Got $10,000 to Invest in This High-Yield, Midstream Stock? Here's What It Could Be Worth in 10 Years.
Key Points
Hess Midstream sports a hefty dividend yield -- recently 7.7%.
This midstream energy stock has been increasing its payout each quarter, too.
- 10 stocks we like better than Hess Midstream ›
If you're bullish on energy companies, perhaps due to the ongoing conflict with Iran, you might want to consider Hess Midstream LP (NYSE: HESM), which was spun off from Hess back in 2014. (Hess itself was bought by Chevron in 2025.)
A key point of interest for the stock is its dividend, which recently yielded a hefty 7.7%. Better still, the dividend has been increased quarterly for around nine years.
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How much might a $10,000 investment in the company be worth in 10 years? Well, here's how the stock has done recently:
|
Period |
Average Annual Total Return |
|---|---|
|
Year to date |
23.55% |
|
Past 1 year |
5.4% |
|
Past 3 years |
19.6% |
|
Past 5 years |
17.5% |
Source: YCharts, as of Sept. 3, 2026. Note: Total return includes dividends reinvested.
As an investor, you can't really know how fast the stock will grow over the coming decade. Using a conservative rate of return, a $10,000 investment:
- Growing at 8% annually, your stake would double to about $21,589.
- Growing at 10% annually, it would reach about $25,937.
- Growing at 12% annually, it would triple to about $31,058.
In its own words, Hess Midstream...
owns oil, gas and produced water handling assets that are primarily located in the Bakken and Three Forks Shale plays in the Williston Basin area of North Dakota, one of the most prolific crude oil gathering basins in North America. HESM conducts its business through three operating segments: gathering, processing and storage and terminaling and export.
One note on the tax side: the "LP" in Hess Midstream's name is a holdover from its history and doesn't carry the usual MLP tax treatment. A 2019 restructuring converted the public company into an "Up-C" entity treated as a corporation for federal tax purposes. For you, that's simpler than owning an MLP -- distributions show up on a Form 1099-DIV instead of a Schedule K-1, and there's no obstacle to holding the stock in an IRA or another tax-deferred account.
If you're intrigued by this fat dividend, take a closer look at Hess Midstream.
Should you buy stock in Hess Midstream right now?
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Selena Maranjian has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy.
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