The natural gas industry is booming in America. The U.S. consumed about 91.4 billion cubic feet per day (Bcf/d) in 2025, and experts believe this could increase by another 25 Bcf/d by 2030 due to rising power demands from data centers and more LNG (liquefied natural gas) exports.
Investors may want to consider owning pipeline stocks (also known as midstream stocks). These companies operate extensive networks of pipelines and storage facilities. In simple terms, they act as toll collectors, raking in fees on the gas, crude oil, and other materials flowing through their pipelines to export hubs and other destinations.
These two top midstream companies sit at the forefront of the U.S. natural-gas growth spurt, making them top dividend stocks to double up on right now. Here is the rundown on each.
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1. Energy Transfer
With over 140,000 miles of pipelines, Energy Transfer (ET 0.03%) is one of the most prominent midstream companies in all of North America. As a master limited partnership (MLP), Energy Transfer can afford to pay a large dividend, which yields more than 7% at its current share price. Just remember that investors must file a Schedule K-1 tax form because the Internal Revenue Service treats MLPs differently from regular corporations.
NYSE: ET
Key Data Points
Aside from that little hitch, there's a lot to like. The business is diversified across natural gas and oil and has several projects in the works to prepare for that natural gas growth on the horizon. It distributes roughly 50% to 60% of its cash flow each year to partners (shareholders), and management aims to grow the dividend by 3% to 5% annually. Investors looking for predictable, rising income can lean on the stock for its dependable high yield.
2. Kinder Morgan
Those who want to avoid the MLP structure or own even more of the U.S. pipeline industry can check out Kinder Morgan (KMI +1.95%). It was once structured as an MLP, but has since restructured itself into a traditional corporation. Kinder Morgan operates 79,000 miles of pipelines, which transport 40% of the total natural gas produced in the U.S.
Like Energy Transfer, the company is based in Texas, near key gas export sites, and is well positioned for a surge in export volumes over the coming years.
NYSE: KMI
Key Data Points
The stock doesn't yield as much as Energy Transfer, but it's still a strong 3.6% at the current share price. Kinder Morgan has raised its dividend for nine consecutive years, and most importantly, you can count on it. About 20% of the company's cash flow is all that is needed to cover the dividend.
Plus, only about 4% of cash flow has exposure to commodity prices, so the business is very steady. Investors should be able to buy and hold the stock, and still sleep well at night.
