5 Brilliant High-Yield Midstream Stocks to Buy Now and Hold for the Long Term

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›Midstream operators aren't flashy, but they crank out dependable cash flow, fund generous distribution payouts, and are set to benefit from surging demand for natural gas tied to artificial intelligence (AI), data centers, and liquid natural gas (LNG) exports.Here are five high-yield stocks with growing distributions that also have solid upside potential.Energy Transfer (NYSE: ET) has a hefty 7.4% yield that's well covered by its distributable cash flow -- operating cash flow minus maintenance capital expenditures (capex) -- thanks to about 90% of earnings before interest, taxes, depreciation, and amortization (EBITDA) coming from fee-based contracts. Many of those contracts are take-or-pay, locking in revenue regardless of volumes.Energy Transfer's footprint in the Permian Basin in Texas positions it to benefit directly from growing power demand and LNG exports. As such, the company is shifting into growth mode, bumping its capex from $3 billion in 2024 to $5 billion this year.It's seeing strong requests related to the data center boom and recently signed a supply agreement with developer Cloudburst for one of the data center projects it is developing in Texas. Also, the long-stalled Lake Charles LNG project looks like it may finally move forward, adding a growth driver.All in all, Energy Transfer is a high-yield name with strong tailwinds.Enterprise Products Partners (NYSE: EPD) has hiked its payout for 26 straight years. Its robust distribution and high yield aren't just safe; they are anchored by one of the steadiest business models and best balance sheets in the space. Roughly 85% of its cash flow comes from fee-based contracts, and many of those include take-or-pay terms with inflation escalators.Enterprise is run conservatively, but it also knows when to pursue expansion. The company currently has $7.6 billion in growth projects, with $6 billion of that set to go live this year. It has also boosted its spending on such projects, taking it from $3.9 billion last year to as much as $4.5 billion this year.If you want a sleep-safe high-yield stock, Enterprise is the right choice.Western Midstream Partners (NYSE: WES) offers a huge 9.4% yield and backs it up with a rock-solid balance sheet. Its leverage ratio sits below a multiple of 3, and its cash flows are anchored by cost-of-service contracts and minimum volume commitments. That makes for consistent results, even in choppy markets.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,259.75 -20.71 (-0.33%)Dow 3044,371.51 -279.13 (-0.63%)Nasdaq20,585.53 -45.14 (-0.22%)Russell 20002,234.83 -28.58 (-1.26%)VIX16.40 +0.62 (+3.93%)Gold3,364.00 +38.30 (+1.15%)PortfolioSign in to access your portfolioSign inTop gainersINKT MiNK Therapeutics, Inc. 64.17 +56.44 (+730.14%)NEGG Newegg Commerce, Inc. 49.24 +20.51 (+71.39%)LION Lionsgate Studios Corp. 7.00 +1.16 (+19.86%)NEXT NextDecade Corporation 10.77 +1.56 (+16.94%)VNET VNET Group, Inc. 7.95 +0.98 (+14.06%)Top losersDAVE Dave Inc. 202.66 -27.32 (-11.88%)BMNR Bitmine Immersion Technologies, Inc. 40.62 -5.39 (-11.71%)TMDX TransMedics Group, Inc. 112.46 -12.32 (-9.87%)QUBT Quantum Computing Inc. 17.43 -1.75 (-9.12%)IONQ IonQ, Inc. 41.81 -4.12 (-8.97%)Most activeNVDA NVIDIA Corporation 164.92 +0.82 (+0.50%)NIO NIO Inc. 3.9000 +0.2100 (+5.69%)SOFI SoFi Technologies, Inc. 21.20 +0.23 (+1.10%)AAL American Airlines Group Inc. 12.22 -0.72 (-5.56%)LCID Lucid Group, Inc. 2.2900 -0.0400 (-1.72%)Earnings eventsTrending tickersBTC-USD Bitcoin USD 117,790.93 -31.57 (-0.03%)BONK-USD Bonk USD 0.00 +0.00 (+14.12%)XLM-USD Stellar USD 0.42 +0.03 (+7.84%)MBGAF Mercedes-Benz Group AG 62.01 +0.01 (+0.02%)NBIS Nebius Group N.V. 44.30 -2.13 (-4.59%)Top economic events