Income investing offers a simple premise. First, invest a fixed amount of money into one or more assets. Second, sit back and collect the income as it rolls in. What isn’t always so simple, though, is selecting the best assets that can generate dependable income.
However, the energy sector is loaded with great ideas to achieve this goal. If you’ve got $10,000 to invest in September, here are three energy stocks to allocate equally to generate roughly $667 in annual income from your initial investment.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
1. MPLX LP
MPLX LP (NYSE: MPLX) is a master limited partnership (MLP) with large-scale midstream energy infrastructure and logistics operations. Its assets include pipelines that transport crude oil and refined products, an inland marine business, crude oil and natural gas gathering systems, natural gas processing facilities, storage caverns, and terminals.
This pipeline stock offers a distribution yield of 7.2%. An investment of $3,333 (one-third of the initial $10,000) in MPLX would generate annual income of around $240.
But is this ultra-high yield reliable? I think so. MPLX’s distribution coverage currently stands at a healthy 1.3x. The company has also increased its distribution for 13 consecutive years. MPLX will likely extend that streak.
September could be a good time to buy this stock. MPLX expects stronger growth in the second half of 2026, especially in the fourth quarter, as the midstream company brings its Belvieu Alternative Natural Gas Liquids (BANGL) pipeline, the Blackcomb pipeline, and the expansion of its Delaware sour gas treatment facility online.
2. Energy Transfer LP
Like MPLX, Energy Transfer LP (NYSE: ET) is a midstream MLP. It operates around 140,000 miles of pipelines, plus processing and storage facilities and terminals. Energy Transfer has midstream assets in all of the major U.S. producing basins.
Like MPLX, Energy Transfer also pays a juicy distribution. Its yield currently tops 6.3%. An initial investment of $3,333 would generate an annual income of around $210.
Energy Transfer recently announced its 19th consecutive distribution increase. The company is targeting annual distribution growth of between 3% and 5%. This goal appears to be attainable given Energy Transfer’s strong distribution coverage.
