4 High-Yield Pipeline Companies To Buy Now

Passive income investors looking to reach a bit further for higher yields without getting into trouble may wish to check out some of the names within the midstream energy scene.

Undoubtedly, the pipeline stocks have faced varied degrees of pressure in recent years. But despite the headwinds and turbulence, their dividends have held up and even grown by generous amounts in some situations. With fairly predictable, utility-like cash flow streams, the pipeline scene, I think, is a great place to look for investors who want more value, yield, and dividend growth prospects.

In this piece, we’ll have a look at four attractively valued pipeline stocks with well-covered, outsized dividend yields.

Energy Transfer

Energy Transfer (NYSE:ET) stock looks like a bargain after taking a big plunge off its January 2025 highs. The stock may have recovered close to half of the ground it lost in its more than 25% pullback, but it still looks to be worth a pick-up as the relief rally drags its feet. At the time of this writing, ET stock boasts a huge 7.47% dividend yield.

At 13.39 times trailing price-to-earnings (P/E), with a below-average 0.75 beta, ET stock stands out as an interesting pick for value-conscious income investors. In mid-May, Jim Cramer even gave his blessing to buy the pipeline stock. Shares have only gotten slightly cheaper.

TC Energy

TC Energy (NYSE:TRP) is a Canadian pipeline firm whose shares have really gained speed lately, rising by close to 28% in the past year. Though the dividend yield, currently at 4.8%, is dwarfed by the likes of Energy Transfer, I’d not give up on the name as it grows its U.S. gas network to fuel new AI data centers in America’s Midwest region.

Also, with a strong first quarter in the books and EBITDA milestones likely to be hit, I wouldn’t be too surprised if a big dividend hike is on the horizon. Either way, TC Energy is a smooth midstream operator that’d be most appealing to dividend growth investors looking for yield and appreciation potential.

Enbridge

Sticking with the Canadian pipeline firms, we have Enbridge (NYSE:ENB), which currently yields 5.9%. The stock has been even hotter than TRP in the past year, soaring close to 30%.

Recently, the $102.2 billion behemoth has been firing on all cylinders, and the best may be yet to come, with the company’s CEO reportedly “enthused” by the U.S. and Canadian governments’ hopes to build more pipeline projects.

As a long-time dividend grower with a stock that’s closing in on all-time highs, I consider ENB shares to be the timeliest of the batch going into the second half of 2025.

Enterprise Products

Finally, we have Enterprise Products Partners (NYSE:EDP), which has a 6.94% dividend yield and the lowest beta (0.65) of the four names mentioned in this piece.

The stock has done virtually nothing in the past five years, losing 1% of its value over the time span. The stock has only recently broken past the $30 multi-year resistance ceiling, but appears to be back on the decline towards the level that now appears to be a strong level of support.

Though less timely than the other pipeline stocks, I do view it as a great value play for investors seeking greater value and yield. The stock trades at just 11.6 times trailing P/E. With steady cash flows and a history of hiking the dividend (look for 4% dividend growth annually from here), deep-value hunters may wish to prefer this name over its peers.

The bottom line

The pipeline scene is rich with value and dividends as we head into the quieter season of trade. Though I wouldn’t be against picking up a few shares of all four, I do think that ENB shares offer the best mix of yield, momentum, and value. 

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