Hess Midstream and Western Midstream Offer Yields Above 7%

โดย The Motley Fool·Read original
Summary · why it matters

Hess Midstream and Western Midstream offer dividend yields of 7.7% and 8.1%, respectively, outpacing the 4.9% yield of large-cap peer Enbridge. Hess Midstream, an $8.3 billion mid-cap operator in the Bakken and Three Forks shale regions, announced a distribution increase in January and expects at least 5% annual dividend growth through 2028, supported by free-cash-flow growth and minimum-volume commitments from Chevron, which accounted for 96% of its first-quarter revenue. Western Midstream, an $18.8 billion Permian Basin operator, has a five-year streak of dividend increases and forecast 2026 distributable cash flow of $1.85 billion to $2.05 billion, while its recent $1.6 billion acquisition of Brazos and $1.5 billion purchase of Aris Water Solutions strengthen its position in the Delaware Basin and water services. Both stocks have posted gains this year, with Hess Midstream up 16.2%.

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Energy▲ · 4 stocks
Hess Midstream Partners LP
HESM
▲ PositiveCapitalrelevance

Article highlights 7.7% dividend yield, distribution increase, and expected 5% annual dividend growth through 2028.

Western Midstream Partners LP
WES
▲ PositiveCapitalrelevance

Article highlights 8.1% dividend yield, five-year dividend growth streak, and strong forecast distributable cash flow.

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