The best ultra-yield midstream stocks just don’t pay big distributions and have high dividend yields — they also have predictable cash flows, solid balance sheets, and strong growth project pipelines that will help support higher payouts down the road.
Let’s look at three top pipeline stocks that fit this bill.
Energy Transfer (NYSE: ET) is a great example of a midstream stock that has gotten its act together by strengthening its balance sheet and boosting its distribution coverage ratio. As a result, it is now pushing ahead with a plethora of new growth projects.