2 No-Brainer High-Yield Pipeline Stocks to Buy With $1,000 Right Now

Core Viewpoint - The master limited partnership (MLP) sector, particularly pipeline stocks, offers high-yielding investment opportunities at historically low valuations, with strong financial health and growth prospects [2]. Company Analysis: Energy Transfer - Energy Transfer (NYSE: ET) presents a unique investment opportunity, combining strong growth prospects with low valuation, trading at an enterprise value (EV)/EBITDA multiple of 7.5 times 2026 analyst EBITDA estimates, compared to the historical average of 13.7 times from 2011 to 2016 [3]. - The company offers a yield of 7.6% and plans to increase its distribution by 3% to 5% moving forward, supported by a solid balance sheet and a distribution coverage ratio of nearly 1.7 times based on distributable cash flow [4]. - Approximately 90% of Energy Transfer's operating income is derived from fee-based businesses, minimizing exposure to commodity price fluctuations, and the company has the highest percentage of take-or-pay contracts in its history, ensuring revenue stability [4]. - Energy Transfer is strategically positioned in the Permian Basin, with high-return growth projects like the Hugh Brinson and Desert Southwest Pipeline projects, and plans to invest up to $5.5 billion in growth capital expenditures this year [5].