For the fourth quarter of 2025, almost half of the constituents in the broad Alerian Midstream Energy Index (AMNA) increased their payouts, with sequential growth coming from both MLPs and C-Corps. The vast majority of midstream companies have increased their dividends within the last year, and the tailwind of dividend growth is expected to continue this year. Learn more below about 4Q25 MLP/midstream dividends and anticipated dividend hikes for 1Q26.
Looking at sequential dividend increases, growth came from both the MLPs that typically grow their distributions each quarter and corporations that generally announce increases once a year. With two exceptions, percentage increases were in the low- to mid-single digits. Fourth-quarter 2025 dividends continued the solid growth seen in recent years.
The largest sequential percentage increase was from Plains All American (PAA/PAGP), which announced a 9.9% increase to its payout for 4Q25 to $0.4175 per unit consistent with long-held guidance. Following PAA, the large corporations that generally announce increases for 4Q raised their payouts by mid-single-digits. Williams (WMB) increased its dividend by 5.0%. Similarly, ONEOK (OKE) increased its quarterly dividend by 3.9% to $1.07 per share.
Among the Canadian corporations, Enbridge (ENB) increased its dividend by 2.9% to and TC Energy (TRP) raised its payout by 3.2%. Notably, Gibson (GEI) raised its payout by 4.7%.
Additionally, MLP bellwether Enterprise Products (EPD) announced a 0.9% increase in its quarterly distribution to $0.55 per unit. In recent years, EPD has increased its distribution twice a year. MLP Genesis Energy (GEL), which saw the second-greatest increase among AMNA constituents, raised its quarterly payout 9.1% to $0.18 per unit
The remaining sequential increases came from MLPs 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). Having initiated quarterly increases in 4Q24, SUN’s 1.25% distribution increase marked its fifth consecutive quarterly hike, and the company is currently targeting at least 5% distribution growth in 2026.
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 4Q25 payouts to those made for 3Q25. To be clear, 4Q25 dividends refer to dividends paid in 1Q26 based on operational performance in 4Q25.
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, 92.7% of the index by weighting has grown payouts relative to 4Q24. Looking at the absolute numbers, the majority of constituents in each index have grown their dividends.
Looking ahead to 1Q26 dividend announcements, more growth is anticipated. Targa Resources (TRGP) has reaffirmed its intention to recommend a 25% increase to its 1Q26 dividend to $1.25 per share. Last week, Western Midstream (WES) announced plans to recommend a 2.2% increase to its 1Q26 distribution to $0.93 per unit. Kinder Morgan plans to increase its dividend by 1.7% for 2026.
Longer term, midstream companies are expected to continue prioritizing dividend growth. Alongside, TRGP’s expected 25% increase beginning with its May payout, MPLX management noted on its 4Q25 earnings call it expects its current 12.5% level of annual distribution growth to continue for two more years. Cheniere (LNG) likewise re-affirmed on its call that the company is committed to growing dividends by ~10% annually through the end of the decade. EBITDA growth and ongoing free cash flow generation continue to drive a constructive outlook for midstream/MLP payouts.
Supported by this widespread dividend growth and a surprising early-year rally in oil prices, energy infrastructure has kicked off 2026 with exceptional momentum. As of early February, midstream indexes are handily outperforming a barely positive broader market (S&P 500 +0.7%). Year-to-date through February 18, AMNA has gained 15.7%, AMZ has gained 14.7%, and AMZI has gained 14.6% on a total-return basis. Energy infrastructure’s capital appreciation together with the compelling, stable income it provides have combined to offer robust total returns so far this year.
Midstream/MLP dividend growth remains a reliable tailwind, reinforced by 4Q25 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).
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