Why are S&P 500 dividend yields low?

S&P 500 dividend yields are currently near their all-time low, making it harder to find attractive income from these stocks.

Which MLPs offer high dividend yields?

Energy Transfer (ET), Enterprise Products Partners (EPD), and MPLX (MPLX) are noted for their enticing dividend yields.

How can MLPs generate passive income?

MLPs like Energy Transfer use stable, fee-based structures to generate cash flow, supporting regular distributions to investors.

Home / Business and Economy / MLPs: Your Next Passive Income Powerhouse?

MLPs: Your Next Passive Income Powerhouse?

14 Dec, 2025

•

Summary

S&P 500 dividend yields are near all-time lows.
Master limited partnerships offer attractive yields.
Energy Transfer and Enterprise Products Partners are top picks.

MLPs: Your Next Passive Income Powerhouse?

As the S&P 500's dividend yield hovers near historic lows, investors seeking income face increasing difficulty. Fortunately, master limited partnerships (MLPs) are emerging as lucrative alternatives, offering substantially more attractive yields. Companies like Energy Transfer and Enterprise Products Partners stand out as prime examples, capable of generating significant passive income from relatively small investments.

Energy Transfer, a leading energy midstream company, benefits from a predominantly fee-based business model, ensuring stable cash flow. This stability supports its financial strength and allows for reinvestment in expansion projects, projected to drive annual payout growth of 3% to 5%. Its robust balance sheet is currently in its strongest position historically.

Enterprise Products Partners demonstrates an even more fortified financial standing, boasting the highest bond rating in its sector. With a low leverage ratio and consistent cash flow generation, it comfortably covers its distributions, reinforcing its appeal to income-seeking investors prioritizing financial stability and reliable payouts.