Top Dividend Stocks to Buy Now: A Guide to Pipeline MLPs for Income Investors

If you’re seeking the best dividend stocks with consistently growing payouts, the energy midstream sector deserves your attention. Master limited partnerships (MLPs) in this space combine attractive current yields with solid long-term growth prospects. Two standout companies exemplify this opportunity: one prioritizes aggressive growth, while the other offers reliable, predictable income.

Why Pipeline MLPs Offer the Best Dividend Stock Opportunities

The midstream energy infrastructure space provides a unique advantage for income-focused investors. These companies operate essential pipelines and infrastructure that generate steady cash flows, which they distribute to shareholders. The regulatory framework and business model make these among the best dividend stocks to buy now, especially when you’re looking for both immediate income and appreciation potential.

The combination of high current yields—typically ranging from 6% to 7.4%—and annual payout growth creates an compelling case. Additionally, the resurgence of artificial intelligence infrastructure buildout is driving new demand for natural gas and energy transmission capacity, creating fresh investment opportunities for these pipeline operators.

Energy Transfer: Growth-Focused Dividend Investment

Energy Transfer (NYSE: ET) represents the growth-oriented option among top dividend stocks to buy. The company recently boosted its annual distribution to $1.34, translating to approximately a 7.4% forward yield—higher than many competing dividend investments.

What makes Energy Transfer particularly attractive is its position in the Permian Basin, a low-cost natural gas production region. As data centers expand across the country to power AI infrastructure, Energy Transfer has visibility into significant pipeline expansion projects. The company has committed to spending up to $5.5 billion in growth capital this year to capitalize on these opportunities.

The company’s dividend appears well-supported. Its distributable cash flow coverage ratio reached 1.7 times in the most recent quarter, indicating healthy support for current payouts. Management has also highlighted record-high take-or-pay contracts—arrangements that guarantee revenue regardless of volume—providing enhanced visibility for future cash flows.

Looking ahead, management plans to increase distributions by 3% to 5% annually, combining current income with meaningful appreciation over time.

Enterprise Products Partners: The Reliable Dividend Stock Choice

For investors prioritizing stability over aggressive growth, Enterprise Products Partners (NYSE: EPD) stands as the best dividend stock option in the midstream space. This company has demonstrated remarkable consistency: 27 consecutive years of distribution increases, a streak unmatched by competitors despite weathering multiple energy downturns and economic cycles.

Enterprise currently yields approximately 6.3%, with distributions growing at about 3% annually. The company’s disciplined approach is evident in its strong 1.8 times coverage ratio in the fourth quarter—indicating robust support for dividend payments through actual cash generation.

Unlike more growth-oriented peers, Enterprise is actually stepping back on expansion spending. Capital expenditure will decline to $2.5 to $2.9 billion this year from $4.4 billion previously. This strategic shift frees up significant discretionary cash flow that the company can deploy toward debt reduction, share buybacks, or strategic acquisitions.

The company projects modest growth near-term, but management expects adjusted EBITDA and free cash flow to expand by double digits in 2027 as recently completed infrastructure projects reach full capacity.

Comparing These Best Dividend Stocks for Your Portfolio

The choice between Energy Transfer and Enterprise Products Partners depends on your investment priorities:

If you prioritize growth and higher current yield: Energy Transfer’s 7.4% yield, substantial growth capital spending, and upside from AI-driven infrastructure demand make it attractive for growth-oriented income investors.

If you value stability and a proven track record: Enterprise Products Partners’ 27-year distribution streak, lower volatility, and upcoming free cash flow expansion offer peace of mind for conservative dividend investors.

Both represent legitimate answers to the question of which are the best dividend stocks to buy now. Energy Transfer offers capital appreciation alongside dividends, while Enterprise provides the security of one of the market’s most reliable dividend histories. Your selection should align with your risk tolerance and income needs over the next 3-5 years.