The energy midstream sector remains a premier destination for income investors in 2026, offering yields that significantly outpace the broader market. Master Limited Partnerships (MLPs) are particularly attractive for their high cash distributions and pass-through tax structure, which avoids the double taxation common in standard corporations. 6 Top MLPs and Energy Partnerships for 2026
: Unlike typical stocks that issue a 1099-DIV, MLPs issue a Schedule K-1 . This form can delay tax filings and may require you to file in multiple states where the partnership operates. 6 mlps to buy now
: Holding direct MLPs in a tax-advantaged account like an IRA can trigger Unrelated Business Taxable Income (UBTI) , which may be taxable even within the retirement account if it exceeds $1,000. The energy midstream sector remains a premier destination
: Offering one of the highest yields among large-caps, Energy Transfer operates an extensive midstream network across North America. It is in its strongest financial position ever, with a leverage ratio at the low end of its target and enough cash to cover distributions by nearly 1.8 times. This form can delay tax filings and may
: Widely considered the highest-quality MLP, Enterprise has a massive integrated network and has increased its distribution for 27 consecutive years. It carries a rare A- credit rating and generates stable, fee-based cash flow that is largely insulated from commodity price swings.
: Investors who want exposure to these yields without the K-1 paperwork often use funds like the Alerian MLP ETF (AMLP) . These ETFs issue a standard 1099-DIV and can be held in IRAs without UBTI concerns. Enterprise Products