While this earnings season has been a mixed bag for most equities, for midstream it’s been one of steady or increasing dividend announcements. Income investors don’t want to miss the opportunity within this sometimes-overlooked industry.
A Breakdown of Notable Midstream Dividend Increases
Western Midstream (WES) announced a substantial increase this quarter, raising its distribution 52% to $0.8750 per unit.
Targa Resources Corp. (TRGP) also announced a 50% dividend increase to $0.75 a share this quarter.
DT Midstream, Inc. (DTM) increased its dividend by 6.52% to $0.735 per share for the second quarter, which was paid in April.
Meanwhile, Sunoco LP (SUN) grew its distribution 4% this quarter to $0.8756 per unit. Sunoco completed the acquisition of MLP NuStar Energy earlier this month.
See also: KMI 1Q 2024: Increases Dividend, Maintains Growth Outlook
Capture Income and Opportunity Within Midstream
The Alerian MLP ETF (AMLP) seeks to track the performance of the Alerian MLP Infrastructure Index (AMZI). The index contains MLPs that derive most of their cash flow from midstream activities. Western Midstream and Sunoco are both current holdings within the fund at a 12.71% and 11.56% weight, respectively.
AMLP announced its second-quarter distribution of $0.94. It represents a 6.82% gain over Q1. The ETF has provided a 14.62% total return YTD and has a 7.2% trailing 12-month yield as of 5/8/24.
The Alerian Energy Infrastructure ETF (ENFR) seeks to track the performance of the Alerian Midstream Energy Select Index (AMEI). The index contains energy infrastructure MLPs and corporations within North America. DT Midstream and Targa Resources are both current holdings within the fund, at a 4.93% and 5.14% weight, respectively, as of 5/8/24.
ENFR announced a second-quarter distribution of $0.3412. The latest distribution is consistent with last quarter’s, generating stable income for investors. ENFR has generated a total return YTD of 13.37% with a 5.02% trailing 12-month yield as of 5/8/24.
For more news, information, and analysis, visit the Energy Infrastructure Channel.
vettafi.com owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for AMLP and ENFR, for which it receives an index licensing fee. However, AMLP and ENFR are not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of AMLP and ENFR.
