Top High-Yield Midstream Energy Stocks for 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Source: Fool
- Midstream Business Advantage: Midstream energy companies generate revenue primarily through fees for the use of their infrastructure, such as pipelines and storage facilities, ensuring high transaction volumes even during low oil prices, which provides stable income for investors.
- Enbridge's Diversification: Enbridge offers a dividend yield of 5.6%, the lowest among the three, but its diversified portfolio includes oil and gas pipelines and clean energy, with a track record of increasing dividends for 30 consecutive years, indicating stability and long-term growth potential.
- Enterprise Products Partners' Steady Growth: With a dividend yield of 6.3%, Enterprise focuses solely on midstream oil and gas assets and has increased its dividends annually for 27 years, showcasing the benefits of conservative management, making it suitable for investors seeking reliable income.
- Energy Transfer's High Risk-High Reward: Energy Transfer boasts the highest dividend yield at 7.1%, although it cut its distribution in half in 2020 to strengthen its balance sheet, it has since recovered and is growing, with management projecting steady growth of 3% to 5% annually, appealing to more aggressive investors.
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Analyst Views on EPD
Wall Street analysts forecast EPD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EPD is 35.17 USD with a low forecast of 33.00 USD and a high forecast of 38.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
6 Buy
5 Hold
1 Sell
Moderate Buy
Current: 34.910
Low
33.00
Averages
35.17
High
38.00
Current: 34.910
Low
33.00
Averages
35.17
High
38.00
About EPD
Enterprise Products Partners L.P. is a provider of midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, refined products and petrochemicals. Its NGL Pipelines & Services segment includes natural gas processing and related NGL marketing activities, NGL pipelines, NGL fractionation facilities, NGL and related product storage facilities and NGL marine terminals. Its Crude Oil Pipelines & Services segment includes crude oil pipelines, crude oil storage and marine terminals and related crude oil marketing activities. Its Natural Gas Pipelines & Services segment includes natural gas pipeline systems that provide for the gathering, treating and transportation of natural gas. Its Petrochemical & Refined Products Services segment includes propylene production facilities; butane isomerization complex and related deisobutanizer (DIB) operations; octane enhancement, iBDH and HPIB production facilities; refined products pipelines, and others.
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.
Enterprise Products Partners Shows Strong Financial Performance
- Stable Dividend Yield: Enterprise Products Partners offers a 6.2% dividend yield and has increased its distributions for 28 consecutive years, demonstrating robust cash flow and strong financial health, appealing to income-focused investors.
- Strong Cash Flow: In fiscal 2025, the company reported record cash flow from operations of $8.7 billion and returned approximately $5 billion in capital to shareholders, indicating that its distributions are supported by operational performance rather than debt or accounting adjustments.
- Future Growth Potential: The company expects to generate $1 billion in discretionary free cash flow in 2026, with 50% to 60% earmarked for unit repurchases, which could further enhance distribution per unit for remaining investors and increase shareholder value.
- Project Investments and Export Plans: Enterprise Products Partners has about $4.8 billion in major projects underway, including natural gas gathering and processing projects in the Permian Basin, and plans to export 1.5 million barrels per day of natural gas liquids by 2026, positioning itself for future growth.
See More
Enterprise Products Partners Achieves 6.2% Distribution Yield
- Stable Distribution Yield: Enterprise Products Partners boasts a 6.2% distribution yield and has increased its distributions for 28 consecutive years, demonstrating strong operating cash flows and a resilient business model that maintains revenue stability even in tough industry conditions.
- Robust Cash Flow: In fiscal 2025, the company reported record operating cash flow of $8.7 billion and returned approximately $5 billion to shareholders, indicating that its distributions are fully supported by operational performance rather than debt or accounting adjustments.
- Future Growth Potential: The company expects to generate $1 billion in discretionary free cash flow in 2026, with 50% to 60% earmarked for unit repurchases, which could further enhance distribution per unit for remaining investors.
- Project Investment Plans: Enterprise Products has approximately $4.8 billion worth of major projects underway, including natural gas gathering and compression projects, with planned investments of $2.5 billion to $2.9 billion in 2026 and $2 billion to $2.5 billion in 2027 to support future cash flow growth.
See More
Analysis of High-Yield Stocks in the Energy Sector
- Energy Transfer's High Yield: Energy Transfer (ET) boasts a 9.2% dividend yield, having cut its distribution in 2020 due to the pandemic, but it has since recovered and plans a 3% to 5% annual growth, with up to $5.5 billion in investments planned by 2026 to support this growth.
- Enterprise's Stability: Enterprise Products Partners (EPD) has increased its distribution for 27 consecutive years, with a distributable cash flow covering its distribution at a comfortable 1.7x, indicating strong financial health and making it suitable for conservative investors.
- Enbridge's Diversification: Enbridge (ENB) offers a lower yield of 5.35% but has a diversified business model that includes regulated natural gas utilities and clean energy assets, appealing to investors concerned about the global energy transition.
- Investor Choices: Among these three companies, Energy Transfer is suited for aggressive investors, Enterprise Products is ideal for most income-focused investors, while Enbridge provides a diversified option for those worried about the ongoing global energy shift.
See More
Analysis of High-Yield Stocks in Energy Sector
- Energy Transfer Yield: Energy Transfer offers a 7.2% yield and plans for annual distribution growth of 3% to 5% by 2026; despite cutting its distribution in half during the pandemic in 2020, it has since recovered and surpassed pre-cut levels, indicating improved financial health and future growth potential.
- Enterprise Products Stability: Enterprise Products has increased its distribution for 27 consecutive years, currently yielding 6.2%, with a distributable cash flow covering its distribution by 1.7 times, showcasing financial robustness that appeals to conservative investors, with future growth expected to align with Energy Transfer.
- Enbridge Diversification: Enbridge offers a 5.6% yield and operates beyond the midstream sector, including regulated natural gas utilities and clean energy assets, positioning itself to adapt to changing global energy demands, making it suitable for investors focused on clean energy.
- Investment Recommendations: While Energy Transfer's high yield is attractive, its past distribution cut makes it suitable for aggressive investors; Enterprise Products is ideal for most income investors due to its stability, while Enbridge appeals to those concerned about the global energy transition due to its diversified business model.
See More
Enterprise Products Partners: An Underrated Energy Stock
- Stable Dividend Yield: Enterprise Products Partners (EPD) has increased its distributions for 28 consecutive years, currently offering a 6.2% yield, reflecting strong cash flow and financial stability that appeals to income-focused investors.
- Robust Cash Flow: In fiscal 2025, EPD reported record cash flow from operations of $8.7 billion and returned approximately $5 billion to shareholders, indicating that its distributions are funded by operational performance rather than debt, which boosts investor confidence.
- Future Growth Potential: The company expects to generate $1 billion in discretionary free cash flow in 2026, with 50% to 60% earmarked for unit repurchases, which could further enhance distribution per unit for remaining investors and increase shareholder value.
- Project Investment Plans: EPD is undertaking $4.8 billion worth of major projects, including natural gas gathering and processing, with plans to invest $2.5 billion to $2.9 billion in 2026 and $2 billion to $2.5 billion in 2027, supporting future cash flow growth.
See More
Enterprise Products Partners Returns to Growth in Q4
- Financial Recovery: Enterprise Products Partners reported a 4% increase in total gross operating profit to $2.74 billion in Q4, with adjusted EBITDA also rising by 4% to $2.71 billion, indicating a recovery in financial health after facing challenges in 2025, which boosts investor confidence.
- Strong Cash Flow: Distributable cash flow (DCF) rose by 3% to $2.22 billion, and despite a lackluster 2025, the company maintained a solid distribution coverage ratio, demonstrating its robust business model and commitment to shareholder returns.
- Capital Expenditure Adjustment: The company has reduced its capital expenditure budget for 2026 to a range of $2.5 billion to $2.9 billion from $4.4 billion in 2025, providing more flexibility for future discretionary free cash flow, with an estimated $1 billion expected in 2026.
- Future Growth Outlook: Enterprise forecasts adjusted EBITDA and cash flow growth at the lower end of 3% to 5% for 2026, but anticipates double-digit growth in 2027 as new projects come online, indicating significant performance improvement potential in the coming years.
See More
Enterprise Products Partners Shows Strong Financial Performance
- Stable Dividend Yield: Enterprise Products Partners offers a 6.2% dividend yield and has increased its distributions for 28 consecutive years, demonstrating robust cash flow and strong financial health, appealing to income-focused investors.
- Strong Cash Flow: In fiscal 2025, the company reported record cash flow from operations of $8.7 billion and returned approximately $5 billion in capital to shareholders, indicating that its distributions are supported by operational performance rather than debt or accounting adjustments.
- Future Growth Potential: The company expects to generate $1 billion in discretionary free cash flow in 2026, with 50% to 60% earmarked for unit repurchases, which could further enhance distribution per unit for remaining investors and increase shareholder value.
- Project Investments and Export Plans: Enterprise Products Partners has about $4.8 billion in major projects underway, including natural gas gathering and processing projects in the Permian Basin, and plans to export 1.5 million barrels per day of natural gas liquids by 2026, positioning itself for future growth.
See More
Enterprise Products Partners Achieves 6.2% Distribution Yield
- Stable Distribution Yield: Enterprise Products Partners boasts a 6.2% distribution yield and has increased its distributions for 28 consecutive years, demonstrating strong operating cash flows and a resilient business model that maintains revenue stability even in tough industry conditions.
- Robust Cash Flow: In fiscal 2025, the company reported record operating cash flow of $8.7 billion and returned approximately $5 billion to shareholders, indicating that its distributions are fully supported by operational performance rather than debt or accounting adjustments.
- Future Growth Potential: The company expects to generate $1 billion in discretionary free cash flow in 2026, with 50% to 60% earmarked for unit repurchases, which could further enhance distribution per unit for remaining investors.
- Project Investment Plans: Enterprise Products has approximately $4.8 billion worth of major projects underway, including natural gas gathering and compression projects, with planned investments of $2.5 billion to $2.9 billion in 2026 and $2 billion to $2.5 billion in 2027 to support future cash flow growth.
See More
Analysis of High-Yield Stocks in the Energy Sector
- Energy Transfer's High Yield: Energy Transfer (ET) boasts a 9.2% dividend yield, having cut its distribution in 2020 due to the pandemic, but it has since recovered and plans a 3% to 5% annual growth, with up to $5.5 billion in investments planned by 2026 to support this growth.
- Enterprise's Stability: Enterprise Products Partners (EPD) has increased its distribution for 27 consecutive years, with a distributable cash flow covering its distribution at a comfortable 1.7x, indicating strong financial health and making it suitable for conservative investors.
- Enbridge's Diversification: Enbridge (ENB) offers a lower yield of 5.35% but has a diversified business model that includes regulated natural gas utilities and clean energy assets, appealing to investors concerned about the global energy transition.
- Investor Choices: Among these three companies, Energy Transfer is suited for aggressive investors, Enterprise Products is ideal for most income-focused investors, while Enbridge provides a diversified option for those worried about the ongoing global energy shift.
See More
Analysis of High-Yield Stocks in Energy Sector
- Energy Transfer Yield: Energy Transfer offers a 7.2% yield and plans for annual distribution growth of 3% to 5% by 2026; despite cutting its distribution in half during the pandemic in 2020, it has since recovered and surpassed pre-cut levels, indicating improved financial health and future growth potential.
- Enterprise Products Stability: Enterprise Products has increased its distribution for 27 consecutive years, currently yielding 6.2%, with a distributable cash flow covering its distribution by 1.7 times, showcasing financial robustness that appeals to conservative investors, with future growth expected to align with Energy Transfer.
- Enbridge Diversification: Enbridge offers a 5.6% yield and operates beyond the midstream sector, including regulated natural gas utilities and clean energy assets, positioning itself to adapt to changing global energy demands, making it suitable for investors focused on clean energy.
- Investment Recommendations: While Energy Transfer's high yield is attractive, its past distribution cut makes it suitable for aggressive investors; Enterprise Products is ideal for most income investors due to its stability, while Enbridge appeals to those concerned about the global energy transition due to its diversified business model.
See More
Enterprise Products Partners: An Underrated Energy Stock
- Stable Dividend Yield: Enterprise Products Partners (EPD) has increased its distributions for 28 consecutive years, currently offering a 6.2% yield, reflecting strong cash flow and financial stability that appeals to income-focused investors.
- Robust Cash Flow: In fiscal 2025, EPD reported record cash flow from operations of $8.7 billion and returned approximately $5 billion to shareholders, indicating that its distributions are funded by operational performance rather than debt, which boosts investor confidence.
- Future Growth Potential: The company expects to generate $1 billion in discretionary free cash flow in 2026, with 50% to 60% earmarked for unit repurchases, which could further enhance distribution per unit for remaining investors and increase shareholder value.
- Project Investment Plans: EPD is undertaking $4.8 billion worth of major projects, including natural gas gathering and processing, with plans to invest $2.5 billion to $2.9 billion in 2026 and $2 billion to $2.5 billion in 2027, supporting future cash flow growth.
See More
Enterprise Products Partners Returns to Growth in Q4
- Financial Recovery: Enterprise Products Partners reported a 4% increase in total gross operating profit to $2.74 billion in Q4, with adjusted EBITDA also rising by 4% to $2.71 billion, indicating a recovery in financial health after facing challenges in 2025, which boosts investor confidence.
- Strong Cash Flow: Distributable cash flow (DCF) rose by 3% to $2.22 billion, and despite a lackluster 2025, the company maintained a solid distribution coverage ratio, demonstrating its robust business model and commitment to shareholder returns.
- Capital Expenditure Adjustment: The company has reduced its capital expenditure budget for 2026 to a range of $2.5 billion to $2.9 billion from $4.4 billion in 2025, providing more flexibility for future discretionary free cash flow, with an estimated $1 billion expected in 2026.
- Future Growth Outlook: Enterprise forecasts adjusted EBITDA and cash flow growth at the lower end of 3% to 5% for 2026, but anticipates double-digit growth in 2027 as new projects come online, indicating significant performance improvement potential in the coming years.
See More
