Rising interest rates have made turning idle cash into passive income much easier. Unfortunately, many of the most attractive low-risk options, like T-bills and bank CDs, have short durations of less than a year. Because of that, they're not durable options for those seeking long-term passive income streams.

However, for those willing to take on a bit more risk, many attractive investment opportunities could turn $1,000 into a lucrative and lasting passive income stream. Among the more compelling options these days are pipeline stocks. They offer high-yielding dividends backed by long-term contracts and government-regulated rate structures. Because of that, they should be able to sustain and grow their payouts. Three top choices to consider are Oneok (OKE 2.25%), Kinder Morgan (KMI 3.46%), and Williams (WMB 2.48%).

1. A long history of durability

Oneok has a long history of paying dividends. The pipeline company has delivered a quarter-century of dividend stability and growth. It has increased its payout at a 12% compound annual rate since 2000, including by 2% earlier this year. Oneok's dividend currently yields 5.9%. That could turn $1,000 into $59 of annual passive income. For comparison, a $1,000 investment in an S&P 500 Index fund would only produce about $17 of yearly dividend income.

The company generates plenty of stable cash flow to cover that payout. In 2022, Oneok produced $2.9 billion of cash. That was enough to cover the company's nearly $1.7 billion outlay and fund expansion projects ($1.2 billion). As a result, Oneok ended the year with a 3.46 times debt-to-earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio, a strong level for a pipeline company. Those financial metrics suggest the dividend is on a solid foundation.

Oneok expects its expansion-related investments will grow its earnings and cash flow. The company plans to invest another $1.3 billion to $1.5 billion on expansion projects this year, which it can easily support with retained cash and its balance sheet flexibility. The company's growing cash flow should allow it to continue increasing its attractive dividend. 

2. Plenty of room to cover the payout

Kinder Morgan's dividend currently yields 6.3%. Because of that, it could turn $1,000 into $63 of annual passive income.

The company expects to produce $4.8 billion, or $2.13 per share, of cash flow this year. That's enough to cover its projected dividend payment of $1.13 per share (2% above last year's level and its sixth straight year of dividend increases) and its $2.1 billion expansion project slate with room to spare. This outlook has the company on track to end the year with a 4.0 times net debt-to-EBITDA ratio, below its 4.5 times target level. Because of that, it has lots of financial flexibility.

Kinder Morgan can use its financial capacity to sanction additional high-return expansion projects or make opportunistic acquisitions. For example, last year, the company spent $135 million to acquire North American Natural Resources (NANR) to expand its renewable natural gas (RNG) platform. The company will spend up to $175 million more to build additional RNG production capacity from NANR's existing assets. These investments should help grow its cash flow so it can continue increasing the payout. 

3. Building a foundation for future growth

Williams' dividend yields 6.1%. The natural gas pipeline company has paid a dividend every quarter since 1974. Meanwhile, it has grown its payout at a 6% compound annual rate since 2018. 

Williams generates plenty of cash to cover its dividend. It expects to produce 2.25 times the cash needed to fund its dividend this year at the midpoint of its guidance range. That will supply it with most of the money required to cover its planned expansion capital spending of $1.4 billion to $1.7 billion. As a result, the company expects to end this year with a solid 3.65 times leverage ratio.

The company is building toward a breakout year in 2025, when many of its current capital projects will come online. Those investments should help grow its earnings at a 5% to 7% annual rate over the long term. That should give the company the fuel to continue increasing its dividend over the next few years.

Solid options for more sustainable passive income

Pipeline companies produce lots of recurring cash flow, giving them the money to pay attractive dividends. Because of that, they can be great options for investors seeking to collect passive income. As the numbers show, Kinder Morgan, Oneok, and Williams can easily continue paying their big-time dividends. That makes them great options for those seeking to convert idle cash into cash flow.