Energy Transfer and Enterprise Products Partners: High-Yield Dividend Stocks With Growth Potential

Energy Transfer and Enterprise Products Partners are two pipeline master limited partnerships (MLPs) highlighted for long-term dividend investors, combining high current yields with distribution growth supported by cash-flow coverage.

Energy Transfer: higher yield with distribution growth

Energy Transfer recently increased its distribution by more than 3% year over year to an annual payout of $1.34. That translates to about a 7.4% forward yield.

The article notes that Energy Transfer’s distribution is supported by distributable cash flow, citing a 1.7 times coverage ratio last quarter. It also points to balance-sheet improvements and states the company has the highest percentage of take-or-pay contracts in its history, which is described as providing strong visibility.

Growth opportunities are linked to Energy Transfer’s position in the Permian Basin, described as a low-cost source of natural gas, and to demand tied to the buildout of artificial intelligence (AI) data centers. The company has announced plans to spend up to $5.5 billion in growth capex this year. It also plans to continue increasing its distribution by 3% to 5% annually going forward.

Enterprise Products Partners: steady dividend track record

Enterprise Products Partners is described as a long-term dividend holding with solid growth prospects. The MLP increased its distribution for the 27th straight year in 2025.

The stock currently yields about 6.3%, while the company has been growing its payout at roughly a 3% annual pace. The article says the distribution is well supported, with a 1.8 times coverage ratio in the fourth quarter.

Capex ramp-down and cash-flow use

Unlike Energy Transfer, Enterprise Products Partners is expected to reduce growth capex this year. The article cites a capex range of $2.5 billion to $2.9 billion, down from $4.4 billion in 2025. The resulting discretionary cash flow is described as available to pay down debt, buy back stock, or make acquisitions.

Expected cash-flow growth timing

While the article characterizes this year’s growth as modest, it states that adjusted EBITDA and cash flow are expected to grow by double digits in 2027 as new projects ramp up.

Bottom line

Energy Transfer is presented as a high-yield dividend option with distribution growth plans of 3% to 5% annually and up to $5.5 billion in growth capex this year. Enterprise Products Partners is presented as a “sleep-well-at-night” dividend stock supported by a long record of annual increases, with capex expected to decline to $2.5 billion to $2.9 billion and stronger double-digit adjusted EBITDA and cash-flow growth projected for 2027.