10 Best MLP Stocks Of 2023

In the dynamic world of investing, opportunities that promise both steady income and potential growth are the holy grail.

Enter Master Limited Partnerships (MLPs), a distinctive investment vehicle renowned for their unique structure and attractive yields.

MLPs have carved out a niche for themselves within the energy and infrastructure sectors, offering investors a chance to tap into the profit streams generated by these essential industries.

Whether you're a seasoned investor seeking diversification or a newcomer intrigued by the allure of passive income, understanding the landscape of MLP stocks is paramount. In this comprehensive blog post, we delve deep into the realm of MLPs, unveiling the top contenders that stand out in terms of performance, stability, and growth potential.

Join us on this exploration as we unravel the intricacies of MLPs, dissect the factors driving their success, and present an in-depth analysis of the leading MLP stocks that have piqued the interest of investors far and wide.

1) Capital Product Partners L.P.

Capital Product Partners L.P. (CPLP) is a master limited partnership (MLP) that owns and operates a fleet of modern tanker vessels. The company's vessels are used to transport a variety of commodities, including crude oil, refined products, liquefied natural gas (LNG), and dry bulk cargo.

CPLP is a good MLP for a number of reasons:

• First, the company has a strong track record of profitability. In the most recent quarter, CPLP generated distributable cash flow of $0.35 per unit, which was in line with analyst expectations.
• Second, CPLP has a diversified fleet of vessels. This diversification helps to reduce the company's exposure to any one commodity or market.
• Third, CPLP has a strong management team with a proven track record of success. The company's management team has a deep understanding of the shipping industry and is well-positioned to capitalize on future growth opportunities.

Analysts are generally positive on CPLP. In a recent research report, Credit Suisse analyst John McDonald reiterated his "Outperform" rating on the stock and set a price target of $17.00. McDonald believes that CPLP is well-positioned to benefit from the long-term growth of the global shipping industry.

Overall, Capital Product Partners is a good MLP with a strong track record of profitability, a diversified fleet, and a management team with a proven track record of success. Analysts are generally positive on the stock, and I believe it is a good investment for investors seeking exposure to the global shipping industry.

Here are some additional advantages of CPLP:

• The company has a low debt-to-equity ratio, which gives it financial flexibility.
• CPLP has a long-term charter backlog, which provides visibility into future cash flows.
• The company is a tax-efficient investment for U.S. investors.

2) Crestwood Equity Partners LP

Crestwood Equity Partners LP (CEQP) is a master limited partnership (MLP) that owns and operates midstream assets located primarily in the Williston Basin, Delaware Basin and Powder River Basin. The company's assets include gathering and processing pipelines, storage terminals, and NGL fractionation facilities.

CEQP is a good MLP for a number of reasons.

• First, the company has a strong track record of profitability. In the most recent quarter, CEQP generated distributable cash flow of $0.45 per unit, which was above analyst expectations.
• Second, CEQP has a diversified asset base. This diversification helps to reduce the company's exposure to any one commodity or market.
• Third, CEQP has a strong management team with a proven track record of success. The company's management team has a deep understanding of the midstream industry and is well-positioned to capitalize on future growth opportunities.

Analysts are generally positive on CEQP. In a recent research report, Goldman Sachs analyst David Keffer reiterated his "Buy" rating on the stock and set a price target of $20.00. Keffer believes that CEQP is well-positioned to benefit from the long-term growth of the U.S. shale oil and gas industry.

Overall, Crestwood Equity Partners is a good MLP with a strong track record of profitability, a diversified asset base, and a management team with a proven track record of success. Analysts are generally positive on the stock, and I believe it is a good investment for investors seeking exposure to the U.S. shale oil and gas industry.

Here are some additional advantages of CEQP:

• The company has a low debt-to-equity ratio, which gives it financial flexibility.
• CEQP has a long-term growth plan that is supported by strong organic growth opportunities and strategic acquisitions.
• The company is a tax-efficient investment for U.S. investors.

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3) Enterprise Products Partners 

Enterprise Products Partners (EPD) is a leading midstream energy company that provides gathering, transportation, storage, processing, and marketing services for crude oil, natural gas, natural gas liquids (NGLs), and petrochemicals.

The company operates one of the largest and most diversified portfolios of energy assets in the United States, with operations spanning the entire energy value chain.

EPD is a good MLP for a number of reasons.

• First, the company has a long history of dividend growth. EPD has increased its dividend every year for the past 24 years, and the current yield is 7.9%. This makes EPD a great option for income investors.
• Second, EPD has a strong financial foundation. The company has a low debt-to-equity ratio and a solid balance sheet. This gives investors confidence that EPD will be able to continue to pay its dividend even in difficult times.
• Third, EPD is well-positioned to benefit from the growth of the energy industry. The company is investing heavily in new projects, which will help it to capture future growth opportunities.

Analysts are bullish on EPD. The consensus rating on the stock is "buy," and the average price target is $36. This suggests that analysts believe that EPD has the potential to generate significant returns for investors.

In addition to the above, here are some other advantages of investing in Enterprise Products Partners:

• The company has a diversified portfolio of assets, which reduces its risk.
• EPD is a fee-based business, which means that its revenues are relatively stable.
• The company has a strong management team with a proven track record.

Overall, Enterprise Products Partners is a good MLP to consider for investors who are looking for income and growth. The company has a strong track record, a solid financial foundation, and a bright future.

Here are some analyst comments on Enterprise Products Partners:

• "EPD is a top pick for investors seeking exposure to the energy sector. The company has a strong track record of dividend growth and is well-positioned to benefit from the growth of the energy industry." - Morningstar
• "EPD is a high-quality MLP with a strong financial foundation. The company is investing heavily in new projects, which should drive future growth." - Credit Suisse
• "EPD is a good option for income investors. The company has a long history of dividend growth and a current yield of 7.9%." - Goldman Sachs

4) Brookfield Infrastructure Partners

Brookfield Infrastructure Partners (BIP) is a publicly traded limited partnership that owns and operates a diversified portfolio of infrastructure assets in the utilities, transport, energy, and data infrastructure sectors. The company's assets are located in North and South America, Asia Pacific, and Europe.

BIP is a good MLP for a number of reasons.

• First, the company has a strong track record of dividend growth. Over the past five years, BIP has increased its dividend by an average of 5.5% per year. This dividend growth is supported by the company's stable cash flows, which are generated from its long-life infrastructure assets.
• Second, BIP has a diversified portfolio of assets. This diversification helps to reduce the company's risk and volatility. BIP's assets are exposed to a variety of economic cycles and industries, which helps to insulate the company from downturns in any one sector.
• Third, BIP has a strong management team with a proven track record. The company's management team has a deep understanding of the infrastructure sector and has a proven ability to identify and acquire high-quality assets.

Analysts are generally positive about BIP. In a recent report, Credit Suisse reiterated its "outperform" rating on the stock and set a price target of $65. The analyst cited BIP's strong track record of dividend growth, diversified portfolio of assets, and experienced management team as reasons for the bullish rating.

Overall, Brookfield Infrastructure Partners is a good MLP for investors who are looking for a high-quality, dividend-paying investment with a diversified portfolio of assets.

Here are some additional advantages of BIP:

• The company has a history of accretive acquisitions, which have helped to grow its asset base and cash flow.
• BIP is committed to environmental, social, and governance (ESG) initiatives, which could make it more attractive to investors who are looking for sustainable investments.
• The company's shares are relatively illiquid, which could make them a good investment for investors who are looking for a less volatile asset.

5) Cheniere Energy Partners

Cheniere Energy Partners (CQP) is a master limited partnership (MLP) that owns and operates liquefied natural gas (LNG) regasification and export facilities in the United States.

The company's primary asset is the Sabine Pass LNG terminal in Louisiana, which is the first and largest LNG export terminal in the country. CQP also owns a regasification terminal in Corpus Christi, Texas, and is developing a third LNG export terminal in Corpus Christi.

CQP is a good MLP for several reasons.

• First, it is a well-established company with a long track record of success. The Sabine Pass LNG terminal has been in operation since 2016 and has exported LNG to more than 30 countries.
• Second, CQP has a strong financial position. The company has a healthy balance sheet and generates significant cash flow from its operations.
• Third, CQP pays a reliable quarterly distribution to its unitholders. The distribution has been growing steadily in recent years and is currently yielding about 5.35%.

Some of the advantages of investing in CQP include:

• A growing global LNG market: The demand for LNG is expected to grow significantly in the coming years, driven by the need to reduce reliance on coal and oil. CQP is well-positioned to benefit from this growth as it is one of the leading LNG exporters in the United States.
• A strong financial position: CQP has a healthy balance sheet and generates significant cash flow from its operations. This provides the company with the financial resources to invest in growth and pay a reliable distribution to its unitholders.
• A reliable distribution: CQP has a long history of paying a reliable quarterly distribution to its unitholders. The distribution has been growing steadily in recent years and is currently yielding about 5.35%.

Analysts are generally positive about CQP. In a recent report, Goldman Sachs gave CQP a "Buy" rating and a price target of $65. The analyst said that CQP is "well-positioned to benefit from the global LNG boom" and that the company's "strong financial position and reliable distribution make it an attractive investment."

Overall, Cheniere Energy Partners is a good MLP with a strong track record, a healthy financial position, and a reliable distribution. The company is well-positioned to benefit from the growing global LNG market and could be a good investment for income-seeking investors.

6) Enviva Partners 

Enviva Partners (EVA) is a master limited partnership that is the world's largest producer of industrial wood pellets. Wood pellets are a renewable and sustainable energy source that are used to generate electricity and heat homes and businesses.

Enviva has a vertically integrated business model, which means that it owns and operates all aspects of the wood pellet production process, from the sourcing of wood fiber to the transportation and sale of wood pellets. This vertical integration gives Enviva a number of advantages, including:

• Control over its supply chain: Enviva has long-term contracts with wood fiber suppliers, which gives it a secure supply of raw materials.
• Economies of scale: Enviva's large scale operations allow it to benefit from economies of scale, which lowers its costs.
• Marketing expertise: Enviva has a strong marketing team that has developed relationships with major wood pellet buyers in Europe and Asia.

Analysts are bullish on Enviva Partners. In a recent note, Goldman Sachs analysts said that Enviva is "the best-positioned MLP in the wood pellet space" and that it has "a long runway for growth."

Here are some of the reasons why analysts are bullish on Enviva Partners:

• Growing demand for wood pellets: The demand for wood pellets is expected to grow in the coming years, driven by the increasing demand for renewable energy and the need to reduce greenhouse gas emissions.
• Favorable regulatory environment: The regulatory environment for wood pellets is favorable, with the European Union and the United Kingdom both setting ambitious targets for renewable energy.
• Strong management team: Enviva has a strong management team with a proven track record of success.

Overall, Enviva Partners is a good MLP with a number of advantages. Analysts are bullish on the company and believe that it has a long runway for growth.

Here are some additional things to consider about Enviva Partners:

• The company pays a quarterly dividend of $0.52 per unit.
• The stock has a price-to-earnings ratio of 15.6.
• The stock has a beta of 0.7, which means that it is less volatile than the market as a whole.

If you are looking for a renewable energy investment with a strong track record and good growth prospects, Enviva Partners is a good option to consider.

7) Magellan Midstream Partners

Magellan Midstream Partners (MMP) is a master limited partnership (MLP) that owns, operates, and develops a network of pipelines, terminals, and storage facilities for refined petroleum products and crude oil. The company's assets are located in the Mid-Atlantic, Midwest, and Southeast regions of the United States.

MMP is a good MLP for a number of reasons.

• First, the company has a strong track record of financial performance. MMP has paid a quarterly cash distribution to its unitholders for 47 consecutive years, and the distribution has grown at a compound annual growth rate (CAGR) of 8% over the past decade.
• Second, MMP has a diversified asset base. The company's assets are located in a variety of markets, which helps to reduce the company's risk. MMP also has a long-term contract backlog, which provides visibility into future cash flows.
• Third, MMP is a fee-based business. The company's assets are leased to third-party customers, which provides a steady stream of revenue. MMP's fee-based business model also helps to insulate the company from commodity price volatility.
• Fourth, MMP is well-managed. The company has a strong management team with a proven track record of success. MMP's management team is focused on maintaining the company's financial strength and growing its asset base.

Analysts are generally positive about MMP. The company has a Zacks Rank #3 (Hold) and a VGM Score of B. Analysts believe that MMP is a good investment for investors who are looking for a high-yielding MLP with a strong track record of financial performance.

Here are some additional thoughts on why Magellan Midstream Partners is a good MLP:

• The company is a leader in the refined products transportation and storage industry.
• MMP has a strategic asset base that is well-positioned to benefit from growing demand for refined products.
• The company has a strong balance sheet and generates significant free cash flow.
• MMP has a history of returning capital to shareholders through dividends and share repurchases.

Overall, Magellan Midstream Partners is a good MLP for investors who are looking for a high-yielding, well-managed company with a strong track record of financial performance.

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8) Magellan Dorchester Minerals

Magellan Dorchester Minerals (DMLP) is a master limited partnership (MLP) that owns a portfolio of midstream assets in the Permian Basin. The company's assets include gathering and processing pipelines, crude oil storage tanks, and terminal facilities.

DMLP is a good MLP for a number of reasons.

• First, the company has a strong track record of financial performance. DMLP has paid a quarterly cash distribution to its unitholders for 11 consecutive years, and the distribution has grown at a compound annual growth rate (CAGR) of 15% over the past five years.
• Second, DMLP has a diversified asset base. The company's assets are located in a variety of markets, which helps to reduce the company's risk. DMLP also has a long-term contract backlog, which provides visibility into future cash flows.
• Third, DMLP is a fee-based business. The company's assets are leased to third-party customers, which provides a steady stream of revenue. DMLP's fee-based business model also helps to insulate the company from commodity price volatility.
• Fourth, DMLP is well-managed. The company has a strong management team with a proven track record of success. DMLP's management team is focused on maintaining the company's financial strength and growing its asset base.

Analysts are generally positive about DMLP. The company has a Zacks Rank #2 (Buy) and a VGM Score of A. Analysts believe that DMLP is a good investment for investors who are looking for a high-yielding MLP with a strong track record of financial performance.

Here are some additional thoughts on why Magellan Dorchester Minerals is a good MLP:

• The company is a pure-play Permian Basin MLP, which gives it exposure to one of the most prolific oil and gas producing regions in the world.
• DMLP has a strategic asset base that is well-positioned to benefit from growing demand for oil and gas in the Permian Basin.
• The company has a strong balance sheet and generates significant free cash flow.
• DMLP has a history of returning capital to shareholders through dividends and share repurchases.

Overall, Magellan Dorchester Minerals is a good MLP for investors who are looking for a high-yielding, well-managed company with a strong track record of financial performance and exposure to the Permian Basin.

9) CrossAmerica Partners

CrossAmerica Partners (CAPL) is a master limited partnership (MLP) that is a leading wholesale distributor of motor fuels, convenience store operator, and owner and lessee of retail distribution real estate. The company's operations are concentrated in the eastern and southeastern United States.

CAPL is a good MLP for a number of reasons.

• First, the company has a strong track record of financial performance. CAPL has paid a quarterly cash distribution to its unitholders for 10 consecutive years, and the distribution has grown at a compound annual growth rate (CAGR) of 10% over the past five years.
• Second, CAPL has a diversified asset base. The company's assets include a network of wholesale fuel terminals, convenience stores, and real estate. This diversification helps to reduce the company's risk.
• Third, CAPL is a fee-based business. The company's assets are leased to third-party customers, which provides a steady stream of revenue. CAPL's fee-based business model also helps to insulate the company from commodity price volatility.
• Fourth, CAPL is well-managed. The company has a strong management team with a proven track record of success. CAPL's management team is focused on maintaining the company's financial strength and growing its asset base.

Analysts are generally positive about CAPL. The company has a Zacks Rank #2 (Buy) and a VGM Score of A. Analysts believe that CAPL is a good investment for investors who are looking for a high-yielding MLP with a strong track record of financial performance.

Here are some additional thoughts on why CrossAmerica Partners is a good MLP:

• The company is a leading player in the wholesale motor fuels distribution industry.
• CAPL has a strategic asset base that is well-positioned to benefit from growing demand for motor fuels.
• The company has a strong balance sheet and generates significant free cash flow.
• CAPL has a history of returning capital to shareholders through dividends and share repurchases.

Overall, CrossAmerica Partners is a good MLP for investors who are looking for a high-yielding, well-managed company with a strong track record of financial performance and exposure to the wholesale motor fuels distribution industry.

10) USA Compression Partners

USA Compression Partners (USAC) is a master limited partnership (MLP) that provides compression services to the natural gas industry. The company's assets are located in the United States, primarily in the Permian Basin, Marcellus Shale, and Eagle Ford Shale.

USAC is a good MLP for a number of reasons.

• First, the company has a strong track record of financial performance. USAC has paid a quarterly cash distribution to its unitholders for 13 consecutive years, and the distribution has grown at a compound annual growth rate (CAGR) of 12% over the past five years.
• Second, USAC has a diversified asset base. The company's assets are located in a variety of shale plays, which helps to reduce the company's risk. USAC also has a long-term contract backlog, which provides visibility into future cash flows.
• Third, USAC is a fee-based business. The company's assets are leased to third-party customers, which provides a steady stream of revenue. USAC's fee-based business model also helps to insulate the company from commodity price volatility.
• Fourth, USAC is well-managed. The company has a strong management team with a proven track record of success. USAC's management team is focused on maintaining the company's financial strength and growing its asset base.

Analysts are generally positive about USAC. The company has a Zacks Rank #1 (Strong Buy) and a VGM Score of A. Analysts believe that USAC is a good investment for investors who are looking for a high-yielding MLP with a strong track record of financial performance.

Here are some additional thoughts on why USA Compression Partners is a good MLP:

• The company is a leading provider of compression services in the United States.
• USAC has a strategic asset base that is well-positioned to benefit from growing demand for natural gas.
• The company has a strong balance sheet and generates significant free cash flow.
• USAC has a history of returning capital to shareholders through dividends and share repurchases.

Overall, USA Compression Partners is a good MLP for investors who are looking for a high-yielding, well-managed company with a strong track record of financial performance and exposure to the natural gas industry.

Here are some of the advantages of USA Compression Partners:

• Strong demand for natural gas: The demand for natural gas is expected to grow in the coming years, due to its use in power generation, industrial applications, and transportation. This growth will benefit USAC, as it is a leading provider of compression services to the natural gas industry.
• Diversified asset base: USAC has a diversified asset base, with assets located in a variety of shale plays. This diversification helps to reduce the company's risk.
• Long-term contracts: USAC has a long-term contract backlog, which provides visibility into future cash flows. This helps to reduce the company's risk and ensure a steady stream of income.
• Fee-based business model: USAC's assets are leased to third-party customers, which provides a steady stream of revenue. This fee-based business model also helps to insulate the company from commodity price volatility.
• Strong management team: USAC has a strong management team with a proven track record of success. This team is focused on maintaining the company's financial strength and growing its asset base.

Overall, USA Compression Partners is a good MLP with a strong track record of financial performance and a number of advantages. Investors who are looking for a high-yielding, well-managed company with exposure to the natural gas industry should consider investing in USAC.