3 Pipeline Stocks to Buy in March

Core Viewpoint - The energy midstream sector is highlighted as a stable investment option for generating passive income due to predictable cash flows from long-term transportation contracts, despite the volatility in oil and gas prices [1]. Group 1: Energy Transfer - Energy Transfer (NYSE: ET) offers an attractive yield of 7.1% and solid growth opportunities, with a distribution coverage ratio of nearly 1.8 times [2][3]. - The company is positioned well in the Permian Basin, which has some of the cheapest natural gas in the U.S., and is currently developing two large natural gas pipeline projects [3]. - Energy Transfer is trading at a forward enterprise value-to-EBITDA multiple of just 8.6 times, making it one of the cheapest stocks in the sector [4]. Group 2: Enterprise Products Partners - Enterprise Products Partners (NYSE: EPD) is recognized for its solid yield of 5.9% and a history of raising distributions for 27 consecutive years [6]. - The company maintains a conservative approach with a leverage ratio of just 3.3 times and a distribution coverage ratio of 1.8 times [7]. - By reducing its capital expenditure budget, Enterprise Products Partners is expected to generate ample discretionary cash flow for stock buybacks, debt reduction, and acquisitions [7].