17 High-Yield Oil And Gas Pipeline Stocks (2024)

Oil& gas pipeline operators with highest dividend yields originally publishedat "long-term-investments.blogspot.com". Stocks from thebasic material sector could complement your portfolio and hedge it againststrong commodity price increases. One industry from the basic material sectorwith the highest yielding stocks is the oil and gas pipeline industry.

39 companiesare linked to the industry of which 37 pay dividends. Combined they have a totalmarket capitalization of USD 800 billion. Nearly 60 percent of the industryplayers have a yield over 5 percent and some have a really great dividendhistory. Thanks to the share gas boom it’s now possible that more pipelineinfrastructure is needed. The average industry yield amounts to 4.72% and theP/E ratio is 33.40.

Youshould have seen some interesting pipeline companies on my blog in the past. NormallyI am no fan of real estate companies because of the huge amounts of money they needfor growing. But pipeline operators look different. They pay huge dividends andhave the ability to grow dividends year over year. Their business model works butI don’t know how long. Pipeline operators are better than real estate stocks butit could be possible that the time brings some changes, especially when the energydemand and supply is changing.

Oiland gas pipeline stocks are real asset companies and they have a huge leverageon their balance sheet. The average industry long-term debt to equity ratio isover 123 percent but as long as revenue and cash flow streams are stable, thisfigure is still healthy.

Linked is a list of all higher capitalized oil and gas pipeline operators (over USD 2 billion market cap) with a yield over 5 percent. Seventeen stocksfulfilled these criteria of which eight have a current buy or betterrecommendation.

Here are my favorite stocks:

If you like to receive more news and regular dividendupdates, you should subscribe to my free E-Mail list.Alternative, you can follow meonFacebookorTwitter.

Boardwalk Pipeline Partners (NYSE:BWP) has a market capitalization of $6.38 billion. The company employs 1,200 people, generates revenue of $1.185 billion and has a net income of $306.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $726.10 million. The EBITDA margin is 61.27 percent (the operating margin is 39.98 percent and the net profit margin 25.82 percent).

Financial Analysis:The total debt represents 45.01 percent of the company’s assets and the total debt in relation to the equity amounts to 91.28 percent. Due to the financial situation, a return on equity of 7.43 percent was realized. Twelve trailing months earnings per share reached a value of $1.28. Last fiscal year, the company paid $2.13 in the form of dividends to shareholders.

Market Valuation:Here are the price ratios of the company: The P/E ratio is 21.67, the P/S ratio is 5.38 and the P/B ratio is finally 1.68. The dividend yield amounts to 7.70 percent and the beta ratio has a value of 0.24.

Long-Term Stock History Chart Of Boardwalk Pipeline Partners (BWP)

Long-Term Dividends History of Boardwalk Pipeline Partners (BWP)

Long-Term Dividend Yield History of Boardwalk Pipeline Partners (BWP)

Atlas Pipeline Partners (NYSE:APL) has a market capitalization of $2.12 billion. The company employs 350 people, generates revenue of $1.246 billion and has a net income of $68.06 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $193.70 million. The EBITDA margin is 15.55 percent (the operating margin is 4.97 percent and the net profit margin 5.46 percent).

Financial Analysis:The total debt represents 38.49 percent of the company’s assets and the total debt in relation to the equity amounts to 76.66 percent. Due to the financial situation, a return on equity of 3.76 percent was realized. Twelve trailing months earnings per share reached a value of $0.94. Last fiscal year, the company paid $2.26 in the form of dividends to shareholders.

Market Valuation:Here are the price ratios of the company: The P/E ratio is 35.03, the P/S ratio is 1.70 and the P/B ratio is finally 1.41. The dividend yield amounts to 7.06 percent and the beta ratio has a value of 1.56.

Long-Term Stock History Chart Of Atlas Pipeline Partners (APL)

Long-Term Dividends History of Atlas Pipeline Partners (APL)

Long-Term Dividend Yield History of Atlas Pipeline Partners (APL)

DCP Midstream Partners (NYSE:DPM) has a market capitalization of $3.24 billion. The company employs 334 people, generates revenue of $2.358 billion and has a net income of $139.60 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $260.30 million. The EBITDA margin is 11.04 percent (the operating margin is 6.42 percent and the net profit margin 5.92 percent).

Financial Analysis:The total debt represents 39.23 percent of the company’s assets and the total debt in relation to the equity amounts to 118.82 percent. Due to the financial situation, a return on equity of 11.84 percent was realized. Twelve trailing months earnings per share reached a value of $1.24. Last fiscal year, the company paid $2.52 in the form of dividends to shareholders.

Market Valuation:Here are the price ratios of the company: The P/E ratio is 36.02, the P/S ratio is 1.37 and the P/B ratio is finally 3.17. The dividend yield amounts to 6.16 percent and the beta ratio has a value of 1.14.

Long-Term Stock History Chart Of DCP Midstream Partners (DPM)

Long-Term Dividends History of DCP Midstream Partners (DPM)

Long-Term Dividend Yield History of DCP Midstream Partners (DPM)

Kinder Morgan Energy Partners (NYSE:KMP) has a market capitalization of $32.07 billion. The company employs 10,685 people, generates revenue of $8.642 billion and has a net income of $2.025 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.428 billion. The EBITDA margin is 39.67 percent (the operating margin is 27.08 percent and the net profit margin 23.43 percent).

Financial Analysis:The total debt represents 54.13 percent of the company’s assets and the total debt in relation to the equity amounts to 153.43 percent. Due to the financial situation, a return on equity of 7.34 percent was realized. Twelve trailing months earnings per share reached a value of $1.65. Last fiscal year, the company paid $4.98 in the form of dividends to shareholders.

Market Valuation:Here are the price ratios of the company: The P/E ratio is 52.21, the P/S ratio is 3.77 and the P/B ratio is finally 3.79. The dividend yield amounts to 6.00 percent and the beta ratio has a value of 0.40.

Long-Term Stock History Chart Of Kinder Morgan Energy Partners (KMP)

Long-Term Dividends History of Kinder Morgan Energy Partners (KMP)

Long-Term Dividend Yield History of Kinder Morgan Energy Partners (KMP)

Take a closer look at the full list of the best yielding oil and gas pipeline stocks. The average P/E ratio amounts to 32.24and forward P/E ratio is 22.35. The dividend yield has a value of 6.75 percent.Price to book ratio is 2.46 and price to sales ratio 4.39. The operating marginamounts to 18.45 percent and the beta ratio is 0.70. Stocks from the list havean average debt to equity ratio of 1.17.

Here is the full table withsome fundamentals (TTM):

17 Highest Dividend Paying Oil and Gas Pipeline Stocks (Click to enlarge)

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Related stockticker symbols:

NS, RGP, BWP,EEP, ETP, APL, BPL, CQP, NRGM, TCP, NGLS, DPM, CPNO, KMP, EPB, PBA, OKS

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*Ihave no positions in any stocks mentioned, and no plans to initiate anypositions within the next 72 hours. I receive no compensation to write aboutany specific stock, sector or theme.