Most investors think of master limited partnerships (MLPs) as strictly investment vehicles in the energy business, but there are other types, including one that is run by one of the most iconic and legendary investors of our time. While better suited for growth and income investors who are more aggressive, the top MLPs may be a gold mine in the current investment environment.
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We screened our 24/7 equity MLP research universe looking for the companies paying the highest dividends, and five stood out for investors looking to generate big passive income streams, but looking to stay away from lower credit high-yield junk bonds. We have listed the companies in order of the highest distribution.

It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Icahn Enterprises

Led by one of the most renowned investors of our time, Carl Icahn, this MLP is quite diversified. Icahn Enterprises L.P. (NYSE: IEP) operates in investment, energy, automotive, food packaging, real estate, home fashion and pharmaceutical businesses in the United States and internationally.

The company’s Investment segment invests its proprietary capital through various private investment funds. The Energy segment refines and markets transportation fuels, and it produces and markets nitrogen fertilizers in the form of urea ammonium nitrate and ammonia. Its Automotive segment is involved in the retail and wholesale distribution of automotive parts, as well as offering automotive repair and maintenance services.

Icahn Enterprises Food Packaging segment produces and sells cellulosic, fibrous and plastic casings that are used for preparing processed meat products. Its Real Estate segment is involved in the rental of retail, office and industrial properties; construction and sale of single-family homes and residential units; and golf and club operations. This segment also engages in hotel and timeshare resort operations.

The Home Fashion segment manufactures, sources, markets, distributes and sells home fashion consumer products. Its Pharma segment offers pharmaceutical products and services.

There is no Wall Street coverage for the stock, likely because Icahn does so much business across the street that banks and brokerages want to avoid any conflict of interest. However, Motley Fool included the company in a recent article on top high-yielding stocks and noted this: “The company’s enormous yield is the core reason its shares have consistently trounced the broader market over the past 22 years. Icahn Enterprises has doled out 70 straight quarterly distributions to shareholders.”

Investors receive a 14.88% dividend, and Icahn Enterprises stock will go ex-dividend on Friday. There is no consensus target due to the lack of Wall Street coverage. The shares closed on Tuesday at $54.07.

This is a leader in the thermal coal business and also offers solid diversity. Alliance Resource Partners L.P. (NASDAQ: ARLP), a diversified natural resource company, produces and markets coal primarily to utilities and industrial users in the United States. The company produces a range of thermal and metallurgical coal with sulfur and heat contents.
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It operates seven underground mining complexes in Illinois, Indiana, Kentucky, Maryland, Pennsylvania and West Virginia. In addition, it leases land and operates a coal loading terminal on the Ohio River at Mt. Vernon, Indiana. It buys and resells coal, as well as owns mineral and royalty interests in approximately 1.5 million gross acres of oil and gas producing regions primarily in the Permian, Anadarko and Williston Basins.

Further, the company offers various mining technology products and services, including data network, communication and tracking systems, mining proximity detection systems, industrial collision avoidance systems and data and analytics software.

As of December 31, 2021, it had approximately 547.1 million tons of proven and probable coal mineral reserves, as well as 1.17 billion tons of measured, indicated and inferred coal mineral resources.

Holders of Alliance Resource Partners stock enjoy a 13.47% distribution. Noble Financial’s $32 target price is higher than the $29.33 consensus target and Tuesday’s close at $20.46.

USA Compression Partners

This company works with some of the biggest oil and natural gas producers. USA Compression Partners L.P. (NYSE: USAC) provides compression services under term contracts with customers in the natural gas and crude oil industries in the United States. The company engineers, designs, operates, services and repairs its compression units, and it maintains related support inventory and equipment.

It also provides compression services in various shale plays, including the Utica, Marcellus, Permian Basin, Delaware Basin, Eagle Ford, Mississippi Lime, Granite Wash, Woodford, Barnett, Haynesville, Niobrara, and Fayetteville shales.

As of December 31, 2022, the company had 3,716,854 horsepower in its fleet. It was founded in 1998 and is headquartered in Austin, Texas.

The distribution yield here is 9.66%. Note that Stifel has a Hold rating, and its $21 target price compares with a $20.75 consensus target and the most recent close at $21.74.

Energy Transfer

This top MLP is a very safe way for investors looking for energy exposure and income. Energy Transfer L.P. (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all the major domestic production basins.
Energy Transfer is a publicly traded limited partnership with core operations that include complimentary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquid (NGL) and refined product transportation and terminaling assets; NGL fractionation; and various acquisition and marketing assets.
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After the purchase of Enable Partners in 2021, Energy Transfer owns and operates more than 114,000 miles of pipelines and related assets in all the major U.S. producing regions and markets across 41 states, further solidifying its leadership position in the midstream sector.

Through its ownership of Energy Transfer Operating (formerly known as Energy Transfer Partners), the company also owns Lake Charles LNG, as well as the general partner interests, the incentive distribution rights and 28.5 million common units of Sunoco and the general partner interests, and 39.7 million common units of USA Compression Partners.

Energy Transfer stock comes with a 9.54% distribution. The $18 Morgan Stanley price target compares with a $16.75 consensus target. Shares were last seen trading at $13.13 apiece.

MPLX

This is the top holding for the Alerian MLP energy exchange-traded fund. MPLX L.P. (NYSE: MPLX) is primarily engaged in crude oil and refined products transportation and terminaling in the U.S. Midwest and Gulf Coast regions, as well as natural gas gathering and processing in the northeast from its prior acquisition of MarkWest Energy in 2015. MPLX was formed by independent U.S. refiner Marathon Petroleum.

The company’s assets include a network of crude oil and refined product pipelines; an inland marine business; light-product terminals; storage caverns; refinery tanks, docks, loading racks and associated piping; and crude and light-product marine terminals. It also owns crude oil and natural gas gathering systems and pipelines, as well as natural gas and NGL processing and fractionation facilities in key U.S. supply basins.

Investors receive a 9.00% distribution. MPLX stock has a $40 price target at Raymond James. The consensus target is $38.42, and Tuesday’s closing price was $34.86.

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These five top companies deliver some of the highest reliable dividends on Wall Street. Again, they are not suitable for conservative income investors looking to protect their principal, but for others seeking big chunks of passive income, they could be outstanding ideas to consider.

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