Dividend Contenders List: Top 15

1. Delek Logistics Partners, LP (NYSE:DKL)

Dividend Yield as of March 12: 10.73%

Delek Logistics Partners, LP (NYSE:DKL) is an American midstream and logistics company that specializes in the transportation and storage of crude oil, refined products, and other liquid hydrocarbons. In the fourth quarter of 2024, the company posted revenue of over $209.8 million, which fell by 17.4% from the same period last year. However, it achieved a record Adjusted EBITDA of $107.2 million in the fourth quarter of 2024, reflecting a 6% increase from the previous year. The company reported a net income of $35.3 million for the quarter, with $34.5 million attributable to limited partners, equating to $0.68 per diluted common limited partner unit.

Delek Logistics Partners, LP (NYSE:DKL) is pursuing an ambitious expansion strategy to establish itself as a comprehensive midstream services provider in the Permian Basin. Over the past year, the company completed multiple acquisitions and outlined plans to invest $75 million in expanding the Libby processing plant, along with allocating $160 million for growth and maintenance projects in 2025. DKL has also projected strong financial performance, setting its full-year 2025 adjusted EBITDA guidance between $480 million and $520 million, reflecting an expected 20% increase. In addition, a $150 million share buyback from its sponsor has been approved.

In the most recent quarter, Delek Logistics Partners, LP (NYSE:DKL) reported an operating cash flow of $49.9 million and its distributable cash flow came in at $69.5 million. On January 24, the company announced a 1% increase in its quarterly dividend, raising it to $1.105 per share. This milestone extended the company’s streak of consecutive dividend growth to 48 quarters, which makes DKL one of the best stocks on our dividend contenders list. As of March 12, the stock has a dividend yield of 10.73%.

Overall, Delek Logistics Partners, LP (NYSE:DKL) ranks first on our dividend contenders list. While we acknowledge the potential for DKL  as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DKL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.