Best High-Yield Picks 2026

Yield: ~7.4% | Coverage Ratio: ~1.7x | Sector: Midstream MLP

Enterprise Products Partners is the gold standard of midstream MLPs. With over 50,000 miles of pipelines, NGL fractionation capacity, storage facilities, and export terminals, EPD operates the most integrated midstream network in North America. The distribution has been raised for 25 consecutive years — a track record unmatched in the MLP space. Coverage at 1.7x means Enterprise retains significant cashflow after distributions for self-funded growth projects, reducing the need for dilutive equity issuance. The NGL and petrochemical value chain provides diversified revenue streams that are less correlated with crude oil prices than pure-play oil pipelines. For the 80% income core of any portfolio, EPD is the anchor position.

Yield: ~9.8% | NII Coverage: ~1.2x | Sector: BDC (Private Credit)

Ares Capital is the largest publicly traded BDC with a portfolio exceeding $22 billion in fair value, invested primarily in first-lien senior secured loans to upper middle-market companies. Scale matters in private credit: ARCC sees more deal flow, negotiates better terms, and diversifies across more borrowers than smaller BDCs. Net investment income consistently exceeds the regular dividend, and supplemental dividends add to total income when spillover income accumulates. The non-accrual rate has remained below 2% of fair value even through economic soft patches, reflecting disciplined underwriting. In a higher-for-longer rate environment, ARCC's floating-rate loan portfolio continues to generate elevated net interest margins.

Yield: ~8.1% | Coverage Ratio: ~2.0x | Sector: Midstream MLP

Energy Transfer operates one of the largest and most diversified midstream portfolios in the United States, spanning natural gas pipelines, NGL transportation and fractionation, crude oil pipelines, and refined product terminals. The company's turnaround from the 2020 distribution cut has been remarkable: leverage has fallen from 5.5x to under 4.0x, the distribution has been restored and raised multiple times, and coverage now exceeds 2.0x — meaning ET generates twice the cashflow needed to fund its distribution. The excess cashflow funds organic growth projects (including LNG feed gas pipelines) without dilutive equity issuance. At current prices, ET trades at a meaningful discount to its midstream peers on an EV/EBITDA basis.

Yield: ~6.8% (monthly + supplemental) | NII Coverage: ~1.3x | Sector: BDC (Private Credit)

Main Street Capital is the premium BDC, known for its internally managed structure (no external management fees), monthly dividend payments, and consistent NAV growth. MAIN invests in both debt and equity of lower middle-market companies, giving it upside participation that most BDCs lack. The monthly dividend has been increased multiple times per year, supplemented by semi-annual special dividends when realized gains justify it. The internally managed structure eliminates the fee drag that erodes returns at externally managed BDCs, resulting in better long-term total returns for shareholders. The lower current yield reflects the premium valuation — MAIN typically trades at 1.5-1.7x NAV — but the combination of growing monthly income and capital appreciation has delivered double-digit total returns consistently.

Yield: ~8.5% | Coverage Ratio: ~1.5x | Sector: Midstream MLP

MPLX is the midstream MLP affiliated with Marathon Petroleum, operating gathering, processing, and transportation infrastructure primarily in the Marcellus and Utica shale regions. The Appalachian natural gas basin benefits from proximity to high-demand Northeast markets and growing LNG export facilities. MPLX has steadily grown its distribution while simultaneously reducing leverage and buying back units. The coverage ratio at 1.5x provides ample cushion, and the asset base generates fee-based revenue largely insulated from commodity price swings. The affiliation with Marathon Petroleum provides operational synergies and a built-in anchor customer. For investors seeking a high-yield MLP with less commodity sensitivity than pure-play oil pipelines, MPLX is a strong choice.