2Q26 MLP/Midstream Dividends: MLPs Drive Growth

For the second quarter of 2026, sequential dividend growth across the broad Alerian Midstream Energy Index (AMNA) came primarily from MLPs, while most midstream corporations maintained their dividends. On a year-over-year basis, the vast majority of midstream companies have grown their payouts, and growth is expected to continue. Learn more below about 2Q26 MLP/midstream dividends and how robust free cash flow supports sustainable distribution growth and compelling yields.

• On a year-over-year basis, 95.6% of the Alerian Midstream Energy Index (AMNA) by weighting has grown its dividends.
• MLPs largely drove sequential growth in payouts for 2Q26, while most corporations kept their dividends steady. No AMNA constituent has cut its regular dividend since July 2021.
• Robust free cash flow generation continues to support financial flexibility and reliable dividend growth, supporting solid yields.

Looking at sequential dividend increases, growth mainly came from the MLPs that typically grow their distributions each quarter. Most midstream corporations increase payouts once a year, and that often coincides with 4Q or 1Q announcements. Canadian C-Corp Keyera (KEY:TSE) announced a 4.2% increase, marking the standout dividend hike among C-Corps this quarter.

Bellwether MLP Enterprise Products Partners (EPD) announced a 1.8% increase in its quarterly distribution to $0.56 per unit. In recent years, EPD has increased its distribution twice a year. MLP Genesis Energy (GEL), which saw the greatest percentage increase among AMNA constituents from a relatively small base, raised its quarterly payout 11.1% to $0.20 per unit.

The remaining sequential increases came from names with a track record of growing their payout each quarter: Energy Transfer (ET), Sunoco (SUN), Hess Midstream (HESM), Global Partners (GLP), and Delek Logistics Partners (DKL). SUN’s 1.3% distribution increase marked its seventh consecutive quarterly hike. This follows a notable 6.3% sequential increase in the first quarter (which included a one-time 5% step-up), keeping the company well aligned with its target multi-year distribution growth rate of at least 5%.

The pie charts below show quarter-over-quarter changes to dividends for AMNA, the Alerian MLP Index (AMZ), and the Alerian MLP Infrastructure Index (AMZI) by comparing 2Q26 payouts to those made for 1Q26. To be clear, 2Q26 dividends refer to dividends paid in 3Q26 based on operational performance in 2Q26.

With many companies only increasing their payouts once each year, a year-over-year comparison can provide a clearer picture of dividend trends. The pie charts below show a pronounced bias towards rising payouts. Over 80% of AMZ and almost 90% of AMZI by weighting have increased their distributions within the last year. For AMNA, 95.6% of the index by weighting has grown payouts relative to 2Q25. Looking at the absolute numbers, the majority of constituents in each index have grown their dividends.

Midstream companies that prefer annual hikes typically make those announcements for 4Q or 1Q payouts. As expected, this led to a quieter 2Q26 for increases from C-Corps; however, companies clearly continue to prioritize dividend growth. Looking ahead, MLP MPLX (MPLX) expects to continue 12.5% annual distribution growth for 2026 and 2027. C-Corp Cheniere Energy (LNG) remains committed to growing dividends by ~10% annually through the end of the decade. Both companies typically announce their annual distribution increase in 3Q. Additionally, HESM and SUN are both targeting multi-year distribution growth of at least 5% annually, with HESM’s outlook extending through 2028.

Over recent years, midstream MLPs and corporations have stood out for their robust free cash flow (FCF) generation, which supports reliable dividend growth and share buybacks. Benefiting from fee-based contracts, energy infrastructure companies are largely shielded from commodity price volatility, providing them with clear, multi-year cash flow visibility. In 2026, midstream MLPs continue to generate some of the highest FCF yields in both the energy sector and the broader equity market.

This robust free cash flow generation has fueled consistently strong distribution growth in recent years, with AMZ having delivered its fourth consecutive year of double-digit normalized distribution growth in 2025. Looking ahead, the outlook remains constructive, particularly given macro tailwinds, with most names expected to raise annual payouts by mid-single-digit percentages over the next several years. As of August 7, AMZ and AMZI were yielding 6.4% and 6.7% respectively, while AMNA was yielding 4.4%. Yields have moderated since the start of the year with strong performance. AMZ, AMZI, and AMNA are up over 18% year-to-date through August 7 on a price-return basis.

Midstream/MLP dividend growth remains a reliable tailwind, reinforced by 2Q26 announcements. Consistent dividend growth supports compelling yields and provides attractive returns for investors. Complementing this payout growth are equity repurchases, which will be discussed in detail next week. Stay tuned.

For the latest insights on how energy infrastructure can provide reliable yield and defensiveness amid market uncertainty, don’t miss our next virtual event, “Navigating Macro Volatility with Energy Infrastructure,” on Tuesday, August 25, 2026, at 12:30 pm ET. Follow the link here to register.

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AMZI is the underlying index for the Alerian MLP ETF (AMLP) and the ETRACS Alerian MLP Infrastructure Index ETN Series B (MLPB). AMZ is the underlying index for the JPMCFC Alerian MLP Index ETN (AMJB), the ETRACS Alerian MLP Index ETN Series B (AMUB), and the ETRACS Quarterly Pay 1.5x Leveraged Alerian MLP Index ETN (MLPR).

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vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for AMJB, AMUB, MLPR, AMLP, and MLPB, for which it receives an index licensing fee. However, AMJB, AMUB, MLPR, AMLP, and MLPB are not issued, sponsored, endorsed or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing or trading of AMJB, AMUB, MLPR, AMLP, and MLPB.