Better Dividend Stock: Energy Transfer vs. Enterprise Products Partners in 2026

By Reuben Gregg Brewer – Feb 2, 2026 at 10:05PM ESTKey PointsEnergy Transfer and Enterprise Products Partners are both designed to be slow-growing, boring businesses.They each have similar goals for distribution growth.Don't jump on the higher-yielding option until you know more about both of these midstream giants.NYSE: ETEnergy TransferMarket Cap$63BToday's Changeangle-down(-1.68%) $0.31Current Price$18.14Price as of February 2, 2026 at 4:00 PM ETEnergy Transfer and Enterprise Products Partners have similar distribution growth rates, but one has a higher yield.Enterprise Products Partners (EPD 0.27%) and Energy Transfer (ET 1.68%) are two of the largest midstream businesses in North America. They provide services to energy companies, helping to move oil and natural gas around the world for a fee. While the energy sector is generally pretty volatile, these two master limited partnerships (MLPs) have reliable, cash-generating businesses to back their lofty yields. Which one will be a better income choice for you? A high yield and a higher yield Enterprise is offering investors a 6.3% distribution yield. Energy Transfer's yield is an even higher 7.1%. If all you care about is yield, the easy answer here is to buy Energy Transfer. That's not necessarily a bad call, given that both midstream master limited partnerships are likely to grow their distribution in the low-to-mid-single digits over time. Slow and boring is the goal today. Image source: Getty Images. That hasn't always been for Energy Transfer. For example, Energy Transfer cut its distribution in half in 2020 during the coronavirus pandemic. That was a difficult time for the energy sector as a whole. In 2016, during the last deep energy sector downturn, Energy Transfer had to scuttle a planned acquisition. The deal, which ended in a particularly ugly fashion, could have resulted in a dividend cut if it were consummated as originally planned. If you need a reliable income source to help pay your bills, Energy Transfer might not be the best choice for you. The yield is higher for a reason, and owning it could leave you with sleepless nights during the next energy industry downturn. ExpandNYSE: EPDEnterprise Products PartnersToday's Change(-0.27%) $-0.09Current Price$33.10Key Data PointsMarket Cap$72BDay's Range$32.72 - $33.4052wk Range$27.77 - $34.53Volume5.6MAvg Vol3.9MGross Margin12.74%Dividend Yield8.17% Enterprise is boring and reliable Enterprise is at the opposite end of the risk spectrum. It has long operated conservatively, with the best proof being its 27-year streak of annual distribution increases. That's basically as long as the MLP has been public. Add in an investment-grade-rated balance sheet and distribution coverage of 1.7x, and it seems like more slow and reliable distribution growth is on tap. For most dividend investors, Enterprise will likely be the better option. The extra income available from Energy Transfer is nice, but it comes with extra uncertainty that probably won't be worth it for those with a more conservative investment appetite. If you have to worry about Energy Transfer's distribution every time the energy sector hits a snag, how well are you likely to sleep at night?Read NextFeb 1, 2026 •By Matt DiLalloEnergy Transfer Continues to Boost its More Than 7%-Yielding DividendJan 30, 2026 •By Reuben Gregg BrewerWhere Will Energy Transfer Be in 10 Years?Jan 27, 2026 •By Keith SpeightsEnergy Transfer: The 7.4%-Yielding Dividend Stock Income Investors Can't IgnoreJan 27, 2026 •By Reuben Gregg BrewerThis 7%-Yielding Dividend Stock Is About to Enter an Exciting New Phase for Income InvestorsJan 25, 2026 •By Reuben Gregg BrewerShould You Buy Energy Transfer Stock While It's Below $20?Jan 24, 2026 •By Courtney CarlsenMy 1 Favorite Income Stock to Buy Right Now in the Energy SectorAbout the AuthorReuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.TMFReubenGBrewerStocks MentionedEnergy TransferNYSE: ET$18.14 (0.02%) $0.31Enterprise Products PartnersNYSE: EPD$33.10 (0.00%) $0.09*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.