Summary
- On a year-over-year basis, 96.4% of the Alerian Midstream Energy Index (AMNA) by weighting have grown their dividends.
- MLPs largely drove sequential growth in payouts for 3Q25, while nearly all corporations kept their dividends steady. No AMNA constituent has cut its regular dividend since July 2021.
- Dividend growth continues to enhance already-compelling midstream yields, and more dividend increases are expected for 4Q25.
For the third quarter of 2025, most energy infrastructure companies maintained their payouts, with MLPs largely providing sequential growth. Still, the vast majority of midstream companies have increased their dividends within the last year. With more than four years since a cut to a regular dividend for a constituent of the broad Alerian Midstream Energy Index (AMNA), the tailwind of dividend growth is expected to continue into 2026 and beyond. Learn more below about 3Q25 MLP/midstream dividends, current yields, and anticipated dividend hikes for 4Q25 below.
3Q25 Payouts: Notable increases from MLPs and C-Corps.
Looking at sequential dividend increases, growth mainly came from the MLPs that typically grow their distributions each quarter. The majority of midstream names announce an increase once a year, and that often coincides with 4Q or 1Q announcements. Though many of the increases in 3Q25 were anticipated, growth was a mix of double-digit percentage increases and small hikes.
The largest sequential percentage increase was from MLP MPLX (MPLX), which raised its distribution by 12.5% to $1.0765 per unit, consistent with management’s commentary and the increase seen last year. Among corporations, C-Corp Cheniere Energy (LNG) increased its dividend by 11% to $0.555 per share, as originally previewed in June. Hess Midstream (HESM), which typically increases its payout each quarter, raised its distribution by 2.4% to $0.7548.
The remaining sequential increases came from MLPs with a track record of growing their payout each quarter: Energy Transfer (ET), Sunoco (SUN), Global Partners (GLP), and Delek Logistics Partners (DKL). Having initiated quarterly increases in 4Q24, SUN’s 1.25% distribution increase marked its fourth consecutive quarterly hike, putting it on track to achieve its target of at least 5% distribution growth in 2025.
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 3Q25 payouts to those made for 2Q25. To be clear, 3Q25 dividends refer to dividends paid in 4Q25 based on operational performance in 3Q25.
Year-over-year comparison highlights widespread dividend growth.
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 toward rising payouts. More than 80% of AMZ and almost 90% of AMZI by weighting have increased their dividends within the last year. For AMNA, 96.4% of the index by weighting has grown payouts relative to 3Q24. Looking at the absolute numbers, the majority of constituents in each index have grown their dividends.
MLP/midstream yields remain attractive with more dividend growth on the horizon.
Dividend growth enhances already-attractive yields for MLPs and midstream corporations. As shown below, AMZI was yielding 8.0% as of November 13, which is above its three-year average yield of 7.5%. AMZ was also yielding 7.6%, above its three-year average of 7.3%. MLP yields remain particularly attractive for income-seeking investors, particularly as interest rates fall.
Looking ahead to 4Q25 dividend announcements, more growth is anticipated. Midstream companies that traditionally raise their payouts once annually at the beginning of the year include Plains All American (PAA/PAGP), ONEOK (OKE), Williams (WMB), DT Midstream (DTM), Enbridge (ENB CN), TC Energy (TRP CN), and Gibson Energy (GEI CN). Bellwether MLP Enterprise Products Partners (EPD) has also been raising its distribution in January in recent years.
Longer term, midstream companies are expected to continue prioritizing dividend growth. On its 3Q25 earnings call, MPLX management noted it expects to sustain its 12.5% level of annual increases for the next few years. Separately, Targa Resources (TRGP) announced its expectation to increase the 2026 annual common dividend by 25% to $5.00 per share, beginning with the May payout. Company commentary and ongoing free cash flow generation continue to drive a constructive outlook for midstream/MLP payouts.
Bottom Line
Midstream/MLP dividend growth remains a reliable tailwind, reinforced by 3Q25 announcements. Consistent dividend growth supports generous yields and provides attractive returns for investors. Complementing this payout growth are equity repurchases, which will be discussed in detail next week. Stay tuned.
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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).
Related Research:
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2Q25 MLP/Midstream Dividend Recap: MLPs Deliver Growth
MLPs/Midstream 1Q25 Dividend Growth Unfazed by Volatility
Examining 2024 Midstream/MLP Dividend Coverage
Delving into MLP/Midstream Total Shareholder Yield
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.
Originally published on ETF Trends
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