Track market-moving stories before they get noisy

In the latest trading session, Enterprise Products Partners (EPD - Free Report) closed at $39.32, marking a +1.26% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.48%. Meanwhile, the Dow experienced a drop of 0.77%, and the technology-dominated Nasdaq saw a decrease of 0.64%.

Shares of the provider of midstream energy services have appreciated by 2.56% over the course of the past month, underperforming the Oils-Energy sector's gain of 8.39%, and outperforming the S&P 500's loss of 0.97%.

Market participants will be closely following the financial results of Enterprise Products Partners in its upcoming release. The company is forecasted to report an EPS of $0.75, showcasing a 22.95% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $15.13 billion, indicating a 25.86% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.03 per share and revenue of $63.08 billion, which would represent changes of +13.91% and +19.94%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Enterprise Products Partners. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 2.61% rise in the Zacks Consensus EPS estimate. Enterprise Products Partners is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Enterprise Products Partners has a Forward P/E ratio of 12.8 right now. Its industry sports an average Forward P/E of 14.68, so one might conclude that Enterprise Products Partners is trading at a discount comparatively.

One should further note that EPD currently holds a PEG ratio of 1.42. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Oil and Gas - Production Pipeline - MLB stocks are, on average, holding a PEG ratio of 2.08 based on yesterday's closing prices.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 55, finds itself in the top 23% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Enterprise Products Partners (EPD - Free Report) Enterprise Products Partners L.P. owns and operates a diversified midstream network across natural gas, natural gas liquids, crude oil, petrochemicals and refined products. The partnership provides gathering, treating, processing, transportation, fractionation, storage and terminaling services through an integrated asset base that links major United States supply basins to domestic demand centers and international markets.

EPD is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. EPD has a Growth Style Score of B, forecasting year-over-year earnings growth of 13.9% for the current fiscal year.

Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.05 to $3.03 per share. EPD also boasts an average earnings surprise of +1.5%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, EPD should be on investors' short list.

Albert wrote in this week about a problem that can sometimes plague your investments. His email started, “Sometimes I like something that is too complicated for me to handle the taxes.”

I didn’t have to read any further to guess he was talking about the tax treatment of one of my favorite stocks—Enterprise Products Partners (EPD). The oil pipeline company is structured as a master limited partnership (MLP) which means you will receive a K-1 instead of a 1099 for tax reporting.

MLPs must generate at least 90% of their income from qualifying natural resource, energy, or real estate sources. They then pass this through to their shareholders, which are actually called unitholders. You’re not really holding shares here. Instead, you are one of many limited partners in the structure. A limited partner is one that buys units to provide capital while the general partners manage daily operations.

K-1s exist for entities like this. There are three types:

Form 1065 for partnerships Form 1120-S for S corporations Form 1041 for estates and trusts All three pass the tax liability through to their owners or beneficiaries. A K-1 allows them to report each person’s specific share of income, deductions, and other items. That creates the tax problem.

Too Much Information The K-1 is longer and more layered than most of the other tax documents you’ll receive. That’s because it’s essentially a summary of the whole business’ taxes, which creates the first hurdle.

Many investors don’t want to deal with a K-1 because it’s not issued until the first week in March. You have to wait for the MLP to gather all of its tax documents to then pass that information on to you. So, if you’re someone who likes to file early, this could be an easy reason not to invest in MLPs.

Once you get the K-1, you’ll see it is split into 3 sections.

Parts I and II (the left side) are the easier ones to input. They cover information about the partnership, the partner (you), and your position. Part III, however, is where you’ll start to see entries that aren’t a single number. Some of them are sub-lettered with multiple entries. And some boxes will show “STMT” which requires you to enter a whole statement worth of information. Boxes 13, 18, and 20 usually require the most attention.

Additionally, you do not want to put an MLP in a tax-advantaged account. Owning these shares makes you part owner and can generate unrelated business taxable income (UBIT) which you will have to pay taxes on.

Some Common Confusion Unfortunately, I do not have a manual or step-by-step guide to help you complete a K-1. Each person’s tax situation will vary, and each tax preparation software looks a little different. However, I do have a few tips if you are going to add EPD or another MLP to your portfolio.

A reminder: This is for general education purposes only and not intended, nor be considered, as tax advice. I am not a tax professional.

One of the most common confusions started in 2021 when the IRS mandated K-3s for MLPs. The K-3 breaks down information on the K-1 geographically. This has created a situation where box 16 is checked but sometimes the K-3 isn’t available until much later in the year.

EPD is a company that operates solely in the US, so a K-3 doesn’t really give any new data. Unless you are a foreign unitholder or intend to claim credit for foreign taxes paid, you don’t need to wait for this data. This is different if the MLP has foreign operations.

Another confusion is that some tax software will have you enter a box and then ask you follow-up questions. Now you have to make a judgment call instead of simply entering the information on the page.

One example is a page usually labeled “Describe the Partnership” or “Entity Questions.” These answers determine your loss limits, so you need to answer them accurately. If you hold the shares in your brokerage account, you’ll identify the partnership as a PTP or publicly traded partnership. And you’ll probably also select “all of my investment activity is at risk.” But there are other options on these screens which are dependent on your situation.

If you’re not intimidated by waiting until the first week of March to get your tax documents or completing the extra paperwork, then these types of investments might be for you.

If this all seems like an extra headache that you just don’t need, I’d look for ETFs such as the Alerian MLP ETF (AMLP) or Global X MLP & Energy Infrastructure ETF (MLPX) to get your pipeline exposure.

For more income, now and in the future,

Kelly Green

Originally published September 2, 2026

For more news, information, and strategy, visit ETF Trends.

Not every high-yield asset belongs in a Roth IRA, and parking the wrong one there can saddle the account itself with a surprise tax bill. Knowing which popular income payers to keep out changes the math on your entire placement…

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Every April, high-yield investors in the 24% federal bracket quietly write a check to the IRS that they never had to send. A $500,000 portfolio spinning off roughly 8% in blended yield hands the government $9,600 per year in ordinary income tax when it sits in a taxable brokerage account.

Inside a Roth, that same portfolio hands over zero. The stock selection determines whether that gap actually shows up, and one popular high-yield asset can turn the Roth advantage into a headache.

1 High-Yield Asset to Keep Out of Your Roth Enterprise Products Partners (NYSE:EPD | EPD Price Prediction) is the classic example. The midstream giant carries a market cap of roughly $84.5 billion, a current yield of 5.67%, and a 56-cent quarterly distribution that has climbed steadily from $0.515 in early 2024. The catch: EPD is structured as a master limited partnership. It issues a K-1 rather than a 1099, and MLP income held inside an IRA can generate Unrelated Business Taxable Income (UBTI). Above a modest annual UBTI threshold, the IRA itself, not the account holder, can owe tax and have to file Form 990-T.

MLP distributions already receive favorable tax treatment in a taxable account because much of the payout is treated as return of capital. Putting EPD in a Roth trades away that natural tax shelter and adds paperwork risk. This is not tax advice, and readers with existing MLP positions should confirm the specifics with a tax professional.

3 Names That Belong in the Roth The stocks that gain the most from Roth placement are the ones paying ordinary, non-qualified income: REITs and BDCs.

1. Realty Income (NYSE:O) yields 5.27%, pays monthly, and just declared its 674th consecutive common stock monthly dividend. REIT dividends are ordinary income in a taxable account. In a Roth, they compound tax-free.

2. Ares Capital (NASDAQ:ARCC) yields 9.64% at a 48-cent quarterly regular dividend, backed by a $29.3 billion portfolio and 68 consecutive quarters of stable-to-rising payouts. BDC distributions are taxed as ordinary income at your marginal rate outside a Roth.

3. Main Street Capital (NYSE:MAIN) pays a 26-cent monthly regular dividend raised 3.9% from the fourth quarter of 2025 plus a 30-cent supplemental, its 20th consecutive quarterly supplemental. Yield sits at 5.54%.

Tax Delta at the 24% Bracket Anchor the math to a $500,000 position blended to an 8% yield across those three names. Gross annual income: $40,000. Held in a taxable account at the 24% bracket, the after-tax figure drops to roughly $30,400. Held in a Roth, you keep the full $40,000. That is a $9,600 annual Roth advantage, or close to $96,000 over ten years before any reinvestment.

Bracket Multiplier by Income Level The same $40,000 dividend stream produces very different net figures depending on where you sit in the federal ordinary-income brackets:

Bracket Tax Cost (Taxable) Net After Tax Roth Advantage 22% $8,800 $31,200 $8,800 24% $9,600 $30,400 $9,600 32% $12,800 $27,200 $12,800 37% $14,800 $25,200 $14,800 A 37% bracket investor loses nearly $15,000 a year on the same portfolio a 22% bracket investor loses under $9,000 on. The higher the bracket, the more urgent the placement decision.

Compounding Cost Most Readers Miss The $9,600 annual delta at 24% compounds year after year. Reinvested tax-free at the same yield inside the Roth, that delta becomes a permanent second income stream feeding on itself. Even ignoring any price appreciation, that is roughly $96,000 over ten years and materially more over twenty. Held outside a Roth, that money never existed for you. It was always the IRS’s.

What to Do Next If you own any BDC or net-lease REIT in a taxable account, calculate the annual tax cost at your bracket before your next tax filing. Before ruling out a Roth conversion on cost grounds, run the numbers on the specific ordinary-income payers you already hold. The quiet years between your last paycheck and your first RMD are often when conversions are cheapest, a window we sized up in a free guide here: The Roth Window. The long-run delta often dwarfs the conversion bill. If you own EPD or another MLP inside an IRA today, review your K-1s and confirm UBTI exposure with a tax professional before adding to the position. Contact [email protected] for any questions or corrections.

Midstream energy infrastructure has demonstrated notable defensiveness during a period of heightened macro volatility. This resilience is supported by durable cash flow characteristics that distinguish the segment from the broader energy sector.

Key Takeaways

Midstream energy infrastructure outperformed broader energy in Q2, with midstream and MLPs gaining 1% while crude oil plunged over 30%. 
The Alerian Midstream Energy Select Index (AMEI) yields 4.5% and the Alerian MLP Infrastructure Index (AMZI) yields 6.4%, underpinned by consistent EBITDA growth and payout stability.
Midstream operators protect investors against inflation through annual PPI-linked FERC adjustments and take-or-pay pipeline contracts.

The midstream segment showed particular defensiveness during the second quarter, as oil prices dropped significantly amid ceasefire negotiations in the Middle East conflict. Broad midstream and MLPs each gained roughly 1%, while broader energy fell double digits and oil plunged over 30%. This resilience can be attributed to fee-based, long-term business models that provide visibility into future revenues and insulation from commodity price swings, Kyle Richards, energy research analyst at VettaFi, said during a recent webcast. 

Income Potential & Yields in Midstream Energy MLPs
For investors seeking income, MLPs may be particularly appealing, given attractive yields backed by solid trends for distribution growth. The Alerian MLP Infrastructure Index (AMZI) is yielding 6.4%, and the Alerian Midstream Energy Select Index (AMEI), which is ~75% midstream corporations and ~25% MLPs, is yielding 4.5% as of September 2, outperforming many other income assets including REITs and utilities. 

Investors can access AMZI via the Alerian MLP ETF (AMLP), and AMEI with the Alerian Energy Infrastructure ETF (ENFR). 

See more: Midstream ETFs AMLP and ENFR Announce Q3 Distributions

Free Cash Flow Acceleration & Capital Discipline in Midstream Energy Infrastructure
These yields are not simply a function of price decline but are fundamentally supported by companies’ consistent ability to grow EBITDA and maintain stable fee-based operations, Richards said. Roughly 90% of both AMLP and ENFR holdings have grown their payouts. Furthermore, companies have avoided meaningful dividend cuts since the COVID disruptions in 2021.

Free cash flow generation has accelerated meaningfully since COVID, driven by decreased capital expenditure budgets and greater capital discipline. Since 2023, AMLP holdings have repurchased over $2.5 billion in equity, while ENFR holdings have repurchased nearly $13.5 billion. This reflects a fundamental shift from debt and equity issuance toward shareholder returns, Richards said. Furthermore, leverage ratios have also declined across the space.

Inflation Protection via Take-or-Pay Pipeline Contracts
The cash flow story is further reinforced by inflation-linked contracts. Pipeline tariffs, particularly under FERC jurisdiction for liquids pipelines, are adjusted annually based on the Producer Price Index. 

Beyond FERC-regulated pipelines, most midstream companies include inflation escalators in their long-term take-or-pay contracts. Richards cited Enterprise Products Partners (EPD) as an example of one MLP that has over 90% of its contracts structured this way. Take-or-pay contracts guarantee payment even if a customer is not actively shipping product. MLPs and midstream have outperformed the S&P 500 in seven of nine years when inflation exceeded 3% since 2000.

Additionally, increased export demand for natural gas liquids (NGLs) and liquefied natural gas (LNG), partly driven by Middle East supply disruptions, has provided incremental revenue tailwinds for midstream operators. These structural demand shifts further underpin the sector’s cash flow visibility going forward.

Looking for midstream insights in your inbox? Subscribe here to keep a pulse on midstream investing through our weekly updates.
For more news, information, and analysis, visit the Energy Infrastructure Content Hub.

vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for AMLP, and ENFR for which it receives an index licensing fee. However, AMLP, and ENFR is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of AMLP, and ENFR.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Enterprise Products Partners (EPD - Free Report) Enterprise Products Partners L.P. owns and operates a diversified midstream network across natural gas, natural gas liquids, crude oil, petrochemicals and refined products. The partnership provides gathering, treating, processing, transportation, fractionation, storage and terminaling services through an integrated asset base that links major United States supply basins to domestic demand centers and international markets.

EPD is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Oils-Energy stock. EPD has a Momentum Style Score of B, and shares are up 2.5% over the past four weeks.

Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.05 to $3.03 per share. EPD also boasts an average earnings surprise of +1.5%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, EPD should be on investors' short list.

A disciplined approach to income investing can provide both stability and attractive cash payouts. The Income Method emphasizes diversification across styles, structures, and risk profiles to enhance portfolio resilience. We discuss two investment-grade picks yielding 6%.

Key Takeaways EPD's equivalent pipeline volumes rose 8% to a record 14.7 MMBPD as demand for U.S. energy exports grew.Enterprise Products has $6.5B of organic projects under construction to support Permian and export growth.About 90% of EPD's system-wide LPG export capacity is contracted, supporting volume-driven growth. Enterprise Products Partners L.P. (EPD - Free Report) provides transportation, processing, fractionation, storage and marine terminal services for natural gas, natural gas liquids (“NGLs”), crude oil, petrochemicals and refined products. The partnership primarily generates revenues through long-term contracts under which customers use its midstream infrastructure to transport, process and store hydrocarbons and related products. Strong international demand for U.S. energy benefited EPD in the second quarter of 2026, enabling equivalent pipeline volumes to increase 8% to a record 14.7 million barrels per day (MMBPD) and marine terminal volumes to rise 33% to 2.8 MMBPD.

The leading North American midstream operator’s growth prospects are supported by $6.5 billion of organic projects under construction, including assets designed to accommodate Permian production growth and international demand for U.S. NGLs. The Enterprise Hydrocarbons Terminal expansion is expected to add 300 thousand barrels per day (MBPD) of liquefied petroleum gas (“LPG”) loading capacity by the fourth quarter of 2026, strengthening Enterprise Products’ ability to handle additional export volumes. Management noted increased interest from countries historically dependent on Middle Eastern supplies that are seeking to shift part of their long-term energy sourcing toward the United States.

Ethane exports represent another potential growth catalyst for Enterprise Products, supported by expanding vessel availability and higher customer liftings under existing contracts. The partnership has roughly 90% of its system-wide LPG export capacity contracted, limiting its exposure to potential weakness in terminal rates as new industry capacity enters the market. Overall, expanding U.S. energy exports are expected to support higher throughput across EPD’s integrated infrastructure network and strengthen its volume-driven growth prospects over the coming years.

Two Other Midstream Players Leveraging Export GrowthApart from Enterprise Products Partners, rising U.S. energy exports are creating growth opportunities for other large midstream operators with extensive pipeline and export infrastructure, including Kinder Morgan, Inc. (KMI - Free Report) and Energy Transfer LP (ET - Free Report) .

Kinder Morgan is positioned to benefit from increasing U.S. LNG exports through its extensive natural gas pipeline network. In the second quarter of 2026, KMI’s natural gas transportation volumes increased 7%, partly reflecting higher LNG deliveries on the Tennessee Gas Pipeline and increased exports to Mexico. Kinder Morgan noted that rising LNG exports, power demand and industrial growth are increasing the value of its highly utilized infrastructure and creating additional investment opportunities. KMI expects its growth projects to generate additional cash flow as demand for natural gas infrastructure expands.

Energy Transfer is benefiting from stronger overseas demand for U.S. hydrocarbons, particularly NGLs. In the second quarter of 2026, ET achieved record NGL exports, which increased 25%, while elevated shipment levels bolstered terminal-services margins at both the Nederland and Marcus Hook facilities. Energy Transfer is preparing for additional export growth through its fully subscribed Nederland expansion, which is expected to add 240 MBPD of ethane export capacity and 55 MBPD of LPG capacity. ET is expanding its Mont Belvieu-to-Nederland pipeline and adding two NGL ship docks, strengthening Energy Transfer’s ability to capitalize on rising U.S. energy exports.

EPD’s Price Performance, Valuation & EstimatesEnterprise Products shares have risen 23.4% over the past year compared with the industry’s 24.4% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, EPD trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 11.12X. This is below the broader industry average of 11.37X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for EPD's fourth-quarter 2026 earnings has been unchanged over the past seven days. Meanwhile, estimates for third-quarter and full-year 2026 earnings have seen upward revisions.

Image Source: Zacks Investment Research

EPD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Most high-yield investors assume a Roth automatically improves every position they move into it, but one popular income asset can trigger a tax bill inside the account itself, and owning it there may cost more than keeping it out.

Every April, high-yield investors in the 24% federal bracket quietly write a check to the IRS that they never had to send. A $500,000 portfolio spinning off roughly 8% in blended yield hands the government $9,600 per year in ordinary income tax when it sits in a taxable brokerage account. Inside a Roth, that same portfolio hands over zero. The stock selection determines whether that gap actually shows up, and one popular high-yield asset can turn the Roth advantage into a headache.

One High-Yield Asset to Keep Out of Your Roth Enterprise Products Partners (NYSE:EPD | EPD Price Prediction) is the classic example. The midstream giant carries a market cap of roughly $84.5 billion, a current yield of 5.76%, and a $0.56 quarterly distribution that has climbed steadily from $0.515 in early 2024. The catch: EPD is structured as a master limited partnership. It issues a K-1 rather than a 1099, and MLP income held inside an IRA can generate Unrelated Business Taxable Income (UBTI). Above a modest annual UBTI threshold, the IRA itself, not the account holder, can owe tax and have to file Form 990-T.

MLP distributions already receive favorable tax treatment in a taxable account because much of the payout is treated as return of capital. Putting EPD in a Roth trades away that natural tax shelter and adds paperwork risk. This is not tax advice, and readers with existing MLP positions should confirm the specifics with a tax professional.

Three Names That Belong in the Roth The stocks that gain the most from Roth placement are the ones paying ordinary, non-qualified income: REITs and BDCs.

Realty Income (NYSE:O) yields 5.15%, pays monthly, and just declared its 674th consecutive common stock monthly dividend. REIT dividends are ordinary income in a taxable account. In a Roth, they compound tax-free. Ares Capital (NASDAQ:ARCC) yields 9.63% at a $0.48 quarterly regular dividend, backed by a $29.3 billion portfolio and 68 consecutive quarters of stable-to-rising payouts. BDC distributions are taxed as ordinary income at your marginal rate outside a Roth. Main Street Capital (NYSE:MAIN) pays a $0.265 monthly regular dividend raised 3.9% from the fourth quarter of 2025 plus a $0.30 supplemental, its 20th consecutive quarterly supplemental. Yield sits at 5.29%. Tax Delta at the 24% Bracket Anchor the math to a $500,000 position blended to an 8% yield across those three names. Gross annual income: $40,000. Held in a taxable account at the 24% bracket, the after-tax figure drops to roughly $30,400. Held in a Roth, you keep the full $40,000. That is a $9,600 annual Roth advantage, or close to $96,000 over ten years before any reinvestment.

Bracket Multiplier by Income Level The same $40,000 dividend stream produces very different net figures depending on where you sit in the federal ordinary-income brackets:

Bracket Tax Cost (Taxable) Net After Tax Roth Advantage 22% $8,800 $31,200 $8,800 24% $9,600 $30,400 $9,600 32% $12,800 $27,200 $12,800 37% $14,800 $25,200 $14,800 A 37% bracket investor loses nearly $15,000 a year on the same portfolio a 22% bracket investor loses under $9,000 on. The higher the bracket, the more urgent the placement decision.

Compounding Cost Most Readers Miss The $9,600 annual delta at 24% compounds year after year. Reinvested tax-free at the same yield inside the Roth, that delta becomes a permanent second income stream feeding on itself. Even ignoring any price appreciation, that is roughly $96,000 over ten years and materially more over twenty. Held outside a Roth, that money never existed for you. It was always the IRS’s.

What to Do Next If you own any BDC or net-lease REIT in a taxable account, calculate the annual tax cost at your bracket before your next tax filing. Before ruling out a Roth conversion on cost grounds, run the numbers on the specific ordinary-income payers you already hold. The quiet years between your last paycheck and your first RMD are often when conversions are cheapest, a window we sized up in a free guide here: The Roth Window. The long-run delta often dwarfs the conversion bill. If you own EPD or another MLP inside an IRA today, review your K-1s and confirm UBTI exposure with a tax professional before adding to the position. Contact [email protected] for any questions or corrections.

Allworth Financial LP lessened its stake in shares of Enterprise Products Partners L.P. (NYSE:EPD – Free Report) by 28.1% in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 81,212 shares of the oil and gas producer’s stock after selling 31,798 shares during the period. Allworth Financial LP’s holdings in Enterprise Products Partners were worth $2,985,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors have also recently made changes to their positions in the company. Palisade Asset Management LLC purchased a new position in Enterprise Products Partners in the third quarter worth about $31,000. N.E.W. Advisory Services LLC bought a new stake in shares of Enterprise Products Partners in the 2nd quarter valued at approximately $37,000. Bravera Wealth increased its position in shares of Enterprise Products Partners by 666.7% during the 2nd quarter. Bravera Wealth now owns 1,035 shares of the oil and gas producer’s stock valued at $38,000 after purchasing an additional 900 shares during the last quarter. BOK Financial Private Wealth Inc. purchased a new stake in Enterprise Products Partners during the 2nd quarter valued at $48,000. Finally, West Paces Advisors Inc. bought a new stake in Enterprise Products Partners in the second quarter worth $55,000. 26.07% of the stock is owned by institutional investors.

Analyst Ratings Changes EPD has been the topic of a number of analyst reports. Citigroup reiterated a “buy” rating and set a $44.00 price objective (up from $39.00) on shares of Enterprise Products Partners in a research report on Friday, May 1st. Stifel Nicolaus boosted their target price on Enterprise Products Partners from $41.00 to $42.00 and gave the company a “buy” rating in a research report on Wednesday, April 29th. Truist Financial increased their price target on Enterprise Products Partners from $36.00 to $40.00 and gave the stock a “hold” rating in a report on Monday, May 4th. TD Cowen restated a “hold” rating and set a $38.00 price objective (down from $39.00) on shares of Enterprise Products Partners in a report on Monday, August 3rd. Finally, JPMorgan Chase & Co. increased their target price on Enterprise Products Partners from $41.00 to $42.00 and gave the stock a “neutral” rating in a research note on Thursday, July 9th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Enterprise Products Partners has a consensus rating of “Moderate Buy” and an average target price of $40.00.

Read Our Latest Analysis on EPD Shares of NYSE EPD opened at $38.12 on Friday. The company has a debt-to-equity ratio of 1.00, a quick ratio of 0.66 and a current ratio of 0.93. The firm has a market capitalization of $82.32 billion, a price-to-earnings ratio of 13.24, a PEG ratio of 1.27 and a beta of 0.49. The stock has a 50 day moving average price of $37.67 and a 200 day moving average price of $37.51. Enterprise Products Partners L.P. has a 52-week low of $30.01 and a 52-week high of $40.17.

Enterprise Products Partners (NYSE:EPD – Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The oil and gas producer reported $0.84 EPS for the quarter, topping the consensus estimate of $0.75 by $0.09. The company had revenue of $18.27 billion for the quarter, compared to the consensus estimate of $13.69 billion. Enterprise Products Partners had a return on equity of 20.67% and a net margin of 10.79%.Enterprise Products Partners’s quarterly revenue was up 60.8% on a year-over-year basis. During the same period last year, the business posted $0.66 EPS. Sell-side analysts expect that Enterprise Products Partners L.P. will post 3.01 earnings per share for the current year.

Enterprise Products Partners Increases Dividend The company also recently declared a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Friday, July 31st were paid a dividend of $0.56 per share. This is an increase from Enterprise Products Partners’s previous quarterly dividend of $0.55. This represents a $2.24 annualized dividend and a dividend yield of 5.9%. The ex-dividend date was Friday, July 31st. Enterprise Products Partners’s payout ratio is 77.78%.

About Enterprise Products Partners (Free Report)

Enterprise Products Partners L.P. (NYSE: EPD) is a Houston-based master limited partnership that provides midstream energy services across North America. The company owns and operates an extensive network of pipelines, storage facilities, processing plants and export terminals that transport and handle natural gas, natural gas liquids (NGLs), crude oil and refined and petrochemical products. Its core activities include gathering and transportation, fractionation of NGLs, natural gas processing, crude oil and condensate pipelines, and marine and terminal services that enable domestic distribution and exports.

Enterprise serves a diverse set of customers including producers, refiners, petrochemical companies, marketers and end users.

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Stock to Watch: Enterprise Products Partners (EPD - Free Report) Enterprise Products Partners L.P. owns and operates a diversified midstream network across natural gas, natural gas liquids, crude oil, petrochemicals and refined products. The partnership provides gathering, treating, processing, transportation, fractionation, storage and terminaling services through an integrated asset base that links major United States supply basins to domestic demand centers and international markets.

EPD is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. EPD has a Growth Style Score of B, forecasting year-over-year earnings growth of 13.2% for the current fiscal year.

Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.03 to $3.01 per share. EPD boasts an average earnings surprise of +1.5%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, EPD should be on investors' short list.

I reiterate my Strong Buy on Western Midstream: the April call worked, returning ~25%, but the growth-led thesis ahead still stands. The rerating to EPD's multiple is largely done, so returns from here rely on 7-8% EBITDA growth, not multiple expansion. Growth alone supports ~15% returns at a flat multiple; the compressed ~7.6% yield matters mainly for fresh income-only entries.

Key Takeaways Enterprise Products' Permian gas-processing inlet volumes rose 14% to 4.3 Bcf/d in the second quarter.New plants through 2029 are poised to add 300 MMcf/d of processing capacity & 45,000 Bbl/d of liquids each.EPD's integrated system captures fees across gathering, processing, transportation, fractionation and exports. Enterprise Products Partners L.P. (EPD - Free Report) is building a more integrated Permian value chain that captures fees across gathering, processing, transportation, fractionation and exports. Permian gas-processing inlet volumes rose 14% to 4.3 billion cubic feet per day in second-quarter 2026, supporting demand for additional midstream capacity. EPD is adding processing plants with a capacity of 300 million cubic feet per day (MMcf/d) each through 2029, including Athena, Athena 2, Midland Plant 11, Delaware Plant 12 and Delaware Plant 13.

Each new plant will extract roughly 45,000 barrels per day (Bbl/d) of liquids, which can move through EPD’s Shin Oak and Bahia pipelines into its downstream system. With Shin Oak and Bahia operating at about 86% of capacity, higher Y-grade volumes from Plant 11 and Plant 13 are poised to improve utilization of existing infrastructure. EPD is expanding Bahia by 400 thousand barrels per day (MBbls/d) and 92 miles while adding the 150-MBbls/d Frac 15, creating more downstream capacity to handle growing Permian NGL production.

This integrated strategy will allow Enterprise Products to monetize incremental Permian production at multiple stages rather than relying on a single processing fee. Since 2022, gas-processing inlet and equivalent pipeline transportation volumes have witnessed roughly 8% CAGR, while natural gas liquid (NGL) fractionation and marine-terminal volumes increased about 11% and 13%, respectively. With management targeting roughly 10% EBITDA growth from 2025 to 2027, continued Permian growth is expected to boost utilization, improve returns on new and existing assets and strengthen EPD’s long-term cash-flow growth.

KMI & MPLX Focused on Deepening Their Permian Value ChainsOther than Enterprise Products, Kinder Morgan, Inc. (KMI - Free Report) and MPLX LP (MPLX - Free Report) are investing to deepen their Permian value chains and capture more fee-based revenues as production grows.

Kinder Morgan is expanding its Permian network by increasing natural gas takeaway capacity through projects such as the Gulf Coast Express expansion, which added about 570 MMcf/d of transportation capacity from the Permian to South Texas. The expansion quickly filled after entering service, highlighting strong producer demand and allowing KMI to earn additional pipeline fees while reducing transportation bottlenecks. KMI is advancing its Permian Link project to connect Permian gas with storage and growing power demand, creating another long-term opportunity to monetize basin volumes.

MPLX is strengthening its Permian-to-Gulf Coast integrated value chain by expanding gas processing, sour-gas treating and NGL transportation capacity to meet rising producer demand. The company is increasing Permian sour-gas treating capacity to more than 400 MMcf/d, expanding the BANGL NGL pipeline to 300,000 barrels per day and advancing the 2.5-Bcf/d Blackcomb pipeline, creating greater connectivity from the Permian to Gulf Coast markets. By integrating processing, pipelines, fractionation and export infrastructure, MPLX can capture more value from growing Permian volumes while supporting long-term EBITDA growth and higher utilization across its midstream network.

EPD’s Price Performance, Valuation & EstimatesEnterprise Products shares have gained 23% over the past year compared with the industry’s 24% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, EPD trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 11.02X. This is below the broader industry average of 11.26X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for EPD's fourth-quarter 2026 earnings has been unchanged over the past seven days. Meanwhile, estimates for third-quarter 2026 and full-year 2026 earnings have seen upward revisions.

Image Source: Zacks Investment Research

EPD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Auxano Advisors LLC bought a new stake in Enterprise Products Partners L.P. (NYSE:EPD – Free Report) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm bought 12,956 shares of the oil and gas producer’s stock, valued at approximately $476,000.

Other hedge funds have also bought and sold shares of the company. Auto Owners Insurance Co grew its position in Enterprise Products Partners by 3,106.0% in the fourth quarter. Auto Owners Insurance Co now owns 32,060,000 shares of the oil and gas producer’s stock worth $102,784,000 after acquiring an additional 31,060,000 shares in the last quarter. BlackRock Inc. purchased a new stake in Enterprise Products Partners during the second quarter valued at about $255,325,000. Goldman Sachs Group Inc. raised its position in Enterprise Products Partners by 12.0% during the fourth quarter. Goldman Sachs Group Inc. now owns 18,163,343 shares of the oil and gas producer’s stock valued at $582,317,000 after purchasing an additional 1,940,583 shares in the last quarter. Deutsche Bank AG bought a new stake in Enterprise Products Partners during the second quarter worth about $67,915,000. Finally, Corient Private Wealth LLC lifted its stake in Enterprise Products Partners by 119.4% during the second quarter. Corient Private Wealth LLC now owns 2,414,035 shares of the oil and gas producer’s stock worth $74,859,000 after purchasing an additional 1,313,976 shares during the last quarter. 26.07% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth A number of analysts recently weighed in on the company. TD Cowen restated a “hold” rating and issued a $38.00 target price (down from $39.00) on shares of Enterprise Products Partners in a research report on Monday, August 3rd. Stifel Nicolaus increased their price target on shares of Enterprise Products Partners from $41.00 to $42.00 and gave the company a “buy” rating in a research report on Wednesday, April 29th. Truist Financial lifted their price target on shares of Enterprise Products Partners from $36.00 to $40.00 and gave the stock a “hold” rating in a research note on Monday, May 4th. UBS Group reaffirmed a “buy” rating and issued a $45.00 price objective on shares of Enterprise Products Partners in a research note on Wednesday, June 17th. Finally, Morgan Stanley set a $40.00 target price on shares of Enterprise Products Partners and gave the company an “underweight” rating in a report on Tuesday, July 21st. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $39.93.

Check Out Our Latest Report on Enterprise Products Partners Enterprise Products Partners Price Performance EPD opened at $38.61 on Tuesday. The company has a debt-to-equity ratio of 1.00, a current ratio of 0.93 and a quick ratio of 0.66. The stock’s 50 day simple moving average is $37.60 and its 200 day simple moving average is $37.41. The firm has a market cap of $83.38 billion, a price-to-earnings ratio of 13.41, a PEG ratio of 1.30 and a beta of 0.49. Enterprise Products Partners L.P. has a 1 year low of $30.01 and a 1 year high of $40.17.

Enterprise Products Partners (NYSE:EPD – Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The oil and gas producer reported $0.84 earnings per share for the quarter, beating the consensus estimate of $0.75 by $0.09. Enterprise Products Partners had a return on equity of 20.67% and a net margin of 10.79%.The firm had revenue of $18.27 billion during the quarter, compared to the consensus estimate of $13.69 billion. During the same quarter in the previous year, the company posted $0.66 earnings per share. The business’s revenue was up 60.8% on a year-over-year basis. As a group, analysts predict that Enterprise Products Partners L.P. will post 2.98 earnings per share for the current year.

Enterprise Products Partners Increases Dividend The company also recently declared a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Friday, July 31st were given a dividend of $0.56 per share. This represents a $2.24 annualized dividend and a yield of 5.8%. The ex-dividend date of this dividend was Friday, July 31st. This is an increase from Enterprise Products Partners’s previous quarterly dividend of $0.55. Enterprise Products Partners’s dividend payout ratio is currently 77.78%.

Enterprise Products Partners Company Profile (Free Report)

Enterprise Products Partners L.P. (NYSE: EPD) is a Houston-based master limited partnership that provides midstream energy services across North America. The company owns and operates an extensive network of pipelines, storage facilities, processing plants and export terminals that transport and handle natural gas, natural gas liquids (NGLs), crude oil and refined and petrochemical products. Its core activities include gathering and transportation, fractionation of NGLs, natural gas processing, crude oil and condensate pipelines, and marine and terminal services that enable domestic distribution and exports.

Enterprise serves a diverse set of customers including producers, refiners, petrochemical companies, marketers and end users.

Featured Stories Five stocks we like better than Enterprise Products Partners Commodities Are Booming, But These 3 ETFs Tell Different Stories 3 Active ETFs Making Big Moves in August This ETF Is Outperforming by Avoiding the S&P 500’s Biggest Problem Birkenstock Beats the Skeptics—But Not on EPS Want to see what other hedge funds are holding EPD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Enterprise Products Partners L.P. (NYSE:EPD – Free Report).

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Sixty-four thousand eight hundred dollars a year. That is what $5,400 per month works out to, and it happens to be roughly what a comfortable retirement costs in most of the country once housing is paid off. The question is what portfolio can throw off that check every month without you selling a single share.

The math is unforgiving. $64,800 divided by $920,000 equals a blended yield of just above 7%. That number tells you exactly where on the risk spectrum you are standing. It is well above the 4.7% 10-year Treasury yield, which means you are getting paid a real premium, and you are taking real risk to earn it.

The Three Yield Tiers, With Real Capital Requirements Conservative tier (3% to 4%). This is the dividend growth sleeve, anchored by broad dividend ETFs like Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD), whose top positions include QUALCOMM at about 7%, Texas Instruments at about 6%, and UnitedHealth Group at about 5% of net assets. At 3.5%, replacing $64,800 needs roughly $1,851,000 in capital. The upside: dividend growth compounds and principal tends to appreciate. The catch: you need almost twice the capital of the aggressive tier.

Moderate tier (5% to 7%). This is where the $920,000 story lives. Names like Realty Income (NYSE:O | O Price Prediction), Enterprise Products Partners (NYSE:EPD), and Altria (NYSE:MO) sit in this range. Realty Income currently yields around 5.2% with a $3.252 annualized dividend and 115 consecutive quarterly increases. Enterprise Products yields roughly 5.8%, with a Q3 2026 distribution of $0.56 per unit, up from $0.55. Altria yields around 6.5% off a $1.06 quarterly dividend. At a 6% blended average, $64,800 requires $1,080,000.

Aggressive tier (8% to 12%). Business development companies live here. Ares Capital currently yields 9.6% and paid a $0.48 quarterly dividend, unchanged for eight consecutive quarters. Main Street Capital pays a $0.265 monthly regular dividend plus a $0.300 quarterly supplemental, totaling $4.31 over the trailing 12 months. At a 10% blend, replacing $64,800 needs just $648,000. The tradeoff is the one investors keep learning the hard way: BDC distributions can be cut in recessions, and net asset values fluctuate with credit conditions.

Why 7% Is the Sweet Spot for $920,000 A blended sleeve that mixes Realty Income at roughly 5%, Enterprise Products near 6%, Altria near 7%, Main Street near 7% to 8%, and Ares Capital near 9%, with a slug of SCHD as the growth anchor, produces something close to a 7% weighted yield without leaning on leverage or covered-call NAV erosion.

Coverage matters more than yield. Realty Income’s 2026 AFFO guidance of $4.44 to $4.45 per share comfortably covers the $3.25 dividend. Enterprise Products reported 1.9x distributable cash flow coverage last quarter. Main Street beat consensus at $1.04 adjusted EPS versus $0.96. Those are the numbers that decide whether $5,400 keeps hitting the account next year.

The Insight Most Readers Miss Here is the counterintuitive part. A 3.5% yield growing 8% annually doubles the income in nine years. A 10% yield that stays flat, or drifts down as principal erodes, is worth less in real dollars every year. With CPI running at a percentile rank of 81.8 over the past 12 months, flat distributions quietly lose ground. The 7% blended portfolio splits the difference: enough current income to live on, enough growth-oriented names to protect purchasing power.

What to Do Next Calculate your actual spending, not your salary. Many readers targeting $5,400 monthly actually need less once they subtract payroll taxes, retirement contributions, and commuting costs from their working-years budget. Compare 10-year total returns. SCHD returned 236% over 10 years, versus Ares Capital’s 236%. Nearly identical, but the paths are wildly different. Model the tax location. Enterprise Products issues K-1s, and BDC and REIT distributions are ordinary income. Keep them in IRAs when possible; hold SCHD-style qualified dividends in taxable. One caveat worth stating plainly: a 7% yield carries real risk. BDCs cut dividends in credit downturns, MLPs can trim distributions when energy capex cycles turn, and REIT prices swing hard with the 10-year yield. The $920,000 works only if the underlying businesses keep earning what they pay out.

Contact [email protected] for any questions or corrections.

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Crude has been the trade of 2026, with the United States Oil Fund (NYSEARCA:USO) up 86% year-to-date as Middle East disruptions and OPEC dynamics have squeezed supply. Investors seeking energy exposure without directly riding the futures curve have leaned on the VanEck Energy Income ETF (NYSEARCA:EINC), a midstream-heavy fund that pays income from pipeline operators rather than betting on the barrel.

Year to date, EINC has returned 24.54% with a 4.0% distribution yield. For an investor looking for fee-based cash flow without daily oil volatility, that performance has been reasonable enough. A closer look at the fund’s holdings, however, suggests the same exposure is available more cleanly elsewhere, with one name carrying most of the weight.

What EINC Actually Delivers

The MVIS North America Energy Infrastructure index is what EINC tracks, holding a concentrated basket of pipeline and storage names. The top 10 holdings account for 59.21% of assets, with Enbridge, Williams Companies, TC Energy, and Kinder Morgan among the largest weights.

Fund assets total $684.21 million, and the expense ratio is 0.46%. That fee is modest for a specialty ETF, though it still represents a recurring toll on top of what the underlying companies already collect. On a $50,000 position, that works out to roughly $230 annually going to the fund sponsor before any distributions reach the investor.

The bigger issue is diversification cost. Midstream is a small universe. Owning 25 names blends the strongest fee-based operators with weaker payers and adds Canadian withholding tax exposure on names like Enbridge and TC Energy. An investor wanting toll-road economics can get a purer version by holding one or two of the largest operators directly.

The Direct Route: Enterprise Products Partners
Enterprise Products Partners (NYSE:EPD | EPD Price Prediction) reported Q2 2026 revenue of $18.27 billion, up 60.8% year over year, with adjusted EBITDA of $2.83 billion, a 17% increase. Operational distributable cash flow hit $2.3 billion, providing 1.9x coverage of the $0.56 quarterly distribution. With that coverage in place, EPD is paying out roughly half of what it generates and retaining the rest for growth capex and buybacks, insulating the distribution from commodity swings.

The forward annualized distribution of $2.24 per unit against a recent price of $37.75 works out to a yield in the mid-5% range, above EINC’s 4.0%, with no fund-level expense drag. EPD has raised its distribution for 27 consecutive years and returned 23.19% year to date, essentially matching EINC while offering higher payout and $6.5 billion in growth projects under construction tied to LNG and NGL exports.

The IRA-Friendly Version: Kinder Morgan
K-1 tax forms are issued by EPD and Energy Transfer, and they can also trigger UBTI issues within retirement accounts. For an IRA or Roth, Kinder Morgan (NYSE:KMI) is the cleaner fit, since it is a C corp that issues a standard 1099. Second quarter delivered EPS of $0.37, an 18.29% beat, and management raised full year guidance to more than 5% above the $8.60 billion adjusted EBITDA budget. The $9.6 billion project backlog sits at 92% natural gas, with over 60% tied to power generation and data center demand, both of which are indifferent to WTI prices.

At a recent price of $30.85, KMI pays $1.19 in annualized dividends, which works out to a yield near 3.9%. That C corp wrapper trades a slightly lower headline yield in exchange for tax simplicity. Sitting between the two is Energy Transfer (NYSE:ET), which delivered a 60.41% EPS beat in the second quarter and raised its distribution for the 19th consecutive quarter to $0.34, though it carries the same K-1 friction as EPD.

Tradeoffs Worth Naming
The swap carries tradeoffs. EINC’s 25-name basket smooths out any single-operator misstep, and moving to one or two direct holdings concentrates counterparty and regulatory risk. In a taxable account, selling EINC at a gain of roughly 24% YTD locks in a capital gain. K-1 forms add filing complexity for EPD or ET holders, though most tax software handles them.

Making the Call
An investor holding EINC purely for midstream toll-road economics can capture similar exposure by owning EPD outright in a taxable account, or KMI in an IRA, and keeping the 46 basis points that would otherwise go to the fund. A split position, roughly 60% EPD and 40% KMI, covers both structures.

Holders valuing broader diversification, including Canadian operators and refined-product names, may prefer to keep EINC. For investors whose goals are fee-based yield, distribution growth, and exposure to the LNG and data-center buildout, the direct route aligns with those criteria.

Contact [email protected] for any questions or corrections.

HOUSTON--(BUSINESS WIRE)--Enterprise Products Partners L.P. (NYSE: EPD) announced today that it will participate in meetings with investors at the following conferences: Citi Natural Resources Conference in Las Vegas, Nevada on Tuesday, August 11, 2026; and TD Cowen Energy Conference in Austin, Texas on Thursday, September 24, 2026 and Friday September 25, 2026. The latest investor deck that may be used to facilitate the investor meetings can be accessed under the Investors tab on the Enterpris.

Enterprise Products Partners (EPD - Free Report) reported $18.27 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 60.8%. EPS of $0.84 for the same period compares to $0.66 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $13.6 billion, representing a surprise of +34.33%. The company delivered an EPS surprise of +12%, with the consensus EPS estimate being $0.75.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Enterprise Products performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

NGL Pipelines & Services net - NGL fractionation volumes per day: 1858 millions of barrels of oil per day versus 1925.72 millions of barrels of oil per day estimated by two analysts on average.NGL Pipelines & Services net - Fee-based natural gas processing per day: 7448 millions of barrels of oil per day versus 7539.53 millions of barrels of oil per day estimated by two analysts on average.NGL Pipelines & Services net - NGL pipeline transportation volumes per day: 4913 millions of barrels of oil per day versus the two-analyst average estimate of 4883.57 millions of barrels of oil per day.Natural Gas Pipelines & Services net - Natural gas transportation volumes per day: 21,048.00 BBtu/D versus 20,887.46 BBtu/D estimated by two analysts on average.Petrochemical Services net - Butane isomerization volumes per day: 115 millions of barrels of oil per day compared to the 121.81 millions of barrels of oil per day average estimate based on two analysts.Petrochemical Services net - Propylene fractionation volumes per day: 134 millions of barrels of oil per day versus 124.37 millions of barrels of oil per day estimated by two analysts on average.Petrochemical Services net - Octane enhancement and related plant sales volumes per day: 37 millions of barrels of oil per day versus 30.47 millions of barrels of oil per day estimated by two analysts on average.NGL Pipelines & Services net - Equity NGL production per day: 230 millions of barrels of oil per day compared to the 226.81 millions of barrels of oil per day average estimate based on two analysts.Gross operating margin- Petrochemical & Refined Products Services- Propylene production and related activities: $154 million versus the two-analyst average estimate of $138.38 million.Gross operating margin- NGL Pipelines & Services: $1.55 billion versus the two-analyst average estimate of $1.52 billion.Gross operating margin- Crude Oil Pipelines & Services: $485 million versus $389.99 million estimated by two analysts on average.Gross operating margin- Natural Gas Pipelines & Services: $556 million versus $462.48 million estimated by two analysts on average.View all Key Company Metrics for Enterprise Products here>>>

Shares of Enterprise Products have returned +2% over the past month versus the Zacks S&P 500 composite's +2.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

For the bulk of the 21st century, buybacks have been corporate America's preferred way of returning capital to shareholders, but S&P 500 dividend growth has been solid, if not awe-inspiring. Savvy equity income investors know that some segments deliver the dividend goods more than others. Those groups include energy stocks.

Taking things a step further, pipeline stocks are known for offering tempting yields and, in many cases, dependable payout growth. Enterprise Products Partners (EPD +0.66%) checks those boxes. Although the third quarter isn't even half over, it's already brought a spate of midstream dividend hikes, with Enterprise Products being one of the guests at that party.

Enterprise Products is one of the dividend leaders in the midstream segment. Image source: Getty Images.

On July 7, the pipeline operator told investors that the dividend it's delivering Aug. 14 represents a 2.8% year-over-year increase. As of Aug. 3, the stock yields 5.8%. That's more than 5x the dividend yield on the S&P 500, and more than double the yield of the largest energy exchange-traded fund (ETF). Fortunately, that's not the end of the good news when it comes to the Enterprise Products dividend.

A dependable pipeline payout Not all oil stocks are cut of the same dividend cloth. In the energy patch, there are low yields, alarmingly high yields, and a lack of dividend clarity. Enterprise Products doesn't wear any of those dubious labels. Twenty-eight consecutive years of increased distributions confirm that this is a dependable equity income name.

Fundamentals indicate that the streak can be extended over the long haul. Income investors assessing Enterprise Products today can benefit from valuable insight provided by the company when it delivered second-quarter earnings on July 30. For those who don't want to get "in the weeds," the dividend is safe. For investors demanding more detail, here goes.

In the June quarter, this pipeline operator generated a record $2.3 billion in operational distributable cash flow (DCF), resulting in coverage of 1.9x the distributions paid during that period. Enterprise Products also retained $1.1 billion of that DCF.

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Here are two more points that dividend investors will like. First, the midstream company repurchased $159 million worth of its stock during Q2. Fewer shares outstanding reduce a company's dividend obligations because dividends aren't paid on retired shares. Second, the 56% payout ratio isn't demanding given rising DCF and declining shares outstanding.

Long-term allure Pipeline stocks, including Enterprise Products, are often calmer than their integrated and exploration and production peers, implying it's advisable to approach midstream equities with long-term perspectives.

With Enterprise Products, investors should consider that approach because the true value of dividend growth is realized over longer holding periods. Additionally, the company is just beginning to realize benefits from new projects, including increased volumes in the pipeline and at marine terminals.

Those volume increases, combined with higher marketing volumes and margins, supported Q2 earnings and cash flow growth. Margin expansion was evident in Enterprise Products' natural gas liquids (NGLs) segment, where the company has industry-leading export infrastructure. That underpins Enterprise Products' status as a wide-moat midstream operator, potentially bolstering the stock's long-term bull case.

The geopolitical conflict in the Middle East has the world on edge. The daily news flow from the region can lead to wide swings in oil and natural gas prices. But the truth is that the energy sector has long been volatile, and today's events aren't all that unusual. Which is why long-term investors should probably focus on reliable dividend-paying energy stocks.

ExxonMobil (XOM -0.97%) has one of the most impressive dividend histories in the energy industry. Close behind is Chevron (CVX +2.35%). For those looking to avoid direct commodity exposure, two of the most reliable high-yield stocks are Enbridge (ENB -1.75%) and Enterprise Products Partners (EPD +1.30%). With yields of up to 5.7%, this group of stocks could be your entry point into energy in August.

Image source: Getty Images.

Get integrated and focus on the dividend checks It actually gets easier to find energy stocks if you start with the premise that the energy sector is volatile. Income-focused investors can immediately look for the strongest companies with the best dividend histories. That very quickly leads to Exxon and Chevron.

From a business model perspective, they are both globally dominant integrated energy companies. They have exposure to the entire energy value chain, including the upstream (production), midstream (pipelines), and the downstream (chemicals and refining). Geographically, they can invest where management believes it can find the highest returns. And, the broad portfolio diversification helps to soften the energy market's normal swings.

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Meanwhile, both companies have the lowest leverage among their integrated energy peers. Exxon's debt-to-equity ratio is around 0.2x, while Chevron's is roughly 0.25x. That gives them the leeway to take on debt during industry downturns to support their businesses and dividends.

The proof of the model here, however, is the reliable, growing dividends Exxon and Chevron have paid. Exxon's 2.6% yield is backed by 43 annual dividend increases. Chevron's 3.7% yield is backed by 38 annual increases. The combination of positives here makes Exxon and Chevron the go-to options for dividend investors seeking direct energy exposure.

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Sidesteping the commodity exposure If the swings in oil and natural gas prices are something you want to avoid, however, you can still find attractive dividend stocks in the energy industry. All you need to do is refine your search to focus on the midstream sector.

These businesses own the energy infrastructure, such as pipelines, that help to move oil and natural gas around the world. They charge fees for the use of their assets, so the volume moving through their systems is more important than the price of the commodities being moved. Two of the best options are Enterprise and Enbridge, which are both industry-leading North American midstream giants.

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Enterprise is more focused on the energy sector. Enbridge also owns regulated natural gas utilities and clean energy investments. However, both businesses are designed to produce reliable cash flows to support large dividend payments. Enterprise's distribution yield is a lofty 5.7%, while Enbridge's dividend yield is roughly 5%. Enterprise has increased its distribution annually for 27 years, and Enbridge has increased its dividend for 31 years.

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The one large drawback here is that Enterprise and Enbridge are both slow-growth businesses, so the yield will likely make up the lion's share of your return over time. However, if you are trying to maximize the income your portfolio generates, that probably won't be a problem.

August is as good a month as any The global impact of the Middle East conflict has clearly highlighted how important oil and natural gas are to the world's economy. Every investor should probably have some energy exposure. That includes dividend investors. But if you are a dividend lover, you need to shift your focus from oil prices to dividend reliability. Exxon, Chevron, Enterprise, and Enbridge have proven that they know how to survive through the entire energy cycle while continuing to reward investors well for sticking around. Take a close look, and it's likely that one of these four high-yield energy stocks will fit your needs as August gets underway.

Key Takeaways EPD reported record adjusted EBITDA of $2.8B, supported by strong demand and utilization.EPD plans $3B in 2027 growth capital, with more than 80% backed by projects.EPD's Houston Ship Channel LPG export expansion is expected to begin operations by the end of 2026. Enterprise Products Partners L.P. (EPD - Free Report) used its second-quarter 2026 earnings call to emphasize volume expansion, export demand and a continued investment cycle across its midstream network. Management highlighted a record operating performance, while outlining new projects designed to support Permian Basin growth and global demand for U.S. energy.

The company reported earnings of $0.84 per diluted unit, beating the Zacks Consensus Estimate of $0.75. Revenues of $18.27 billion surpassed the estimate of $13.60 billion. Management’s discussion focused more on long-term infrastructure growth than quarterly volatility.

EPD Expands Capacity Across Energy NetworkEPD executives emphasized record operating activity during the quarter. Co-CEO A. Teague said that the partnership generated record adjusted EBITDA of $2.8 billion, up 17% year over year, supported by strong demand for U.S. energy and higher system utilization.

Teague highlighted a record pipeline volume of 14.7 million barrels per day and a marine terminal volume of 2.8 million barrels per day. Pipeline volume increased 8%, while marine terminal volume rose 33% from the prior-year quarter.

The company also pointed to its ability to connect production, processing, storage and export assets as a key operating advantage. Management said that its integrated network allowed it to respond to changing market conditions, while maintaining customer service and reliability.

Enterprise Products Builds Permian Growth PlatformEPD highlighted additional investments tied to Permian Basin expansion. Management approved 300 MMcf/d gas processing plants in the Midland and Delaware basins, along with a 150 MBPD NGL fractionator at Mont Belvieu.

Co-CEO Randy Fowler said that 2027 growth capital spending is expected to be $3 billion, with more than 80% already supported by sanctioned projects. He noted that higher Permian activity and infrastructure needs are driving the increased investment level.

Natalie Gayden, senior vice president of Natural Gas Assets, said that Enterprise Products expects its processing plant construction pace to return closer to two plants annually after the current elevated development period.

EPD Sees Export Demand Supporting StrategyEnterprise Products’ management discussed export opportunities as a major component of future growth. Tyler Cott, senior vice president of Hydrocarbon Marketing, said that customer interest in U.S. energy exports remains strong, including demand from markets seeking greater supply diversification.

The company’s LPG export expansion at the Houston Ship Channel remains a key upcoming project, with operations expected by the end of 2026. Management said that the expansion is positioned to benefit from continued global demand for U.S. hydrocarbons.

During the quarter, Enterprise Productsbenefited from elevated global demand for U.S. energy, which contributed about $200 million across NGLs, crude oil and petrochemicals, according to chief commercial officer Tug Hanley.

Enterprise Products Maintains Financial FlexibilityEPD highlighted strong cash generation and capital discipline. The adjusted cash flow from operations increased 19% year over year to $2.5 billion, while the partnership retained cash to support growth investments and unit repurchases.

The company increased its quarterly distribution 2.8% to $0.56 per common unit from the prior-year quarter. It also repurchased $159 million in common units during the quarter.

Fowler said that Enterprise Productsended the quarter with approximately $5 billion in liquidity after adding a $1-billion short-term credit facility. The company maintained its leverage target of 3X, plus or minus 0.25.

EPD Addresses Market Volatility In Q&AEnterprise Products faced analyst questions about export capacity, Permian gas growth and future capital requirements. A Citi analyst asked about curtailed natural gas volumes returning after pipeline additions and management said stronger infrastructure availability should allow additional production to enter the system over time.

A Goldman Sachs analyst questioned the outlook for Waha gas pricing and producer activity. Natalie Gayden said that Enterprise Products benefits from sustained volume growth and healthier producer economics rather than short-term pricing disruptions.

Analysts also asked about future Permian expansion needs. Gayden said that additional pipeline capacity could be required, depending on producer activity and future gas production trends.

Enterprise Products Focuses on Long-Term GrowthEPD maintained a constructive outlook based on rising volumes, export demand and disciplined project execution. Management continued to focus on expanding infrastructure that supports production growth and international energy markets.

The company’s strategy remains centered on using retained cash flow, new projects and its integrated asset network to support future operations. Management also highlighted operational execution and reliability as ongoing priorities.

Zacks Rank & Style ScoresEPD currently carries a Zacks Rank #3 (Hold). The Zacks Rank reflects the direction and magnitude of earnings estimate revisions and can change after analysts update their expectations following the results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The stock has a Value Score of B, while its Growth Score, Momentum Score and VGM Score are all D. Zacks Style Scores measure characteristics such as value, growth and momentum, with higher grades representing stronger relative attributes within each style category.

3 High-Yield Dividend Stocks With Real Capital Gains Potential in 2026Enterprise Products Partners NYSE: EPD reported record second-quarter EBITDA and adjusted cash flow from operations, supported by elevated global demand for U.S. energy exports, higher pipeline and marine-terminal volumes, and favorable market conditions during April and May.

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Co-Chief Executive Officer Jim Teague said the partnership generated $2.8 billion of EBITDA in the second quarter, up 17% from a year earlier. The company handled a record 14.7 million barrels of oil equivalent per day across its pipeline network, while marine terminal volumes rose 33% year over year to 2.8 million barrels per day. Total pipeline volumes increased 8%.

3 Rate-Ready Stocks for the New Fed Chair’s First Big Test“Our export facilities, pipelines, storage assets, and fractionation complexes work together to provide our customers with reliable access to both domestic and international markets,” Teague said. He cited strong demand for U.S. energy, particularly during April and May, and said Enterprise’s operating teams accelerated construction and began commissioning the expansion of its Neches River NGL marine terminal ahead of schedule.

Cash Flow, Distribution and Capital Spending Co-CEO Randy Fowler said adjusted cash flow from operations, before changes in working capital, rose 19% to a record $2.5 billion from $2.1 billion in the second quarter of 2025.

3 'Boring' Dividend Stocks With Tasty Technical SetupsEnterprise declared a quarterly distribution of $0.56 per common unit, a 2.8% increase from the distribution declared for the comparable quarter last year. The distribution is scheduled to be paid Aug. 14 to unitholders of record as of July 31.

The partnership repurchased $159 million of common units during the quarter and $275 million during the first half of 2026. Buybacks totaled $404 million over the trailing 12 months, bringing use of the company’s $5 billion repurchase authorization to 34%. Enterprise paid approximately $4.8 billion in distributions to limited partners over the trailing 12 months. Combined with buybacks, total capital returned was $5.2 billion, representing 56% of adjusted cash flow from operations. Total capital investments were $1.2 billion in the quarter, including $1 billion for growth projects and $140 million for sustaining capital. Fowler said Enterprise now expects 2026 growth capital spending, net of about $600 million of asset-sale proceeds already received, to range from $2.9 billion to $3.4 billion. The increase reflects early spending on new Permian Basin gas-processing plants, a new fractionator in Mont Belvieu, and related gathering, compression and power-generation facilities.

The partnership expects approximately $3 billion of growth capital spending in 2027, with more than 80% of that amount already tied to sanctioned or announced projects, according to Fowler. Despite the higher capital-spending outlook, management said discretionary free cash flow could still approach $1 billion in 2026, as higher cash flow and EBITDA have largely offset the additional project spending.

Permian Processing and NGL Projects Natural-gas processing inlet volumes reached 8.1 billion cubic feet per day during the quarter. Permian Basin inlet volumes increased 14% year over year to 4.3 billion cubic feet per day.

Enterprise approved construction of Plant 11, a 300 million cubic feet per day natural-gas processing plant in the Midland Basin, and Plant 13, a similarly sized facility in the Delaware Basin. It also sanctioned Frac 15, a 150,000-barrel-per-day NGL fractionator in Mont Belvieu.

Teague said Plant 13 is expected to enter service in the third quarter of 2028, Frac 15 in the first quarter of 2028, and Plant 11 in the first quarter of 2029. The processing plants are expected to supply additional Y-grade NGL volumes to Enterprise’s Shin Oak and Bahia pipeline systems, which were operating at 86% of capacity.

Natalie Gayden, senior vice president of natural gas, said the company’s current slate of facilities equates to roughly 1.7 new processing plants per year over the next three years. Management expects the longer-term pace to trend closer to two plants annually, depending on producer activity and gas-oil-ratio trends.

Exports, Commodity Markets and Balance Sheet Enterprise expects its LPG export terminal expansion on the Houston Ship Channel to begin service by the end of 2026. Tyler Kott, senior vice president of hydrocarbon marketing, said additional LPG export capacity is coming to market over the next 12 to 18 months, which could result in lower terminal rates and less volatility. However, he said Enterprise has contracted approximately 90% of its systemwide LPG export capacity.

Kott also said the arrival of additional very large ethane carriers, or VLECs, should support increased ethane exports as customers begin lifting volumes under existing contracts. He said the company continues to see demand for U.S. ethane from multiple regions.

Management attributed approximately $200 million of second-quarter benefit to acute global demand for U.S. energy, split roughly evenly among NGLs, crude oil, and petrochemicals and other operations. Todd Olsen, vice president of government relations, said the strong cash differentials seen during the period had “largely normalized” by the time of the call.

At quarter-end, Enterprise had approximately $33.5 billion in total debt principal outstanding, with a weighted average debt life of about 17 years, a 4.7% weighted average cost of debt, and 97% of debt at fixed rates. The partnership reported about $4 billion of liquidity at quarter-end and later added a $1 billion short-term credit facility, raising total liquidity to approximately $5 billion.

Enterprise’s net leverage ratio declined to its 3.0 times target, after adjustments for hybrid debt and unrestricted cash. The company’s leverage target remains 3.0 times, plus or minus 0.25 times.

Teague Announces Retirement Teague announced that he plans to retire after 50 years in the energy industry, including 28 years at Enterprise. He has served as co-CEO with Fowler for the past five years.

“There comes a time when you have to turn it over to the next generation,” Teague said, adding that Enterprise has “unbelievable talent” within the company. He noted that the company’s enterprise value had grown from $1.8 billion when he and Fowler joined to more than $120 billion.

About Enterprise Products Partners (NYSE:EPD)Enterprise Products Partners L.P. NYSE: EPD is a Houston-based master limited partnership that provides midstream energy services across North America. The company owns and operates an extensive network of pipelines, storage facilities, processing plants and export terminals that transport and handle natural gas, natural gas liquids (NGLs), crude oil and refined and petrochemical products. Its core activities include gathering and transportation, fractionation of NGLs, natural gas processing, crude oil and condensate pipelines, and marine and terminal services that enable domestic distribution and exports.

Enterprise serves a diverse set of customers including producers, refiners, petrochemical companies, marketers and end users.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Enterprise Products Partners L.P. Common Units (EPD) Q2 2026 Earnings Call July 30, 2026 10:00 AM EDT

Company Participants

Joseph Theriac - Vice President of Finance & Investor Relations
A. Teague - Co-CEO & Director of Enterprise Products Holdings LLC
W. Fowler - Co-CEO & Director of Enterprise Products Holdings LLC
Tyler Cott - Senior Vice President of Hydrocarbon Marketing
Tug Hanley - Executive VP & Chief Commercial Officer
Natalie Gayden - Senior Vice President, Natural Gas Assets
Justin Kleiderer - Senior Vice President of Pipelines & Terminals
Graham Bacon - Executive VP & COO of Enterprise Products Holdings LLC

Conference Call Participants

Jean Ann Salisbury - BofA Securities, Research Division
Spiro Dounis - Citigroup Inc., Research Division
John Mackay - Goldman Sachs Group, Inc., Research Division
Keith Stanley - Wolfe Research, LLC
Theresa Chen - Barclays Bank PLC, Research Division
Gabe Daoud - Truist Securities, Inc., Research Division
Jeremy Tonet - JPMorgan Chase & Co, Research Division
Andrew John O'Donnell - Tudor, Pickering, Holt & Co. Securities, LLC, Research Division
Manav Gupta - UBS Investment Bank, Research Division

Presentation

Operator

Thank you for standing by, and welcome to Enterprise Products Partners L.P.'s Second Quarter 2026 Earnings Conference Call. [Operator Instructions] I would now like to hand the call over to Joe Theriac, VP of Finance and Investor Relations. Please go ahead.

Joseph Theriac
Vice President of Finance & Investor Relations

Thanks, Latif. Good morning, and welcome to the Enterprise Products Partners conference call to discuss second quarter 2026 earnings. Our speakers today will be Co-Chief Executive Officers of Enterprise's General Partner, Jim Teague and Randy Fowler. Other members of our senior management team are also in attendance for the call today.

During this call, we will make forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 based on the beliefs of the company as well as assumptions

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Passive income is the reward for capital that shows up whether you are working, sleeping, or traveling. The paycheck economy has limits: hours in a day, layoffs in a downturn, promotions that stall. Dividend income has none of those constraints. A well-chosen distribution keeps hitting the brokerage account on a fixed schedule, funded by real cash flow from real assets.

Midstream energy sits in a rare corner of the market where the payout is both large and durable. Fee-based pipelines and terminals collect toll-like revenue regardless of where crude prints on any given day, and the master limited partnership (MLP) tax structure forces most of that cash back to unitholders. That combination, high yield plus a defensive business model, is exactly what income-focused investors are hunting for right now with WTI trading in the $80s per barrel and U.S. energy exports running at record volumes.

We screened our 24/7 Wall St. dividend equity research database, looking for stocks that pay massive dividends, and we found a collection of companies that, combined, can generate over $580 a year in passive annual income if you invest just $10,000 in each stock at the time of this writing.

Enterprise Products Partners Stock #1: Enterprise Products Partners (NYSE: EPD) Yield: 5.75% Shares for $10,000: ~260 Annual Passive Income: ~$582 Enterprise Products Partners (NYSE:EPD | EPD Price Prediction) is one of the largest North American midstream energy operators, running pipelines, storage, fractionation, processing plants, and marine terminals for NGLs, crude oil, natural gas, petrochemicals, and refined products out of its Houston headquarters. At $38.38 per unit, a $10,000 stake buys roughly 260 units and locks in an annualized distribution of $2.24, or about $582 a year in passive income.

The yield is high by structural design. As an MLP, EPD passes the bulk of its distributable cash flow through to unitholders quarterly, sidestepping corporate tax and enabling a payout that a comparable C-corp cannot match. The cash flow backing that distribution is overwhelmingly fee-based, and the numbers this morning underscore just how much cushion sits behind the check. In Q2 2026, EPD reported operational distributable cash flow of a record $2.3 billion, up 21% year over year, providing 1.9x coverage of the partnership’s cash distribution. Revenue climbed to $18.27 billion, a 60.8% jump from Q2 2025, and adjusted EBITDA hit a record $2.83 billion.

CEO Jim Teague framed the volume story directly: “The partnership handled record pipeline and marine terminal volumes during the quarter due in part to strong international demand for U.S. energy in April and May.” Pipeline equivalent volumes hit 14.7 million barrels per day, and marine terminal volumes reached 2.8 million barrels per day, up 33% year over year. That volume growth funds the payout and the growth pipeline at the same time.

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Distribution consistency is the other pillar of the thesis. This is the 27th consecutive year of distribution growth, and the latest raise was a 2.8% year-over-year increase. Management is also actively shrinking the unit count: EPD has authorized a $5.0 billion common unit buyback program, roughly 34% utilized, with $405 million repurchased over the trailing 12 months. Ownership skews toward insiders and institutions, with 32.98% insider ownership and 25.02% institutional ownership, an alignment income investors prize.

Growth is fully funded. EPD has $6.5 billion in organic growth projects under construction, including an LPG export marine terminal expansion on the Houston Ship Channel expected online by year-end 2026, two new 300 MMcf/d Permian gas processing plants slated for Q3 2028 and Q1 2029, and a new 150 MBPD NGL fractionator (Frac 15) at Mont Belvieu. Each project extends the fee-based cash flow footprint that ultimately backs future distribution raises.

This single position generates roughly $582 in annual passive income on a $10,000 investment at a 5.75% yield, paid in four quarterly installments of about $145. The next payment lands August 14, 2026, following the July 31, 2026 ex-dividend date.

The quiet appeal of a position like this is optionality. Unlike a rental property, EPD units can be trimmed, added to, or reinvested with a few keystrokes, and the distribution keeps compounding at a mid-single-digit growth rate while it sits. For investors building a cash flow ladder rather than chasing price, an MLP that raises its payout every year for nearly three decades is the kind of position that quietly does the heavy lifting.

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Replacing $25,000 a month in dividend income means generating $300,000 a year without touching principal. That is roughly what a partner at a mid-sized law firm earns, or what a dual-professional household in a coastal metro spends after taxes. The capital required to produce it swings dramatically based on the yield you accept, and the tradeoffs at each level shape whether that income lasts one decade or three.

With the 10-year Treasury yielding 4.7% and the Fed funds rate holding at 3.75% after a 75 basis point easing cycle, the yield landscape is materially different than it was two years ago.

Conservative Tier: 3% to 4% Yield At a 3.5% blended yield, generating $300,000 a year requires roughly $8,571,000 in capital. This is the dividend-growth zone, populated by regulated utilities and blue-chip REITs where the payout rises annually and the underlying business compounds.

American Electric Power (NASDAQ:AEP | AEP Price Prediction) illustrates the profile. The utility recently declared a $0.95 quarterly dividend against a 2.8% yield, and it is executing a $78 billion five-year capital plan targeting 11% rate-base growth fueled by data-center demand. Realty Income (NYSE:O) pays monthly, currently $0.271 per share, with a 4.9% yield and 114 consecutive quarterly dividend increases. The 22% one-year total price move shows the tier can appreciate, not just distribute.

Moderate Tier: 5% to 7% Yield At a 6% blended yield, the capital requirement drops to $5,000,000. At 7%, it falls to roughly $4,285,000. This is the range for midstream MLPs, high-yield telecoms, and tobacco.

Enterprise Products Partners (NYSE:EPD) just raised its distribution to $0.56 per unit quarterly, a 5.8% yield, backed by $5.3 billion of growth capex under construction. K-1 tax reporting applies. Verizon (NYSE:VZ) pays a $0.7075 quarterly dividend at a 6.0% yield, with a $4.5 billion buyback supporting per-share metrics. Altria yields 5.8% on a $1.06 quarterly dividend, with 62% operating margins funding the payout.

The tradeoff: dividend growth slows, and secular risks (cord-cutting, tobacco volumes, energy transition) cap the terminal value.

Aggressive Tier: 8% to 12% Yield At 10%, $3,000,000 produces $300,000 in annual income. At 12%, only $2,500,000. Business development companies, mortgage REITs, and leveraged covered-call funds populate this zone.

Main Street Capital (NYSE:MAIN) is the cleanest BDC example: $0.265 monthly regular dividends plus quarterly $0.30 supplementals, generating a $4.30 trailing 12-month total. The base yield sits at 5.7%, but including supplementals lifts the total distribution higher. The catch: MAIN is down roughly 9% over one year, and Q1 2026 revenue fell 18% year-over-year. Broader BDCs and mortgage REITs pushing 10-12% yields regularly see principal erode over decades even as distributions arrive.

The Compounding Trap Most Income Buyers Ignore An $8.5 million portfolio yielding 3.5% today, with dividends growing 7% annually, throws off roughly $600,000 in year 10. A $3 million portfolio yielding 10% flat throws off $300,000 in year 1 and, historically, less than that by year 10 as high-payout vehicles erode capital.

Realty Income has moved its monthly payout from roughly $0.233 in 2020 to $0.271 in July 2026. Verizon lifted the Q2 payout from $0.665 in 2024 to $0.7075 in 2026. Compounded across a portfolio built to hit $300,000 today, those raises fund the same real income against core PCE inflation running in the 90th percentile of its 12-month range.

What to Do Next Model your actual after-tax spending against $300,000 gross. In a high-bracket state, ordinary-income dividends from REITs and BDCs can lose 40% or more to taxes, while qualified dividends from tobacco or telecom names face a lower federal rate. The tier that looks cheapest in capital may cost the most in after-tax yield. Blend rather than concentrate. A 60/30/10 mix across conservative, moderate, and aggressive names produces a weighted yield near 5.5% while preserving dividend growth. That puts the capital target closer to $5.5 million, a meaningful discount to an all-conservative build. Stress-test the aggressive sleeve. Pull the 10-year distribution history for any 10%+ payer under consideration and check whether the payout in year 10 was higher or lower than year 1. If it declined, that yield is compensation for principal risk, not a durable income stream. Contact [email protected] for any questions or corrections.