Plains All American Pipeline
Dividend Yield: 4.8%
As one of the largest MLPs in terms of their total midstream asset size — handling around 3.5 million barrels per day worth of crude oil and natural gas liquids (NGLs) — Plains All American Pipeline (PAA) has been a champion for portfolios for years.
Just how much of a champion? Since going public back in 1998, PAA has managed to raise its distribution by a whopping 167% to its current $2.40 per unit on an annualized basis.
And more could be in store. PAA has just agreed to swallow its former natural gas storage spinoff PAA Natural Gas Storage (PNG) in a $1.41 billion deal that will instantly be accretive to PAA shareholders. Meanwhile, Plains continues to build new capacity and crude-by-rail services in key refining markets like California.
All in all, that should help PAA reach management’s goal of boosting the distribution by 10% by November 2014.