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Enterprise Products Partners (NYSE: EPD) is one of the more popular energy stocks. A big factor is its prodigious payout. The master limited partnership (MLP) currently yields more than 7%. That's well above the S&P 500's dividend yield (around 1.3%).

That big-time income stream typically makes up the bulk of the MLP's total return. Those seeking more growth (and higher total return potential) should check out midstream rival Targa Resources (NYSE: TRGP). While it has a much lower dividend yield (recently over 2%), it has delivered much higher-octane total returns this year, which could continue in the future.

Faster earnings growth

Targa Resources' stock price has soared in 2024, easily outpacing the return generated by Enterprise Products Partners:

TRGP data by YCharts.

The main factor fueling that surge is its much faster growth rate. The midstream company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rocketed 22% last year to a record $3.5 billion, fueled by record volumes. For comparison, Enterprise Products' adjusted EBITDA was roughly flat at $9.3 billion as significantly lower commodity prices and natural gas processing margins offset higher volumes.

Targa Resources expects to continue delivering high-octane earnings growth. While it expects its adjusted EBITDA growth rate to slow this year to around 8%, it sees more meaningful growth in 2025 as its current slate of expansion projects come online. Those project completions should support continued adjusted EBITDA growth and significant free-cash-flow growth due to the expected decline in capital spending (from around $2.4 billion this year to $1.4 billion in 2025).

Enterprise Products Partners should also grow its earnings in the coming years, though it will likely be more moderate compared to Targa. Its adjusted EBITDA rose about 6.5% in the first quarter. Free-cash-flow growth will also likely be moderate as the company continues to invest heavily in expansion projects. It expects capital spending to be in the range of $3.3 billion-$3.8 billion over the next two years before moderating to $2 billion-$2.5 billion next year. However, that doesn't include spending on a potentially large-scale offshore oil export terminal.

Faster dividend growth

Targa Resources is also growing its dividend at a faster pace. It unveiled a monster 50% increase this year, following a nearly 43% raise last year and a massive 250% boost in 2022.

However, there is a caveat: Targa slashed its dividend in 2020 to retain additional cash to fund expansion projects and repay debt. Despite the rapid growth in recent years, its current payment level ($0.75 per share each quarter) is below its pre-pandemic level ($0.91 per share each quarter).

Still, Targa is growing its payout rapidly, which could continue. With its free cash flow expected to improve by around $1 billion next year, it should have plenty of fuel to continue increasing its dividend.

The company is also using some of its growing free cash flow to repurchase shares. It bought back a record $373.7 million last year and another $124 million in the first quarter. Targa's growing free cash flow should allow it to continue buying back stock, enhancing its per-share growth rates.

Whereas Targa Resources offers high-octane dividend growth, Enterprise Products Partners is as steady as they come. The MLP has increased its payout every year for a quarter century, including by 5.1% over the past year. Given the earnings growth coming down the pipeline, it should be able to continue increasing its payout at a modest annual pace. The MLP is also returning additional cash to investors via repurchases (including $40 million in the first quarter).

The potential to earn higher-octane total returns

Enterprise Products Partners delivers slow and steady earnings and income growth. That makes it an ideal investment for those seeking a high-yielding, slowly rising passive income stream above all else.

Those desiring more upside potential should take a closer look at Targa Resources. It's growing its earnings, free cash flow, and dividends at much faster rates. While it doesn't offer a high-yielding payout, it could continue to generate higher total returns, making it a potentially better option for those seeking to grow their wealth faster in the future.

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Matt DiLallo has positions in Enterprise Products Partners. The Motley Fool recommends Enterprise Products Partners and Targa Resources. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.