Core Viewpoint - The article highlights three midstream energy stocks as potential investments for generating passive income, emphasizing their reliable cash flow and growth prospects. Group 1: Enbridge - Enbridge operates 54,000 miles of pipelines across North America and is the largest midstream energy company by market cap, also becoming the largest natural gas utility in North America after acquisitions in 2023 [2] - The forward dividend yield for Enbridge is currently 6%, with an initial investment of 1,500 in passive income this year, and the company has increased its dividend for 30 consecutive years [3][4] - Enbridge has seen a solid gain of around 25% over the last 12 months, driven by anticipated growth in natural gas demand and data center power requirements [4] Group 2: Energy Transfer - Energy Transfer owns over 130,000 miles of pipelines and operates processing, storage, and terminal facilities in the U.S. [5] - The company has grown through acquisitions, including Lotus Midstream and Crestwood Equity Partners in 2023, and WTG in 2024, expanding its Permian Basin operations [6] - Energy Transfer's forward yield is 6.51%, translating to nearly 25,000 investment, with expected distribution increases of 3% to 5% per year [7][8] - The company has rewarded investors with a 37% gain over the past 12 months, supported by capital projects aimed at boosting processing capacity [8] Group 3: Enterprise Products Partners - Enterprise Products Partners operates over 50,000 miles of pipelines and owns significant midstream assets, including storage and processing facilities [9] - The company has strong insider ownership and an A- credit rating, indicating low default risk, and has been able to grow adjusted cash flow from operations without significant asset sales [10] - The forward distribution yield is 6.4%, with an initial investment of 1,600 in passive income, contributing to a total of approximately $4,728 from the three stocks [11][12] - Enterprise has seen a 22% increase in unit price over the last 12 months, with ongoing capital projects expected to fuel future growth [12]
Want $4,700 in Passive Income? Invest $25,000 in Each of These 3 Midstream Energy Stocks.