Motley Fool highlights Enbridge, Kinder Morgan and Enterprise Products Partners as income plays
The Motley Fool’s latest analysis identifies three major pipeline operators as long-term holdings for investors seeking steady income, though the stocks were excluded from its separate 'Top 10' list for immediate purchase.
The Motley Fool published an analysis on 19 May 2026 recommending Enbridge, Enterprise Products Partners, and Kinder Morgan as long-term income investments. The publication highlighted the companies’ stable cash flows, regulated rate structures, and histories of dividend growth as key factors supporting their appeal to investors seeking passive income streams.
Enbridge operates North America's largest crude oil and gas pipeline systems, transporting 30% of the continent's crude oil production and 20% of U.S. gas consumption. The Canadian firm derives more than 98% of its earnings from regulated assets or take-or-pay contracts, a model that has allowed it to achieve annual financial guidance for 20 consecutive years. It has raised its dividend for 31 straight years and expects to deliver around 5% annual cash flow per share growth starting next year.
Enterprise Products Partners, a U.S. midstream energy company with a diversified platform, operates an integrated network supporting the flow of natural gas, oil, and petrochemicals. Around 80% of its earnings come from fee-based sources, and the master limited partnership has increased its cash distribution for 27 straight years. The company maintains a conservative payout ratio of 57% of its cash flow from operations and holds the strongest balance sheet in the pipeline sector.
Kinder Morgan operates the largest U.S. natural gas transportation network, moving 40% of the country's gas production. Approximately 70% of its annual cash flows are locked in through take-or-pay contracts and hedges, with another 26% coming from fee-based agreements. The company expects to generate about $6.4 billion in cash this year, which easily covers its $2.7 billion in planned dividend payouts, and it has increased its dividend for nine years in a row.
While the stocks were recommended for their dividend income potential, The Motley Fool noted they were not included in its separate "Top 10" stock list for immediate purchase. The analysis underscored that these pipeline companies have commercially secured expansion projects, with Enbridge holding CA$40 billion in backlog and Kinder Morgan pursuing over $10 billion in additional projects, providing further fuel for future dividend growth.
