2 High-Yield Energy Dividend Stocks to Buy in September With Dividends You Can Count On

Energy Transfer reported Q2 2026 revenue of $34.3B, up 78% year over year and above estimates, while raising annual revenue guidance partly on stronger NGL demand; its distribution yield is 6.32% and has risen every quarter since Q3 2020. Kinder Morgan generated Q2 revenue of $4.48B, up 10% year over year and ahead of expectations, with shares still up 13.9% year to date and a $10B project backlog. Both midstream operators are positioned to benefit from natural-gas demand tied to LNG and data-center power needs, although slower demand growth or regulatory changes could weigh on infrastructure utilization.

Analysis

The relevant valuation variable for ET and KMI is not reported revenue but incremental distributable cash flow/EBITDA per unit of committed capacity. ET’s commodity-linked NGL and marketing exposure provides more upside in a rising liquids environment, but also makes its reported growth less comparable with KMI’s predominantly fee-based gas franchise. KMI should command the more defensive multiple if gas prices weaken, while ET is the higher-beta beneficiary if Gulf Coast NGL exports, associated-gas volumes, and power-load growth exceed contracted baselines.

The data-center narrative is at risk of being capitalized before projects become cash-generating. Load interconnection queues, turbine availability, and transmission buildouts can delay actual gas burn by 12-36 months; contracts should be evaluated for minimum-volume commitments, credit support, and cancellation provisions rather than headline customer names. The second-order beneficiary of genuine gas-power demand is likely constrained pipeline capacity into specific demand centers, not broad midstream mileage, making project-level permitting and in-service dates the key catalyst.

Over the next 1-3 months, quarterly guidance on project returns, leverage, and coverage ratios matters more than another dividend increase. Over 6-18 months, a sustained LNG/export buildout would favor ET’s broader NGL and export-connected footprint, whereas slower power demand or regulatory delays would expose the risk that both equities have rerated on capacity expectations ahead of cash flow. Falsify the constructive view if either issuer cuts 2027 EBITDA/capex-return guidance, leverage rises without visible contracted EBITDA, or new projects show weak shipper commitments.

Key Decisions for Investors

• Prefer a modest long ET / short KMI pair over 6-12 months if NGL export volumes and Gulf Coast project sanctions continue to improve: ET offers greater operating leverage to liquids and export throughput, while KMI hedges broad midstream and gas-demand multiple risk. Reassess if ET’s leverage trend deteriorates or KMI adds contracted backlog at returns above its current capital program.
• For defensive income exposure, accumulate KMI only on weakness around earnings or a broad gas-price selloff, contingent on stable dividend coverage and unchanged growth-capex guidance. The intended return is carry plus modest multiple recovery, not a near-term AI-power re-rating; exit on a material backlog cancellation or reduced growth-capex returns.
• Do not use ORCL as a direct proxy for either pipeline thesis. Set an alert for disclosed power-delivery timing, utility interconnection milestones, and contract terms tied to its data-center expansion; these are the missing evidence needed to translate announced demand into incremental ET/KMI cash flow.
• Avoid chasing either name solely on reported revenue beats. Require confirmation in segment EBITDA, distributable cash flow, and contracted-capacity additions at the next earnings releases before increasing gross exposure.