Prediction: This Pipeline Stock's Payout Will Grow Faster Than Chevron's [or Exxon's] Over the Next 5 Years

For long-term income investors, pipeline stocks present attractive opportunities with both high yields and strong dividend growth potential. While industry giants like ExxonMobil and Chevron have decades-long streaks of dividend increases, Sunoco LP is emerging as a standout midstream player. Sunoco LP has proudly raised its dividend for seven consecutive quarters, targeting a multi-year growth rate of at least 5%, which could outpace the payout growth of ExxonMobil and Chevron.

Currently yielding 5.3%, Sunoco LP's leverage ratio of 3.98x suggests prudent capital allocation. The company's recent $600 million acquisition of Offen Petroleum, which will be accretive and increase cash flow for distribution growth, hints at even greater dividend growth potential. While Sunoco LP may exceed its stated 5% growth target, dependable 5% dividend raises are still highly appealing.