Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Dividend stocks are gaining attention as investors look to diversify their portfolios amid market volatility and concerns over a potential AI bubble. A Hartford Funds study showed that companies paying dividends have historically outperformed non-dividend stocks during market downturns. Last month, someone asked a Reddit community of dividend investors about their income, investing strategies and portfolio ...

Core Insights - Energy Transfer (NYSE: ET) has shown limited stock performance over the past year, with a rise of less than 3% compared to the S&P 500's nearly 15% increase, although it delivered a total return of 10% with reinvested distributions [1][2] Company Overview - Energy Transfer operates over 140,000 miles of pipeline across 44 states, providing delivery, storage, and terminal services for natural gas, LNG, NGLs, crude oil, and refined products, including exports [4] - As a midstream company, Energy Transfer charges "tolls" to upstream extraction and downstream refining companies, generating stable revenue insulated from volatile commodity prices, though it faces risks from tariffs and interest rate fluctuations [5] Business Structure - The company is structured as a master limited partnership (MLP), combining tax advantages of a private partnership with the liquidity of a publicly traded stock, currently offering a high forward yield of 7.8%, significantly above the 10-year Treasury yield of 4% [6] Financial Health - MLPs assess profitability through adjusted EBITDA and earnings per public unit (EPU), with annual distributions needing to be covered by adjusted distributable cash flow (DCF) for sustainability [7] - Energy Transfer's "toll road" pipelines generate stable profits, and its distributable cash flow can adequately cover its distributions, suggesting limited downside potential due to low valuation and high yield [8]

Core Insights - Dividend investing provides a reliable path to passive income and long-term wealth building, especially during periods of stagnant or declining stock prices [1] - High-yield stocks, particularly those with yields above 5%, may indicate underlying issues such as declining earnings or high debt, necessitating a deeper analysis of sustainability and business strength [2] Realty Income (O) - Realty Income is a premier real estate investment trust (REIT) focused on single-tenant retail properties, leasing to essential retailers under long-term net leases, which ensures predictable revenue [3] - The company reported a strong occupancy rate of 98% in the first half of 2025 and plans to invest $5 billion in new acquisitions, with an anticipated AFFO of $4.24 to $4.28 per share for 2025 [4] - Realty Income has increased its dividend for 112 consecutive quarters, maintaining a payout ratio of around 75% of funds from operations, and offers a forward yield of 5.5% [5] - The stock trades at approximately 14 times adjusted funds from operations, below its historical average, making it attractive for income-focused investors [6] Enterprise Products Partners (EPD) - Enterprise Products Partners operates as a leading midstream energy partnership with a vast network of pipelines, storage terminals, and processing plants [7] - The majority of its revenue, around 82%, is derived from fixed-fee contracts, providing stability against commodity price fluctuations [7]

Core Insights - Dividend-paying stocks provide steady income during market volatility, appealing to income investors who prioritize consistent yields over speculative gains [1] - High-yield companies rated as "Strong Buy" by analysts indicate both safety and potential for growth [2] Company Overview - Energy Transfer LP is a midstream company established in 1996, headquartered in Dallas, Texas, focusing on the transportation, storage, and processing of raw energy materials like oil and gas [5] - The company is expanding its operations with the Desert Southwest Expansion Project, which aims to increase Permian gas capacity by 1.5 billion cubic feet per day (Bcf/d) by 2029, connecting key supply points in Texas and New Mexico [5] Financial Performance - Energy Transfer reported a 7% year-over-year decline in sales to $19.2 billion and a 10% decrease in net income to $1.2 billion, attributed to lower raw material prices [6] - Despite the recent financial downturn, the company is expected to recover due to its diversified asset base and long-term contracts [6] Dividend Information - The company offers a forward annual dividend of $1.32, resulting in an approximate yield of 8% [7] - A consensus among 16 analysts rates Energy Transfer's stock as a "Strong Buy," reflecting consistent positive sentiment over the past three months [7]

Core Insights - Enterprise Products Partners LP (EPD) is scheduled to report its third-quarter 2025 results on October 30, before market opening [1] - In the previous quarter, EPD's adjusted earnings were 66 cents per unit, surpassing the Zacks Consensus Estimate of 65 cents, driven by record natural gas processing and pipeline volumes [1] - EPD has beaten the Zacks Consensus Estimate in two of the last four quarters, with an average surprise of approximately 0.01% [1] Earnings Estimates - The Zacks Consensus Estimate for EPD's third-quarter earnings per unit is 67 cents, reflecting a 3.1% increase from the same period last year [2] - The estimated revenue for the quarter is $12.69 billion, indicating a 7.9% decline compared to the previous year's figures [2] Operational Factors - EPD operates a pipeline network exceeding 50,000 miles, transporting various energy products, and has over 300 million barrels of liquids storage capacity, which is expected to contribute to stable fee-based revenues [3] - The gross operating margin from the Natural Gas Pipelines & Services segment is estimated at $402.33 million, an increase from $349 million a year ago [4] Earnings Whispers - Current analysis suggests that EPD may not achieve an earnings beat this quarter, with an Earnings ESP of -3.23% and a Zacks Rank of 4 (Sell) [5] Comparative Stocks - BP is highlighted as a stock with potential for an earnings beat, with an Earnings ESP of +1.87% and a Zacks Rank of 3, set to report on November 4 [6] - ConocoPhillips and Antero Midstream Corporation are also mentioned as stocks with positive Earnings ESPs and Zacks Ranks of 3, with upcoming earnings reports [8][9]

Core Insights - Midstream energy stocks are involved in the processing, transportation, and storage of crude oil, natural gas, and natural gas liquids, operating in a sector less affected by spot pricing due to long-term contracts [1][5] - Master limited partnerships (MLPs) are highlighted as a strong investment option for energy exposure, offering substantial and dependable dividends, particularly from midstream companies [2][5] - A screening of midstream MLPs identified four top companies that provide high distributions to shareholders, emphasizing their appeal for income-focused investors [3] Industry Overview - Energy MLPs are attractive investments due to their structure and market position, typically offering annual distributions of 5% to 8% by distributing most cash flow to unitholders, thus providing a steady income stream [5] - MLPs benefit from stable, fee-based revenues linked to energy transportation, which mitigates risks associated with commodity price volatility [5] Company Spotlight - Cross America Partners L.P. has shown significant growth and is expected to continue this trend, offering a high dividend yield of 10.60% [6] - The company operates through two segments: wholesale distribution of motor fuel and retail sales at various sites, including convenience stores [7]

Core Insights - Energy Transfer (NYSE: ET) and Enterprise Products (NYSE: EPD) are among the top five midstream companies by market capitalization, demonstrating strong performance in the wellhead to water business model [1] Company Analysis - Energy Transfer and Enterprise Products have successfully executed their business models, indicating robust operational capabilities in the midstream sector [1] Investment Perspective - The article emphasizes the importance of evaluating potential equities for long-term investment, particularly in income-producing sectors such as energy and real estate [1]

Core Insights - Kinder Morgan Inc. (KMI) reported third-quarter 2025 adjusted earnings per share of 29 cents, meeting the Zacks Consensus Estimate and increasing from 25 cents year over year [1][9] - Total quarterly revenues reached $4.15 billion, surpassing the Zacks Consensus Estimate of $4.13 billion and up from $3.70 billion in the prior-year quarter [1][9] Business Performance - The in-line earnings and better-than-expected revenue were primarily driven by activities related to natural gas pipelines [2] - Natural Gas Pipelines segment saw adjusted earnings before depreciation, depletion, and amortization (EBDA) rise to $1.4 billion from $1.27 billion year over year, benefiting from higher transported and gathering volumes [3] - Product Pipelines segment's EBDA increased to $288 million from $276 million, attributed to higher diesel fuel volumes [4] - Terminals segment generated EBDA of $274 million, up from $267 million, with liquids utilization at 94.6% [4] - CO2 segment's EBDA decreased to $136 million from $160 million year over year [5] Operational Highlights - Total expenses related to operations and maintenance were $786 million, down from $790 million a year ago, while total operating costs increased to $3.08 billion from $2.68 billion [6] - KMI reported a project backlog of $9.3 billion at the end of the September quarter, with a significant portion related to natural gas projects [6] Financial Position - As of September 30, 2025, KMI had $71 million in cash and cash equivalents, with long-term debt amounting to $31.3 billion [7] Future Outlook - For the year, KMI projected net income attributable to the company at $2.8 billion and estimated adjusted EPS at $1.27, with a net debt-to-adjusted EBITDA ratio anticipated at 3.8x by the end of 2025 [8]

Core Insights - Kinder Morgan reported a 16% increase in earnings per share, driven by strong natural gas demand in the third quarter [1] - The company’s net profits rose modestly to $628 million from $625 million year-over-year [2] Company Performance - Kinder Morgan's business model focuses on owning midstream energy assets supported by long-term, take-or-pay contracts with creditworthy customers, ensuring reliable performance and sustained value [3] - The company has long-term contracts for transporting nearly 8 billion cubic feet of natural gas to LNG plants on the Gulf Coast, expected to reach 1 billion cubic feet by the end of 2028 [3] Market Outlook - Total demand for natural gas is projected to grow by 20% through 2030, primarily driven by LNG exports [4] - Kinder Morgan is exploring over 10 billion cubic feet per day of opportunities in the natural gas power generation sector, with about half of its backlog in this area [4] - Natural gas constitutes 90% of Kinder Morgan's order backlog, which stood at $9.3 billion at the end of September [4] Industry Trends - LNG is currently the fastest-growing segment of the U.S. energy industry, with significant capacity expansion anticipated due to increasing global demand [5] - The Energy Information Administration forecasts that North America's total LNG capacity could more than double by 2029, driven by new liquefaction plants in the U.S., Canada, and Mexico [5]

Core Thesis - ONEOK, Inc. is viewed positively due to its stable cash flows, long-term contracts, and operational resilience in the midstream energy sector [1][5] Company Overview - ONEOK, Inc. operates as a midstream energy company, focusing on gathering, processing, transporting, and storing natural gas, NGLs, crude oil, and refined products [2] - The company’s business model relies on long-term, fixed-fee contracts, which provide stability against commodity price fluctuations [2] Segment Analysis - The largest segment for ONEOK is NGLs, which processes raw mixtures into ethane, propane, and butane, but it has the lowest operating margin at approximately 18% due to domestic pricing and input costs [2] - The refined products and crude oil segment, enhanced by the Magellan Midstream acquisition, has margins near 40% and is characterized by heavy regulation and high replication costs, indicating a strong competitive advantage [3] Competitive Advantages - ONEOK benefits from significant barriers to entry due to its scale, extensive pipeline network, and capital-intensive infrastructure [4] - The company has a substantial amount of debt; however, it generates strong free cash flow and has a history of dividend growth, currently offering a dividend yield near 6% [4] Market Position and Outlook - The company is positioned well in a volatile energy sector, with ongoing infrastructure projects and growth in LNG exports, making it a stable, cash-generative business [5] - Despite some skepticism in the midstream sector, ONEOK's operational resilience and reliable free cash flow make it an attractive option for income-focused investors [5][7]