Three major midstream energy companies—Enterprise Products Partners, MPLX, and Kinder Morgan—are delivering strong dividend growth backed by robust cash flows and expanding infrastructure projects. Enterprise Products Partners reported record adjusted EBITDA and increased its distribution by 2.8%, supported by rising volumes and new projects. MPLX leads with 12.5% annual dividend growth, fueled by heavy investment in natural gas infrastructure and rising volumes. Kinder Morgan offers a stable 2% dividend increase with a strong project backlog focused on natural gas demand, appealing to investors preferring simpler tax treatment. These companies benefit from growing LNG exports, natural gas demand, and infrastructure expansion, making them attractive income investments in 2026.
Investors holding high-yield BDCs, REITs, and MLPs in taxable accounts face significant tax costs because their dividends are taxed as ordinary income rather than qualified dividends. For example, at a 24% federal tax bracket, $50,000 in dividend inc...
Certain high-yield investments like midstream MLPs and business development companies (BDCs) pay distributions taxed as ordinary income, which can lose about 24% to federal taxes for investors in the 24% tax bracket. Placing these investments inside ...
