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Twenty-nine midstream energy companies were evaluated on a relative favorability matrix with factors representing yield, yield coverage, valuation, profitability, growth, and leverage. Based on this analysis, UGP, HESM, and USAC are the most favorable prospects in the midstream industry. I recommend investors who own TRP, GEL, or DKL carefully review their position, as these midstreams compare unfavorably to peers.

Income investing can be split into two broad categories: 1) high yield, low to no growth; 2) low yield, high growth. The high-yield-focused category has become a more challenging area to operate in (think of BDCs or CLO-based CEFs). Similarly, the income growth area has recently appreciated in value because of the great rotation dynamics, making the entry yields less compelling.

An overlooked opportunity is quietly delivering high current income and inflation-beating growth. I share an 8%+ yielding income machine with surprisingly strong growth. While other high-yield opportunities are wobbling in the current environment, this one may be built to endure.

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Plains All American Pipeline: 8%+ Yield, 10% Dividend Growth