MLP / Midstream Companies that Increase Distribution every year for 5+ Years!


  • I Prefer Income maintains a database of 68 MLP / Midstream companies
  • In Spite of being in a very challenging industry, there are many MLP / Midstream companies with excellent records for increasing distributions
  • Introducing 23 MLP / Midstream companies that have increased distribution every year for 5+ years.

This article was written by Richard Hill / I Prefer Income!

Companies that are willing and able to increase their dividend every year are shareholder friendly companies that I pay attention to. When I added MLP / Midstream companies to the “I Prefer Income” database platform, I never realized that there are so many that have such a great history of increasing their dividend every year. To be specific, IPI tracks 68 MLP / Midstream companies. 23 have increased the dividend 5 and more years, including EPD that has a record of increasing their dividend 22 years in a row. And believe it or not, they have increased the dividend every quarter since 2004! That is a tough record to beat, especially when you consider how challenging the industry has been in over the years. It shows how important good management is that can meet every road-block put in front of them and to overcome by making great decisions with all of the resources they have available.

I have gathered the 23 companies that I classify as Dividend Diamonds and put them in Table 1. These are companies that have increased their dividend every year for 5+ years. (For those that are not aware, IPI has added a new program called Dividend Diamonds 25+). These are the companies that have increased their dividend 25+ years in a row. Over time, we will extend the number to include 10+ years and eventually 5+ years. Believe it or not, there are over 800 companies in that list!

Take a look at the companies in the table. They are sorted by the number of years they have increased their dividend. Shell Midstream is first with 5 years and EPD is at the bottom of the list with 22 years. There are several metrics to pay attention to and are grouped by areas of analysis: DIVIDENDS (Distributions), EARNINGS, PAYOUT and DEBT. All are important. Everyone has their favorite metrics. What are yours?

One metric may be somewhat confusing. It is Listed under Dividends. It is the “10 Yr Median Yield”. Keep in mind that if a company has only been in business or paid dividends for 5 years, the median will be based on those 5 years. I use this score to compare against the forward yield. You will note that virtually all the forward yields are much higher than the 10 Yr Median Yield. If you believe in the term of “return to the mean”, it would suggest that when you compare the forward yield for SHLX of 8% to the 10 Yr Median Yield of 3.6%, then you can see that the forward yield is historically high. If the stock price and yield return to the mean, the price will eventually increase, providing upside returns.

I can’t help but think there are some bargains in this group. The yields are historically high with many of the metrics being in good shape. With a good economy and good future for oil, gas, ngas and LNG, it would appear to provide some stocks that are worth considering.

Table of MLP / Midstream companies that have increased their distribution 5+ years.

(Table 1. Source, I Prefer Income)

The table provides a lot of information on these 23 stocks. However, it is best to login to the IPI database program and then enter the MLP / Midstream program to get much more data to review. It includes stock charts, payout graphs, 5 years of dividend and earnings data and an excellent Filter and Ranking program to help identify the stocks that meet your investment requirements.

Thanks for reading. I hope you take this opportunity to login and check out the 4 programs we have, including Preferred & ETD Securities, REITs, Dividend Diamonds 25+, and the MLP / Midstream program. If you are not a member, please consider joining. There are many benefits and the PRICE IS FREE. Here are 4 links that are available.

MLP / Midstream video: Click Here.

The I Prefer Income! Website: Click Here

Register for FREE Membership: Click Here

If you are a member, login to IPI Database: Click Here

Thanks for reading.

Disclosure. I own several stocks in the table including EPD, HEP, ET, BEP, FUN, PSXP, MPLX, HMLP, EVA, SHLX.