Midstream Names Grow Dividends With Earnings Underway
This article was originally published on ETFTrends.com.
Several midstream companies have recently declared increases to their dividends.
Midstream companies are in the early stages of reporting earnings, but many have already announced quarter-over-quarter growth in their dividends for the fourth quarter of 2023. The midstream segment is known for offering generous income, making it a primary reason many advisors use MLPs and energy infrastructure companies in portfolios.
See more: “Why You Should Consider MLPs for Your Income Portfolio”
Midstream Dividends for the Fourth Quarter
Plains (PAA/PAGP) has announced the largest sequential percentage increase to its distribution across midstream names that have announced fourth-quarter payouts. The company has increased its distribution by 18.7% from the prior quarter to $0.3175 per unit.
Williams (WMB) has declared a fourth-quarter dividend of $0.4750 per share, representing a 6.2% sequential increase.
Meanwhile, EnLink (ENLC) has announced a distribution of $0.1325 per common unit for the fourth quarter, which represents an increase of approximately 6%.
ONEOK (OKE) has raised its quarterly dividend to $0.99 per share. This is a 3.7% increase from the third quarter.
Finally, Enterprise Products Partners LP (EPD) has declared a fourth-quarter distribution of $0.515 per unit, representing a 3% sequential increase.
See more: “Raymond James Analyst Shares Top Picks, Midstream Investment Opportunities”
Investors can get exposure to Plains, Williams, EnLink, ONEOK, and Enterprise with the Alerian Midstream Energy Select Index (AMEI). The index, tracked by the Alerian Energy Infrastructure ETF (ENFR), is a composite of North American energy infrastructure companies, including MLPs and C-corps. AMEI is yielding 6.31% as of January 29.
Meanwhile, the Alerian MLP Infrastructure Index (AMZI) is a capped, float-adjusted, cap-weighted composite of energy infrastructure MLPs. These are companies that earn most of their cash flow from midstream activities. The index, tracked by the Alerian MLP ETF (AMLP), provides exposure to Plains, EnLink, and Enterprise. AMZI is yielding 7.35% as of January 29.
For more news, information, and analysis, visit the Energy Infrastructure Channel.
vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for AMLP and ENFR, for which it receives an index licensing fee. However, AMLP and ENFR are not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of AMLP and ENFR.
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