rise over 10% this year, contrasting sharply with last year's 3.2% growth, indicating a significant enhancement in profitability following the completion of several major expansion projects, which boosts market confidence in its future performance.
- Project Backlog: The company has a substantial backlog of expansion projects, including the $2.7 billion Hugh Brinson Pipeline and the $5.6 billion Transwestern Pipeline expansion, which are expected to enter commercial service by 2030, further driving revenue growth and meeting the increasing demand for natural gas.
- Financial Flexibility: Energy Transfer possesses ample financial flexibility to fund both secured growth projects and potential acquisitions, providing it with additional growth opportunities, particularly in the context of accelerating natural gas demand.
- Price Target Outlook: Should Energy Transfer maintain a 10% annual growth rate, its unit price could reach $30 within five years, and if its valuation multiple expands, this target could be achieved even sooner, highlighting the potential for upward movement given its current low valuation relative to peers.
See More
Energy Midstream Stocks Offer Stable Income
- Energy Transition Potential: Energy Transfer (ET) currently boasts a 7.1% dividend yield and plans to increase distributions by 3% to 5% moving forward, leveraging its extensive midstream operations and stable fee-based business to provide long-term passive income for investors.
- Consistent Growth Performance: Enterprise Products Partners (EPD) has increased its distribution for 27 consecutive years, with a current yield of 5.9%, and is projected to achieve double-digit growth in adjusted EBITDA and cash flow by 2027, demonstrating its reliability and resilience in uncertain markets.
- High Yield Appeal: Western Midstream (WES) offers an 8.6% yield, ranking among the highest in the midstream sector, and while facing some short-term challenges, it expects a 3% increase in distributions in 2026 and maintains financial stability through a restructured fixed-fee agreement with Occidental.
- Strategic Diversification: Western Midstream is actively expanding its footprint in the produced water business through acquisitions like Aris Water Solutions and the Pathfinder Pipeline project, and despite the transition period, it is still poised for adjusted EBITDA growth, enhancing its competitive position in the market.
See More
U.S. Congress Revives Energy Permitting Reform Discussions
- Bipartisan Cooperation Resumes: Senate Environment and Public Works Committee Chair Shelley Moore Capito and ranking Democrat Sheldon Whitehouse are meeting again to discuss energy permitting reform, indicating a willingness for bipartisan collaboration on energy infrastructure development.
- Frequent Negotiations: Sources indicate that both parties will be communicating frequently this week, although no specific meeting times have been set, suggesting that the reform process is gaining momentum with committee staff actively negotiating.
- Increased Political Pressure: With energy prices soaring, lawmakers are under significant political pressure to reach a permitting reform agreement this year to lower energy costs and meet the rising demand for energy, particularly from power-hungry data centers.
- Complex Legislative Background: Despite the House passing the SPEED Act last year to streamline permitting, negotiations in the Senate are ongoing, and any final agreement may involve changes to longstanding environmental laws to expedite approvals for both renewable and traditional energy projects.
See More
Kinetik Energy's Dividend Growth Outlook Optimistic Amid Price Surge
- Dividend Yield Advantage: Kinetik currently boasts a 7.1% dividend yield, surpassing most peers, with expectations for a 3% to 5% increase this year, which will enhance investor appeal, particularly against the backdrop of rising energy prices.
- Strong Market Performance: The stock has surged 26% year-to-date due to soaring oil and gas prices driven by the Iran conflict, indicating increasing investor interest in energy stocks, which may propel future growth for the company.
- Acquisition Potential: Analysts are turning bullish on Kinetik, with Raymond James upgrading its rating to outperform in January, suggesting the company could become a takeover target for several midstream players, thereby increasing market attention.
- Improving Profitability: Kinetik's current dividend coverage ratio stands at 1.2, expected to rise to 1.5 by year-end, and with increasing cash flows, the dividend growth plan will be strengthened, potentially achieving a 7% growth by 2027.
See More
5 High-Dividend Stocks That May Provide Stability During Market Fluctuations
Market Volatility and Investor Sentiment: Tensions in the Middle East have intensified, leading to a rapid increase in global energy prices, with Brent crude surpassing $100 per barrel. This has reignited concerns about inflation and market stability, prompting investors to reassess their portfolios and adopt more defensive positions.
High-Yield Dividend Stocks: Companies like Chevron, Clorox, Energy Transfer, Global Net Lease, and Altria are highlighted as strong defensive plays due to their high dividend yields and stable demand, making them attractive options for investors seeking income amidst market volatility.
Chevron's Strong Performance: Chevron has significantly outperformed the broader market, with shares rising 24.6% year-to-date, benefiting from high oil prices and geopolitical tensions, positioning itself as a reliable dividend payer with a history of consistent increases.
Clorox and Consumer Staples: Clorox is noted for its stability in the consumer staples sector, maintaining strong demand for its products regardless of economic conditions. The company has a solid dividend history and is seen as a safe haven for investors looking for consistent returns.
See More
Top Data Center Power Stocks for Investors
- Surging Nuclear Demand: The projected surge in AI data center energy demand positions nuclear energy producers like Constellation Energy Group (CEG) and Duke Energy (DUK) as prime long-term investment choices, especially with U.S. government backing aiming to triple nuclear power generation.
- Electricity Consumption Surge: Goldman Sachs forecasts U.S. data center electricity consumption will soar from 4% in 2023 to 10% by 2030, translating to a jump from approximately 200 TWh to 500 TWh, creating a reliability gap that only a few companies can bridge.
- Midstream Infrastructure Opportunities: Energy Transfer (ET) is aggressively capitalizing on this trend, having signed long-term contracts for over 6 billion cubic feet per day of pipeline capacity in the past year, with over 40 data center connection requests, and is expected to achieve a 1.8x coverage ratio by 2025, offering a secure 7.2% yield.
- Xcel Energy Investment Plan: Xcel Energy (XEL) is planning a $60 billion base capital investment from 2026 to 2030, up from $45 billion for 2025 to 2029, which is expected to drive 9% annual ongoing EPS growth over the next several years while providing a secure nearly 3% dividend yield.
See More
Energy Transfer Stock Rallies 13%, Eyes $30 Target
- Accelerated Earnings Growth: Energy Transfer expects its adjusted EBITDA to rise over 10% this year, contrasting sharply with last year's 3.2% growth, indicating a significant enhancement in profitability following the completion of several major expansion projects, which boosts market confidence in its future performance.
- Project Backlog: The company has a substantial backlog of expansion projects, including the $2.7 billion Hugh Brinson Pipeline and the $5.6 billion Transwestern Pipeline expansion, which are expected to enter commercial service by 2030, further driving revenue growth and meeting the increasing demand for natural gas.
- Financial Flexibility: Energy Transfer possesses ample financial flexibility to fund both secured growth projects and potential acquisitions, providing it with additional growth opportunities, particularly in the context of accelerating natural gas demand.
- Price Target Outlook: Should Energy Transfer maintain a 10% annual growth rate, its unit price could reach $30 within five years, and if its valuation multiple expands, this target could be achieved even sooner, highlighting the potential for upward movement given its current low valuation relative to peers.
See More
