Top 3 High-Yield Energy Dividend Stocks for Portfolio Stability

This article highlights three energy dividend stocks known for their reliable returns and dividend growth. Kinder Morgan (KMI) and Enterprise Products Partners (EPD) have consistently paid dividends for over a decade and have increased their payouts. Kinder Morgan offers a 5.81% yield, while Enterprise Products Partners offers a 7.21% yield. Both companies have maintained strong financial performance with billions in revenue and net income. Delek Logistics Partners (DKL) has a 10.82% yield and has increased its dividend for 11 years. All three companies provide essential energy infrastructure services and are solid choices for investors seeking dependable returns.

In the volatile world of energy prices, investors seeking dependable returns can find solace in the form of dividend-paying energy stocks. Three such companies that have proven their worth over time are Kinder Morgan (KMI), Enterprise Products Partners (EPD), and Delek Logistics Partners (DKL) [1].

First on our list is Kinder Morgan, a leading player in the midstream energy sector. Kinder Morgan's business model is built around connecting the upstream energy production to the downstream markets. The company operates an extensive network of pipelines, terminals, and storage facilities. Kinder Morgan's commitment to its shareholders is evident in its impressive 25-year streak of annual dividend increases [1]. As of now, Kinder Morgan offers investors a generous 5.81% yield, making it a valuable addition to any income-focused portfolio [2].

Another noteworthy energy dividend stock is Enterprise Products Partners. With a focus on the midstream energy sector, Enterprise Products Partners owns and operates a vast network of pipelines, storage facilities, and processing plants. The company's unique business model allows it to charge fees for the use of its assets, providing a steady stream of cash that can be used to pay dividends. Enterprise Products Partners has increased its dividend for 25 consecutive years, offering a substantial 7.21% yield to its investors [2].

Lastly, Delek Logistics Partners is a lesser-known but equally attractive energy dividend stock. This company specializes in the transportation and logistics of crude oil, natural gas, and refined products. Delek Logistics Partners has a proven track record of stability, having increased its dividend for 11 consecutive years [1]. The company offers a substantial 10.82% yield, making it an attractive option for investors seeking higher returns [2].

All three of these energy dividend stocks provide essential energy infrastructure services and offer investors a level of stability and predictability that can be difficult to find in the volatile energy sector. As you navigate the investment landscape, consider these three stocks as solid choices for adding dependable returns to your portfolio.

References:

[1] Fool.com. (2024, May 6). 3-Dividend Paying Energy Stocks to Buy Hand Over. https://www.fool.com/investing/2024/05/06/3-dividend-paying-energy-stocks-to-buy-hand-over/

[2] Yahoo Finance. (n.d.). Kinder Morgan Inc. (KMI), Enterprise Products Partners L.P. (EPD), Delek Logistics Partners LP (DKL). https://finance.yahoo.com/quote/KMI?p=KMI
https://finance.yahoo.com/quote/EPD?p=EPD
https://finance.yahoo.com/quote/DKL?p=DKL