Retirees Are Not Taking Advantage: MLPA Provides Almost 8% Income From Major Infrastructure Companies Such as Energy Transfer

The Global X MLP ETF (NYSEARCA: MLPA) offers a 7.26% annual yield, primarily driven by five large energy infrastructure companies. These companies represent 58% of the ETF's portfolio, with Energy Transfer leading the pack. Energy Transfer shows strong distribution safety, with a 1.8x coverage ratio, and has recently seen insider buying worth $33.76 million. Investors seeking higher liquidity can also consider the Alerian MLP ETF (NYSEARCA: AMLP), which offers a slightly higher yield of 8.2% and is the largest MLP-focused ETF in the market.

Top Holdings and Distribution Coverage

MLPAs portfolio is highly concentrated in five major energy infrastructure companies. Below is a summary of its largest holdings:

Energy Transfer stands out with a robust 1.8x distribution coverage ratio, meaning the company generates $1.80 in distributable cash flow for every dollar paid out in distributions. The company recently increased its quarterly distribution to $0.3325 per unit, marking a 3% year-over-year rise. In Q3 2025, Energy Transfer reported $1.9 billion in distributable cash flow and $3.84 billion in adjusted EBITDA. The companys founder, Kelcy L. Warren, also purchased $33.76 million worth of common units.

Enterprise Products Partners maintains a solid 1.5x coverage ratio in Q3 2025, with $1.8 billion in distributable cash flow and $1.2 billion in distributions. The company raised its quarterly distribution to $0.545 per unit, reflecting a 3.8% growth. Enterprise also achieved significant operational milestones, including processing 8.1 Bcf/d of natural gas.

MPLX posted a 1.3x distribution coverage in Q3 2025, which is the lowest among the top holdings, but still considered stable. The company increased its quarterly distribution to $1.0765 per unit. Similarly, Western Midstream maintained its $0.91 quarterly distribution, with record adjusted EBITDA of $633.8 million. Plains All American reported $669 million in adjusted EBITDA, following its acquisition of EPIC Crude Holdings, and the 9.5% yield remains well supported.

Distribution Sustainability and Risks

MLPAs 7.26% yield is sustainable based on the solid distribution coverage ratios of its top holdings. Most of the companies in the portfolio generate more cash flow than they distribute, with Energy Transfer offering the greatest buffer at 1.8x. While risks exist, such as the ETF's high concentration in energy infrastructure and potential sensitivity to oil and gas production declines, the distributions remain well-supported.

MLPA's sector concentration in energy infrastructure (96.5% of the portfolio) exposes it to fluctuations in oil and gas production, though its holdings are generally less sensitive to commodity price movements due to fee-based contracts. Additionally, the ETFs expense ratio of 0.45% slightly reduces its net yield.

Alternative to Consider: Alerian MLP ETF

If youre looking for an alternative to MLPA, the Alerian MLP ETF (AMLP) offers an 8.2% yield and is the largest ETF focused on MLPs, providing better liquidity and a broader portfolio. It tracks a more diversified midstream MLP index and shares significant holdings with MLPA, including Energy Transfer, Enterprise Products Partners, and MPLX. The higher yield and improved liquidity make AMLP a worthy comparison to MLPA.

Sources:

• Retirees Are Missing Out: MLPA Delivers Nearly 8% Income From Infrastructure Giants Like Energy Transfer

Author: Lucas Grant
Lucas Grant is a sports journalist with extensive experience covering football and basketball championships. Known for factual accuracy and an engaging, dynamic writing style.