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Build Passive Income: 3 Highest Dividend Pipeline Stocks Revealed [2024]

highest dividend pipeline stocks
Marko Marjanovic

Summary: In this guide, we cover 3 highest dividend pipeline stocks to consider checking out in 2024. The picks on our list are based not only on high dividend yields but also future growth potential and market presence. To invest in stocks we’ve selected, investors can open an account with an online stock brokerage such as eToro.

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What are pipeline stocks?

Pipeline stocks are shares of companies that own and operate pipelines used for transporting commodities such as oil, natural gas, refined petroleum products, etc. Pipeline stocks are typically seen as investments in the energy sector and can include both traditional corporations and master limited partnerships (MLPs).  Many investors are attracted to pipeline stocks due to their passive income potential, i.e., their dividend yields. 

3 highest dividend pipeline stocks

If you’re looking for promising growth prospects, we’ve got a list of the three highest dividend pipeline stocks you should consider this year:

  1. Energy Transfer (NYSE: ET);
  2. Enterprise Products Partners (NYSE: EPD);
  3. Enbridge (NYSE: ENB).

Feature note: All three stocks are available for purchase on eToro.

Highly Rated Stock Trading & Investing Platform

  • Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.

  • 0% commission on buying stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

1. Energy Transfer (ET)

Market cap (February 2024): ~$44 billion

Dividend yield (February 2024): ~9%

Energy Transfer is an energy enterprise specializing in the transportation and storage of natural gas, crude oil, and refined petroleum products. It operates an extensive pipeline network (114,00 miles) stretching across the United States and plays a pivotal role in supporting energy supply chains. Through recent strategic acquisitions (e.g., Enable Midstream in 2021) and ongoing expansion initiatives, Energy Transfer is surely poised for growth amid the dynamic changes in the energy sector, so it’s worth keeping an eye on.

Energy Transfer stock price today

2. Enterprise Products Partners (EPD)

Market cap (February 2024): ~$57 billion

Dividend yield (February 2024): ~7.95%

Enterprise Products Partners is one of the largest Master Limited Partnerships (MLPs) in the industry, boasting an expansive network of pipelines as well as storage, processing, manufacturing, and export facilities. The company boasts a remarkable track record of growth, evidenced by decades of distribution increases and clean credit rating within the midstream sector, which allows it to pursue further expansion projects.

Enterprise Products Partners stock price today

3. Enbridge (ENB)

Market cap (February 2024): ~$73 billion

Dividend yield (February 2024): ~7.75%

Enbridge is a Canadian company responsible for the movement of 30% of all oil produced in North America and approximately 20% of all gas consumed in the US. Recently, the company has diversified into renewable energy with offshore wind energy facilities in Europe. More impressively, though, it has a track record of almost three decades of consecutive annual dividend increases, which show no sign of stopping due to the company’s strong financial profile and multibillion-dollar project portfolio.

For more Canadian investments, be sure to check out our guide on the Canadian natural gas stocks to invest in 2024.

Enbridge stock price today


Where to buy dividend pipeline stocks

To buy the highest dividend pipeline stocks, such as those on our list above, you can open an online brokerage account. 

Our go-to broker is eToro, a fully licensed platform with millions of active users and numerous investment features, including:

  • Commission-free stock trading;
  • Access to over 2,000 stocks from 17 different exchanges;
  • The option to purchase fractional shares;
  • Charting tools;
  • A user-friendly platform that simplifies the trading experience. 

Highly Rated Stock Trading & Investing Platform

  • Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.

  • 0% commission on buying stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Pros and cons of buying high dividend pipeline stocks

Pros

Pros

  • Dividends: High dividend yields make the stocks on our list a compelling choice for investors seeking regular passive income;
  • Reliable cash flows: Pipeline companies tend to sign government contracts, meaning they have reliable cash flows;
  • Oil and gas are always in demand: Pipelines are essential to infrastructure since oil and gas are always in demand, no matter the economic conditions;
  • Diversification: Investing in some of the highest dividend pipeline stocks can provide you not only with passive income but also diversification within the energy sector.
Cons

Cons

  • Capital-intensive operations: Operating pipelines requires significant investments, potentially affecting the company’s cash flow;
  • Environmental concerns: Pipeline accidents can severely damage the reputation of a company and drive some environmentally conscious investors away;
  • Dividends could stop: Sometimes, companies are unable to continue paying dividends, in which case it could become possible that other aspects of your investment are not sufficient to help you realize your investment goals.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

FAQs about investing in high dividend pipeline stocks

What is the largest pipeline company in the US?

The largest pipeline company operating in the US is Enbridge, a Canadian company responsible for the movement of 20% of all oil in the US.

Are pipeline stocks a good passive income investment?

Yes, pipeline stocks can be a good passive income investment, as many companies in the industry offer attractive dividend yields and enjoy stable cash flows.

What are the best dividend oil pipeline or infrastructure stocks?

The highest dividend pipeline stocks right now include Energy Transfer (NYSE: ET), Enterprise Products Partners (NYSE: EPD), and Enbridge (NYSE: ENB).

Where can I invest in pipeline dividend stocks?

You can invest in pipeline dividend stocks through online investment platforms such as eToro.

What are the risks associated with investing in high dividend pipeline stocks?

Risks associated with investing in high dividend pipeline stocks include commodity price volatility, regulatory changes, environmental concerns, and operational risks.

How to buy high dividend pipeline stocks safely?

Failing to thoroughly research companies before investing is one of the most common investing mistakes. In addition, investors should exercise caution when chasing high dividend yields by ensuring the sustainability of dividends and considering factors like earnings growth and cash flow. 

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