Plains All American Pipeline
Master limited partnership Plains All American Pipeline (PAA - Get Report) is an investment vehicle that was basically designed to generate income from the storage and transportation of petroleum and natural gas. As a result, Plains sports a massive dividend payout and frequent appearances on this list of dividend increasers. Don't be fooled by the small 1.3% increase in PAA's payout last week -- the company's 6.1% yield is staggering right now.
Plains' business is built on the consistent demand for crude oil and natural gas in the middle states, operations that benefit from a deep economic moat given the fact that Plains itself owns the infrastructure that transports that lifeblood to the Midwest. While the business can be complex, the firm's management team has proven adept at making meaningful acquisitions and hedging against downswings in the company's commodity exposure.
>> Keep the stock market at your fingertips with TheStreet's iPad app.Because of PAA's structure as an MLP, the stock sports a relatively scant balance sheet, opting instead to pass through the vast majority of its income to unit holders. The firm's income is consistent, and growth has remained positive throughout the recession -- unit holders can count on financial stability in this high-yield stock.