The Top High-Yield Pipeline Stocks to Buy With $1,000 in 2026

In an economic climate where traditional income-generating assets struggle to keep pace with inflation, high-yield pipeline stocks have emerged as a compelling option for investors seeking stable cash flows and long-term resilience. As we approach 2026, the energy infrastructure sector-anchored by master limited partnerships (MLPs) and C-corporations-offers a unique blend of defensive characteristics and growth potential. For those allocating $1,000 to build a passive-income portfolio, three names stand out: Energy Transfer (ET), Enterprise Products Partners (EPD), and Western Midstream (WES). Each offers distinct advantages in yield, operational scale, and strategic positioning, but their structural differences and risk profiles demand careful consideration.

Energy Transfer: Growth-Driven Infrastructure for the AI Era

Energy Transfer, with its 8.09% dividend yield, is a standout for investors prioritizing both income and capital appreciation. The company's 2026 capital expenditure plan of $5 billion underscores its aggressive growth strategy, including the Desert Southwest Pipeline and the Hugh Brinson Pipeline, which are critical to meeting surging natural gas demand. Notably, ET has capitalized on the AI infrastructure boom, securing contracts with data center operators like Oracle and Fermi to supply natural gas for cooling and power. This diversification into technology-driven energy use mitigates traditional commodity price volatility while aligning with long-term secular trends.

However, ET's MLP structure exposes it to risks tied to project execution and commodity price swings. Its forward EV/EBITDA of 7.6 times for 2026 is attractive compared to peers, but investors must monitor its leverage and the success of its large-scale projects. For those willing to tolerate moderate risk for higher growth, ET represents a compelling entry point.

Enterprise Products Partners: Conservative Stability in a Fee-Based Model

For investors prioritizing predictability, Enterprise Products Partners offers a 6.78% yield with a 27-year streak of distribution increases. Its fee-based business model-deriving revenue from transportation, storage, and processing fees-reduces exposure to commodity price fluctuations, making it a defensive play in uncertain markets. With a leverage ratio of 3.3 times and 2025 capital expenditures of $4.5 billion, EPD is poised to generate robust free cash flow as it completes major expansion projects.

EPD's corporate structure is evolving. Like many MLPs, it is evaluating a potential conversion to a C-corporation to simplify tax reporting and attract a broader investor base. While this shift could eliminate the need for K-1 forms, it may also introduce double taxation. For now, EPD's balance sheet strength and operational consistency make it a cornerstone for income-focused portfolios seeking resilience.

Western Midstream: High Yield With Strategic Expansion

Western Midstream's 9.21% yield is the highest among the three, but its appeal extends beyond income. The company's recent acquisition of Aris Water Solutions has expanded its produced water infrastructure, positioning it as a leader in the Delaware Basin. Record third-quarter 2025 results-$331.7 million in net income and $633.8 million in Adjusted EBITDA-highlight its operational strength. Additionally, its North Loving water pipeline, expected to begin operations in early 2027, will further diversify its asset base.

Yet, WES's MLP structure introduces complexities. Its reliance on K-1 tax forms and a concentrated asset portfolio in the Delaware Basin expose it to regional market risks and integration challenges from acquisitions. While its leverage ratio of 2.8 times is healthy, investors must weigh the potential for overleveraging against its high yield. For those comfortable with moderate risk, WES offers a compelling combination of income and growth.

Structural Contrasts and Portfolio Implications

The choice between MLPs and C-corporations hinges on tax preferences and risk tolerance. MLPs like ET and WES offer pass-through taxation, deferring capital gains until units are sold, but require meticulous tax reporting via K-1s. C-corporations, by contrast, simplify reporting with 1099 forms but face double taxation. Legislative changes in 2026 could further tilt the balance, as proposed tax rate reductions for C-corps may incentivize MLP conversions.

For a diversified portfolio, pairing ET's growth potential with EPD's stability and WES's high yield creates a balanced approach. ET and WES's exposure to AI infrastructure and water management, respectively, adds resilience to energy transitions, while EPD's fee-based model acts as a buffer against macroeconomic volatility.

Conclusion: Building a Resilient Income Portfolio

In 2026, the energy infrastructure sector remains a cornerstone for passive-income strategies. Energy Transfer, Enterprise Products Partners, and Western Midstream each offer unique value propositions, but their structural and operational differences demand tailored allocations. For $1,000, a diversified approach-allocating 40% to ET for growth, 30% to EPD for stability, and 30% to WES for yield-could optimize both income and long-term capital appreciation. As always, investors must remain vigilant about macroeconomic shifts and legislative changes that could reshape the MLP landscape.