Hold These 3 High-Yield Pipeline Stocks Forever and Let the Income Roll In

The words "exciting" and "pipelines" might not seem to go together very well. Pipelines just sit there, seemingly doing nothing, looking from the outside. On the inside, however, they transport the fuels that power our economy.

Another key thing that pipelines do is make money -- predictable, stable cash flows for their operators. And that translates to predictable, stable distributions for income investors. If that sounds exciting to you, hold these three high-yield pipeline stocks forever and let the income roll in.

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1. Enbridge: pipelines plus more

Enbridge (NYSE: ENB) ranks among the biggest pipeline operators. Its pipelines transport around 30% of the crude oil produced in North America and 40% of U.S. crude oil imports. The company's pipelines also transport roughly 20% of all natural gas consumed in the U.S.

This Calgary-based company is into more than just pipelines, though. Enbridge is the largest natural gas utility in North America, serving 7.1 million customers in the U.S. and Canada. It's also a top supplier of renewable energy, with contracts supporting major organizations including AT&T (NYSE: T), Meta Platforms (NASDAQ: META), and Toyota (NYSE: TM).

Enbridge has increased its dividend for 31 consecutive years. Its dividend yield currently tops 5%. The company expects to grow its dividend by up to 5% per year over the medium-term.

The dividend isn't the only thing about Enbridge that should grow. North American demand for liquid natural gas (LNG) and natural gas should continue to rise through the end of the decade and beyond. These growth prospects, combined with Enbridge's low-risk business model, make the hybrid pipeline/utility stock one of the most attractive options on the market for income investors.

2. Energy Transfer: AI-supported yield

Energy Transfer (NYSE: ET) is another pipeline stock that income investors should love. The limited partnership (LP) operates over 144,000 miles of pipeline spanning much of the U.S. It also owns related assets, including storage facilities, terminals, and natural gas processing plants.

Artificial intelligence (AI) continues to provide a strong tailwind for Energy Transfer. The company has signed multiple agreements to supply natural gas for AI data centers, including three operated by Oracle (NYSE: ORCL) and Nexus' hyperscale campus in central Texas.

You won't find much juicier yields than Energy Transfer's forward distribution yield of 7%. The company has ample cash flow to cover distributions. Management is targeting annual distribution growth of 3% to 5% over the long term.

AI isn't the only growth driver for the midstream company. Energy Transfer is also benefiting from rising overall demand for U.S. natural gas and NGLs, driven in part by the replacement of coal-fired plants with natural gas-fired plants.

3. Enterprise Products Partners: the midstream gold standard

In some ways, I've saved the best pipeline stock for last. Enterprise Products Partners (NYSE: EPD) is, in my opinion, the best-run midstream energy company. I'd even call it the midstream gold standard for investors.

For one thing, Enterprise boasts the highest credit rating in the midstream energy industry. It has an impressive history of generating durable cash flow. And nearly one-third of the LP's common units are owned by its managing partner's management team and affiliates.

Enterprise Products Partners offers a solid forward distribution yield of 5.9%. The company has increased its distribution for 27 consecutive years. This period included challenging times for the energy sector, such as the financial crisis of 2007 through 2009 and the COVID-19 pandemic of 2020 through 2022.

The same factors driving Enbridge's and Energy Transfer's growth are also helping Enterprise Products Partners. The LP is investing to capitalize on these opportunities, with approximately $5.3 billion in capital projects under construction. I predict that Enterprise will continue rewarding investors with attractive distributions for a long time to come.

Keith Speights has positions in Enbridge, Energy Transfer, Enterprise Products Partners, and Meta Platforms. The Motley Fool has positions in and recommends Enbridge, Meta Platforms, and Oracle. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.