Q1 2024 Midstream/MLP Dividends: Growth Story Intact

Summary

• On a year-over-year basis, nearly 95% of the broad Alerian Midstream Energy Index (AMNA) by weighting has grown their dividends. No AMNA constituent has cut its dividend since July 2021.
• Dividend growth enhances compelling yields for midstream/MLPs, which have consistently exceeded those of comparable income investments in recent years.
• The outlook for continued dividend growth is constructive, with several names providing long-term dividend growth guidance supported by expected free cash flow and EBITDA growth.

imaginima

The first quarter of 2024 showcased continued financial strength for energy infrastructure companies and their commitment to returning excess cash flow to investors.

Midstream/MLPs extended their dividend growth trend, and the long-term outlook for the midstream space remains constructive