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Volatility has been the name of the game for the stock market so far this year. However, it hasn't prevented the S&P 500 (^GSPC +0.05%) from chalking up a respectable gain. Some stocks have delivered especially impressive returns.

Enterprise Products Partners LP (EPD -0.18%) is definitely one of them. The pipeline stock has soared more than 20%. Its total return is even better, thanks to a juicy 5.8% distribution yield.

How will Enterprise Products Partners perform going forward? I'll make the call: the stock will crush the S&P 500 in the second half of 2026. Here's exactly why.

Image source: Getty Images.

A conflict and a potential catalyst The ongoing Middle East conflict is my top reason for being bullish on Enterprise Products Partners. Although the U.S. and Iran have attempted several times to forge a peace agreement, the two sides can't seem to fully get on the same page.

While continued hostilities won't be good news for American consumers, they should drive Enterprise Products Partners' unit prices higher. The midstream energy leader is a key player in the export of U.S.-produced oil and gas, with more than 50,000 miles of pipeline. As long as traffic through the Strait of Hormuz is disrupted, the global demand for U.S. fossil fuels will remain strong.

Enterprise is also scheduled to report its second-quarter earnings results on July 30. I view this Q2 update as a potential catalyst for the stock, with the momentum carrying through the rest of the year.

Wall Street is expecting the company to post adjusted earnings of $0.77 per unit, up 22% year over year. With the U.S. continuing to draw from its strategic petroleum reserve to export oil to international markets, my hunch is that Enterprise Products Partners could beat the consensus analyst earnings estimate.

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A dissenting view To be sure, not every Wall Street analyst is as bullish about Enterprise Products Partners as I am. Morgan Stanley (MS -0.33%) recently downgraded the stock to an "underweight" rating (which translates to a sell recommendation) and cut its 12-month price target from $43 to $40.

Should a lasting, peaceful resolution be reached between the U.S. and Iran, Morgan Stanley's pessimistic view could prove right. Importantly, though, Morgan Stanley's price target still reflects modest upside potential for Enterprise Products Partners despite the sell recommendation.

I think the odds are more in favor of the conflict continuing for months than ending soon. My hunch is that the S&P 500 could flounder in the second half of the year, while Enterprise Products Partners will flourish.

Key Takeaways Energy Transfer leads on valuation, earnings revisions, pipeline scale and three-month gains.ET yields 6.66% and posted 16.58% average annual distribution growth over five years.Enterprise Products Partners posts a 19.53% ROE, compared with 9.77% for its peer. The companies operating in the Zacks Oil and Gas – Production Pipeline industry play a vital role in the energy ecosystem by facilitating the efficient transportation and storage of crude oil and natural gas to meet rising demand from the transportation, industrial and residential sectors. Beyond ensuring a stable and reliable energy supply, midstream infrastructure strengthens energy security, supports economic growth and provides essential feedstocks for petrochemical and fertilizer production. As global energy consumption continues to increase, midstream companies remain critical to meeting traditional energy needs while supporting the transition to cleaner technologies and lower-carbon energy solutions.

Two leading operators in the U.S. midstream sector are Enterprise Products Partners (EPD - Free Report) and Energy Transfer LP (ET - Free Report) . Their extensive pipeline networks provide a safe, efficient and cost-effective means of transporting crude oil, natural gas and refined products across long distances. This infrastructure helps ensure reliable deliveries to refineries, power plants and end users while offering a more economical and lower-risk alternative to transportation by rail or truck.

Energy Transfer operates a highly diversified midstream platform spanning crude oil, NGLs, refined products and natural gas pipelines, as well as storage and processing facilities. The company has a strong presence in the Permian Basin and operates the Dakota Access Pipeline. Energy Transfer’s interests in export terminals further enhance its scale and provide additional opportunities to generate cash flow. The company operates an extensive network of approximately 140,000 miles of pipelines.

Enterprise Products Partners offers a compelling investment case, supported by its extensive and strategically positioned pipeline network and diversified midstream asset base. Its broad infrastructure connects major supply basins with key demand centers, while a robust portfolio of growth projects supports expanding scale and improves cash flow visibility. This extensive network underpins stable, fee-based revenues and strengthens the company’s long-term resilience amid an evolving energy landscape. Enterprise Products Partners operates more than 50,000 miles of pipelines.

Growing U.S. hydrocarbon production and volumes continue to drive demand for midstream infrastructure and services. Against this backdrop, let’s take a closer look at the fundamentals of these two companies to determine which stock presents the more attractive investment opportunity at present.

ET & EPD’s Earnings Growth ProjectionsThe Zacks Consensus Estimate for Energy Transfer’s 2026 and 2027 earnings has moved up 4.38% and 4.79%, respectively, in the past 60 days.

Image Source: Zacks Investment Research

The same for Enterprise Products Partners’ 2026 earnings has decreased 0.34% in the past 60 days and for 2027 earnings improved 0.3% in the same time period.

Image Source: Zacks Investment Research

Return on EquityReturn on Equity (“ROE”) is an important measure of financial performance that indicates how efficiently a company converts shareholder equity into profits. It highlights management’s effectiveness in utilizing invested capital to grow earnings and enhance shareholder value.

ET’s current ROE is 9.77% compared with EPD’s 19.53%.

Image Source: Zacks Investment Research

EPD and ET’s Cash DistributionMidstream companies typically generate strong and relatively stable cash flows, supported largely by fee-based contracts and regulated tariffs that account for a significant share of their revenues. Both firms return a substantial portion of their cash flows to unitholders through regular cash distributions.

Enterprise Products Partners currently offers a cash distribution yield of 5.67% and has increased its distribution 10 times over the past five years. Its average annual distribution growth over the same period stands at 4.61%.

Energy Transfer offers a higher current cash distribution yield of 6.66% and has raised its distribution 18 times over the past five years. The partnership has achieved an average annual distribution growth rate of 16.58% during this period.

ValuationEnterprise Products Partners’ units are trading at a discount. EPD’s current trailing 12-month Enterprise Value/Earnings before Interest, Tax, Depreciation and Amortization (EV/EBITDA) is 11.66X, compared with the industry’s 12.15X.

 Energy Transfer is trading at an EV/EBITDA of 10.28X, at a discount compared with its industry. This indicates that the firm is presently undervalued compared with its industry peers.

Image Source: Zacks Investment Research

Price PerformanceEnterprise Products Partners’ units have gained 1.9% in the past three months compared with Energy Transfer’s rally of 5.8%.

Price Performance (Three months)
Image Source: Zacks Investment Research

Summing UpEnterprise Products Partners and Energy Transfer provide efficient midstream services across their key operating regions, supported by extensive infrastructure and strong exposure to the highly productive Permian Basin. Rising U.S. hydrocarbon production is driving increased demand for transportation, processing and storage services, creating additional growth opportunities for both midstream companies.

Energy Transfer shows promise with a discounted valuation, better earnings estimate revision, stronger unit price performance and broader pipeline operations in the United States compared with Enterprise Products Partners.

Based on the above factors, it can be said that Energy Transfer, currently sporting a Zacks Rank #1 (Strong Buy), has an edge over Enterprise Products Partners, which has a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank stocks here.

As we cross the halfway mark of 2026, the energy space has already experienced a dramatic shift in the macro landscape. Supply disruptions in the Middle East turned a looming oil supply glut into a severe shortage with depleted global inventories, benefiting U.S. energy companies across the value chain. Amid significant swings in oil and equities broadly, MLPs and midstream managed to outperform the S&P 500 and kept pace with the energy benchmark in 1H26. Midstream names also largely beat 1Q26 earnings estimates, with select companies raising EBITDA guidance for the full year. Learn more below about the key topics impacting MLPs and midstream in 1H26.

Key Takeaways Midstream had a strong first quarter and showcased its defensiveness in the second quarter. The sector held onto early gains as oil prices pulled back. Surging liquefied natural gas (LNG) export demand and power needs are driving record midstream backlogs and benefiting natural gas infrastructure companies. Midstream operators are rapidly building new pipeline takeaway capacity, which is starting to resolve Permian natural gas bottlenecks this year. Midstream Defends Gains Amid Oil Price Swings Energy was the best-performing sector in 1Q26 and the worst-performing sector in 2Q26, yet midstream stood out for its defensiveness. The Alerian MLP Infrastructure Index (AMZI) and Alerian Midstream Energy Select Index (AMEI) rose 0.9% and 0.8% on a total-return basis in the second quarter, holding on to their first-quarter gains of 17.2% and 23.4% respectively. By contrast, oil prices fell 31.5% in 2Q26 after a 76.6% gain in 1Q26, and the broader Energy Select Sector Index (IXE) retreated 12.5% following a 37.9% first-quarter gain.

Energy infrastructure companies’ defensiveness stems from the support of their fee-based business models, which provide some insulation from commodity price swings. Despite its 2Q26 weakness, the broader energy sector was the second best-performing sector in the first half of 2026, after information technology. Looking further ahead, the crude futures curve for 2027 shifted about $10 per barrel higher since the war began, resulting in a constructive production outlook for oil, natural gas, and natural gas liquids (NGLs).

North American Energy Export Demand Accelerates Middle Eastern supply disruptions have reinforced the global appeal of North American energy exports, including liquefied natural gas (LNG), crude, and NGLs. Besides triggering over 1.3 billion barrels of oil supply losses, the closure of the Strait of Hormuz cut off approximately 20% of global LNG supplies, mostly from Qatar, while also disrupting flows of NGLs including ethane, an industrial feedstock, and liquefied petroleum gas (LPG), widely used for cooking and heating.

This dynamic has paved the way for rapid export capacity expansions, and LNG companies have signed numerous long-term sales and purchase agreements with counterparties in Europe and Asia. The largest announcement this year came from LNG exporter Venture Global (VG), which sanctioned CP2 Phase 2, a multi-billion dollar project expected to make the company the largest U.S. LNG exporter.

Besides major new projects, VG and Cheniere Energy (LNG) have also announced bolt-on expansions for massive existing export terminals. Cheniere Energy Partners (CQP) expects to sanction a major expansion project to its Sabine Pass export terminal in early 2027, while Cheniere Energy is seeking to greenlight its CCL Expansion Phase 1 in mid-to-late 2027. A few LNG projects are also advancing in Canada.

On the liquids side, Energy Transfer (ET) is expanding its Nederland NGL terminal, and a joint venture including Canadian operator Keyera (KEY CN) is building the Alberta Corridor Export (ACE) rail terminal to expand LPG export capacity. Meanwhile, Enterprise Products Partners (EPD) is expediting Phase 2 of its Neches River NGL marine terminal expansion.

Power Demand Helps Drive Record Backlogs for Natural Gas Infrastructure Companies Alongside LNG, growing power needs in North America, including for data centers, is driving record backlogs for natural gas infrastructure companies. While this demand has been a tailwind for a couple of years, major developments this year include:

The significant expansion of Williams’ (WMB) direct power generation business, with a Blackstone-led consortium recently committing $5.3 billion for a 49% stake in five of WMB’s power projects; Pembina’s (PPL CN) move to sanction a C$4.6 billion power generation facility supporting a Meta data center; A 9.2 GW power campus being built by AEP and Japan’s SoftBank in Ohio powering new AI infrastructure that is likely to be supplied with natural gas by Kinder Morgan (KMI); and Midstream operators continuing to see strong customer interest for regional pipeline expansions to serve broader utility grids. The multi-billion-dollar backlogs for natural gas infrastructure names, spanning both projects under construction and future project pipelines, support a multi-year runway for highly visible, fee-based EBITDA growth. As a result, many midstream names focused on these opportunity sets have been able to raise their long-term guidance.

Permian Natural Gas Projects Coming Online In the Permian Basin, a surge in associated natural gas production has resulted in severe, longstanding pipeline bottlenecks. This excess supply is largely driven by rising gas-oil ratios (GORs) as the basin matures and its production mix gets gassier. Highlighting this trend, EPD expects natural gas and NGL production growth in the Permian to be 1.6x that of crude oil production growth. This gassier production mix, combined with steady rig activity, forced the West Texas Waha natural gas price benchmark into negative territory for months.

Fortunately, pipeline infrastructure relief is arriving. The natural gas price benchmark for West Texas (Waha) recently switched into positive territory after trading consistently in negative territory for months, coinciding with the start-up of Kinder Morgan’s Gulf Coast Express Expansion. The expansion serves as the basin’s first major relief valve for takeaway constraints. Additional relief is imminent, with several critical long-haul projects slated to come online over the next year.

As can be seen above, ET’s Hugh Brinson Pipeline and the joint venture backed Blackcomb Pipeline are both expected to start up in 2H26, and most planned natural gas pipeline capacity additions in 2026 and 2027 originate in Texas. By alleviating takeaway constraints, this incoming capacity will create a positive runway for continued production growth from the basin into 2027.

Bottom Line Midstream enters the second half of 2026 in a much stronger position than it started the year, bolstered by a constructive production outlook for 2027. Natural gas infrastructure momentum shows no signs of slowing, as companies execute on massive opportunities tied to surging LNG and data center power demand. Moving forward, investors should monitor upcoming final investment decisions (FIDs) on export facilities and power-adjacent infrastructure, as well as broader trends in capital allocation. As earnings season kicks off in late July and early August, watch for potential upside to full-year EBITDA guidance alongside updates on dividend growth and share repurchases.

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AMZI is the underlying index for the Alerian MLP ETF (AMLP) and the ETRACS Alerian MLP Infrastructure Index ETN Series B (MLPB). AMEI is the underlying index for the Alerian Energy Infrastructure ETF (ENFR) and the Alerian Energy Infrastructure Portfolio (ALEFX).

Related Research: U.S. Oil Production Outlook & Midstream Implications

Midstream: Robust Gas Backlogs Drive Growth Visibility

Surging U.S. Power Needs Drive Gas Infrastructure Opportunity

WMB Analyst Day: Power & Pipe to Drive Robust Growth

Midstream and Rising Canadian Production & Exports

Midstream Prepares for More Permian Natural Gas

vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for AMLP, MLPB, ENFR, and ALEFX, for which it receives an index licensing fee. However, AMLP, MLPB, ENFR, and ALEFX are 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, MLPB, ENFR, and ALEFX.

For more news, information, and analysis, visit the Energy Infrastructure Content Hub.

Environmental Product Declarations (EPDs)(1), which assess the full environmental footprint of the aircraft throughout its lifecycle, are an integral part of Bombardier’s sustainability strategyThe Global 8000 joins Bombardier’s Challenger 650, Challenger 3500, Global 5500, Global 6500 and Global 7500 as the only business jets in the world to carry an EPD(1)(2) – a key aspect of Bombardier’s leadership in lifecycle assessment and disclosureThe Global 8000 EPD further illustrates the steadfast commitment, pride and investment Bombardier is making to ensure it is fully transparent about our product lifecycle while continuing to innovate and identify opportunities for improvement across the value chain

MONTREAL, July 21, 2026 (GLOBE NEWSWIRE) -- Bombardier today announced that the world’s fastest civilian aircraft, the Global 8000 jet has obtained its Environmental Product Declaration (EPD), joining several other Bombardier aircraft already with EPDs, including the Challenger 650, Challenger 3500, Global 5500, Global 6500, and Global 7500 aircraft (1).

With this important designation, Bombardier becomes the only business jet manufacturer to ever disclose the scientifically-analyzed environmental impact of its in-production aircraft via the publication of EPDs (2). All of Bombardier’s business jets EPDs are publicly available on the company’s website and display, amongst other information, the aircraft CO2 emissions generated at each of the steps of the value chain: from raw material extraction until aircraft end-of-life.

“This is an important milestone for Global 8000, as EPDs transparently disclose the environmental impact they generate. The development of EPDs is in line with Bombardier’s objective to advance sustainable business aviation by making environmentally responsible choices in the full life cycle of aircraft design, from sourcing raw materials right up to assembly and operations. For us, it’s all about continuous improvement in every stage of aircraft development,” said Stephen McCullough, Executive Vice President, Engineering, Product Development and Bombardier Defense. “From its recent speed records, to its stellar performance during demonstration flights at the Farnborough International Airshow, this is yet another important milestone for this incredible aircraft. The Global 8000 offers so much promise for both our civil and defense customers in region due to its incredible performance attributes and mission flexibility.”

At Bombardier, integrating environmental sustainability into the product development function is a fundamental aspect of the process to design state-of-the-art aircraft, and is a core value. Applying a complete life cycle perspective to aircraft design is central to a product’s responsibility strategy.

As the fastest civil aircraft in the skies with a top speed of Mach 0.95 and a range of 8,000 NM(3), the Global 8000 aircraft can enable passengers to fly faster and farther than ever before. With its long-range capabilities, low cabin altitude and exceptionally smooth ride and agile, takeoff and landing performance capabilities, it’s the ideal platform to support customers for the duration of their mission.

About Bombardier

At Bombardier (BBD-B.TO), we design, build, modify and maintain the world’s best performing aircraft for the world’s most discerning people and businesses, governments and militaries. That means not simply exceeding standards, but understanding customers well enough to anticipate their unspoken needs.

For them, we are committed to pioneering the future of aviation—innovating to make flying more reliable, efficient and sustainable. And we are passionate about delivering unrivaled craftsmanship and care, giving our customers greater confidence and the elevated experience they deserve and expect. Because people who shape the world will always need the most productive and responsible ways to move through it.

Bombardier customers operate a fleet of more than 5,200 aircraft, supported by a vast network of Bombardier team members worldwide and 10 service facilities across six countries. Bombardier’s performance-leading jets are proudly manufactured in aerostructure, assembly and completion facilities in Canada, the United States and Mexico. In 2024, Bombardier was honoured with the prestigious “Red Dot: Best of the Best” award for Brands and Communication Design.

For Information

For corporate news and information, including Bombardier’s Sustainability report, as well as the company’s initiative to cover all its flight operations with a Sustainable Aviation Fuel (SAF) blend utilizing the Book-and-Claim system visit bombardier.com.

Learn more about Bombardier’s industry-leading products and customer service network at bombardier.com. Follow us on X @Bombardier.

Media Contacts
General media contact webform

Mark Masluch                                                                                                                                           
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Bombardier, Challenger, Challenger 650, Challenger 3500, Global, Global 5500, Global 6500, Global 7500 and Global 8000 are registered or unregistered trademarks of Bombardier Inc. or its subsidiaries.

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(1) The Global 8000 carries a Type III declaration in accordance with the ISO 14025 and is registered with the International EPD System, an environmental declaration program based in Sweden. It discloses fully transparent environmental information about the product’s life cycle, such as CO2 emissions, noise, water consumption and other key environmental impact indicators. The other Bombardier aircraft listed have Type II declarations in accordance with the ISO 14021, and following ISO 14044:2006 for science-based Life Cycle Assessment (LCA).
(2) Based on Bombardier's analysis of publicly available data.
(3) All specification and data are subject to certain operating rules, assumptions and other conditions, when compared to commercial and business aircraft currently in service.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/afc17925-e336-4390-839a-25a303234380

With thousands of publicly traded companies and exchange-traded funds (ETFs) to choose from, there is no shortage of strategies to build wealth on Wall Street. But statistically speaking, buying and holding high-quality dividend stocks delivers some of the most attractive annualized returns.

As of the closing bell on July 10, approximately 300 stocks (minimum $300 million market cap and excluding ETFs) were sporting ultra-high dividend yields of at least 5%. Although some high-octane income stocks are more trouble than they're worth, two super-safe and supercharged dividend stocks can be found among these ultra-high-yielders: Enterprise Products Partners (EPD 0.56%) and Realty Income (O 0.80%).

Image source: Getty Images.

Enterprise Products Partners: 5.9% yield Oil and gas stocks are often known for their robust capital-return programs, as well as their heightened volatility when energy prices swing wildly. Enterprise Products Partners delivers an outsize annual yield that's nearing 6%, but doesn't have anywhere close to the same risk profile as oil and gas producers.

Enterprise is one of America's largest midstream providers -- effectively an energy middleman overseeing transmission pipelines, liquids storage, deepwater docks, and fractionators.

The beauty of midstream energy companies like Enterprise is that they typically secure long-term, fixed-fee contracts with upstream drillers. Regardless of whether oil and gas prices skyrocket or tumble, the fixed-fee nature of its contracts removes the effects of inflation and commodity volatility from the equation, resulting in highly predictable cash flow from operations.

EPD Dividend data by YCharts.

Predictability is incredibly important for Enterprise Products Partners. Knowing how much cash flow it'll generate one or more years in advance allows it to tackle new natural gas liquids projects and/or make bolt-on acquisitions.

Though Enterprise Products Partners has raised its payout for 27 consecutive years, it's increased its quarterly distribution 83 times since going public in July 1998, including its latest distribution hike (announced on July 7).

Grocery stores are a key tenant for Realty Income's commercial real estate portfolio. Image source: Getty Images.

Realty Income: 5.1% yield If you think 83 separate dividend hikes are impressive since 1998, you're going to love retail real estate investment trust (REIT) Realty Income. Since its initial public offering in October 1994, Realty Income has increased its dividend for 115 consecutive quarters and 135 times in total. On a combined basis, Enterprise and Realty Income have raised their payouts 218 times!

Unlike Enterprise, Realty Income doles out its dividend monthly. This is made possible by the company's superior commercial real estate (CRE) portfolio, exceptional lease vetting, and reliance on triple-net leases (commonly called "NNN leases").

In terms of CRE assets, Realty Income focuses on brand-name, stand-alone businesses capable of luring customers in any economic climate. Think grocery stores, dollar stores, convenience stores, and automotive service shops, to name a few. Businesses in recession-resistant industries rarely struggle to pay rent.

O Dividend data by YCharts.

Realty Income also closed out the March quarter with an occupancy rate of 98.9%, which is 450 basis points above the historical median occupancy rate of S&P 500 REITs since 2000. In other words, Realty Income's tenants pay their bills and sign long-term leases.

Lastly, Realty Income relies on the triple-net lease structure. Whereas a landlord is typically responsible for property maintenance, insurance, and property taxes, NNN leases place the onus of these costs on the tenant. Though the landlord receives less in rent with an NNN lease, there are also no surprise expenses.

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Eight thousand dollars a month is the kind of retirement income target that looks simple until the yield math starts moving underneath it. It translates to $96,000 a year, but the portfolio needed to produce that income can vary by well over $1 million depending on whether the investor accepts a 3.5% yield, a 6% yield, or a double-digit payout with more risk attached.

The equation is unforgiving: annual income divided by yield equals the capital needed to produce it before taxes. At a 3.5% blended yield, hitting $96,000 requires roughly $2,742,857. Push the yield to 5%, and the number drops to $1,920,000. At 6%, it falls to $1,600,000. Stretch to a 10% yield, and you technically need $960,000. The temptation is to chase the bottom of that table. The reason to resist is that high yield often comes with slower growth, weaker tax treatment, or greater risk to principal.

The Sleep-at-Night Foundation: 3% to 4% Yield This is dividend-growth territory. Johnson & Johnson (NYSE:JNJ | JNJ Price Prediction) currently yields about 2.0%, which sounds thin until you look at the runway. The quarterly payout rose to $1.34 in Q2 2026, extending a streak of 64 consecutive years of increases. And the stock is up roughly 67% over the past year, on top of the dividend.

Southern Company (NYSE:SO) sits in the same tier at a 3.1% yield, with the quarterly dividend stepping up to $0.76 in 2026. The regulated utility serves 9 million customers across the Southeast, and data-center power demand has turned a traditionally sleepy sector into a growth story. A blended 3.5% yield across a diversified basket of names like these still asks for roughly $2.7 million of capital, which is the real cost of maximum safety.

The Middle Ground: 5% to 6% Yield Realty Income (NYSE:O) yields about 5.2% and cuts a check every month. The June 2026 payment of $0.271 per share marked another incremental raise in a track record stretching back 27 years. Portfolio occupancy sits at 98.9%, and 2026 AFFO guidance was raised to $4.41 to $4.44 per share.

Enterprise Products Partners (NYSE:EPD) yields close to 5.9% with the current $0.55 quarterly distribution, and it has raised the payout for 27 consecutive years. The K-1 tax form is the tradeoff. A blended 5.5% yield across O, EPD, and similar names cuts the required capital to roughly $1.75 million. The distributions grow more slowly than JNJ’s, but the current income is materially higher.

The High-Yield Trap: 8% to 12% Ares Capital (NASDAQ:ARCC) is a clear example of what you get and what you give up. The 10.4% yield is real. The $1.92 annual dividend has held steady since 2023. But NAV per share slipped to $19.59 from $19.94 last quarter, non-accruals rose to 2.1% from 1.8%, and the stock is down 6.7% over the past year even as the dividend rolled in.

Why the Lowest Yield Often Wins Compare the trade-off at the extremes. An investor holding J&J collected a lower starting yield but owned a company with 64 consecutive years of dividend increases. An ARCC holder collected a much fatter current dividend but accepted more credit risk and less income growth. That is the argument for the conservative tier: a 3.5% yield that grows 6% to 8% annually roughly doubles the income in 9 to 12 years, while a flat 10% yield remains a fixed stipend over the same period.

Make the Dividend Math Survive Real Life Calculate your actual annual spending rather than your salary. A household planning around $96,000 of gross employment income may need less than $96,000 from dividends in retirement if payroll taxes, retirement contributions, commuting costs, and other work-related expenses disappear. The right number is the spending gap after Social Security, pensions, cash reserves, and taxes.

Line up the 10-year total return of a dividend-growth basket against a pure high-yield basket. Include reinvested dividends, taxes, and any change in principal. The compounding gap can be larger than the current-yield gap, especially when the high-yield holdings cut payouts or lose net asset value.

Map the tax character of each holding. Qualified dividends from J&J and Southern Company generally receive lower federal capital-gain tax rates when holding-period rules are met. Realty Income’s REIT distributions and ARCC’s BDC payments are often largely ordinary income, though the final tax character can vary by year. EPD sends a Schedule K-1. Two portfolios with the same headline yield can deliver very different after-tax checks.

A $96,000 dividend target can be built several ways, but the lowest capital requirement is not automatically the best answer. Higher yield can solve the spreadsheet and still weaken the plan if the income stops growing, the tax bill rises, or principal erodes. The better goal is not simply hitting $8,000 a month. It is building an income stream that can keep paying, keep growing, and keep up with the retirement it is supposed to support.

Contact [email protected] for any questions or corrections.

If you're confused about whether the price of oil and natural gas will continue to stay high, join the club. The vicissitudes of oil and natural gas prices have been notoriously noticeable this year. Energy markets have been whipsawed by severe geopolitical shocks in the Middle East, followed by dramatic regulatory resolutions that have triggered sharp price swings.

This year's chaos perfectly demonstrates why some income investors highly prize Enterprise Products Partners' (EPD 0.05%) toll-road business model. While oil and global gas prices swung by nearly 100% and supply chains experienced massive disruptions, Enterprise's volume-driven, fee-based pipelines continued to collect steady fees. The company provides midstream services to producers and consumers of natural gas, natural gas liquids, crude oil, refined products, and petrochemicals, regardless of wild commodity price fluctuations.

As a master limited partnership (MLP), it functions fundamentally differently from an oil driller or exploration company. Here are three compelling reasons to own Enterprise Products Partners stock.

Image source: Getty Images

Enterprise moves energy; it doesn't sell it Enterprise doesn't take on direct commodity price risk by betting on whether oil or natural gas prices will rise or fall. Instead, it owns the sprawling infrastructure required to move, process, and store those molecules.

It owns more than 50,000 miles of pipelines, 300 million barrels of liquid storage capacity, and world-class marine export terminals. Roughly 80% of Enterprise's gross operating margin is derived from fee-based contracts. Whether natural gas or natural gas liquids are trading at highs or lows, producers must pay the company a fixed fee per barrel or cubic foot just to move their product through the system. This provides a rock-solid floor for its earnings, insulating the company from broader energy-market crashes.

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It has had steady distribution growth For income-focused investors, Enterprise Products Partners is royalty. The MLP has increased its cash distribution for 28 consecutive years, surviving the dot-com bust, the 2008 financial crisis, the 2014-2016 shale crash, and the 2020 pandemic lockdowns without skipping a beat.

It just raised its quarterly payout by 2.8% to $0.56, equating to a yield of 5.08% at its current share price. That's more than five times the S&P 500 average. Because the company has so consistently increased its dividend, it provides investors with a reliable built-in inflation shield.

Elite financial health and fortress payout coverage A high yield means nothing if the company has to take on a lot of debt or starve its own business to pay it. Enterprise stands out as one of the most conservatively managed financial fortresses in the market. While its yield outshines its midstream competitors, its payout ratio of around 80% is in the middle of the pack.

In the first quarter, the company reported $2.1 billion in distributable cash flow (DCF), providing a coverage ratio of 1.8 times what it paid out to unitholders. It reported adjusted cash flow from operations of $2.3 billion, up 10%, year over year. The company retains hundreds of millions of dollars in excess DCF each quarter after paying investors, enabling it to self-fund its billions in annual growth projects. It doesn't rely on issuing dilutive equity or taking on high-interest debt to grow. Combined with a stellar leverage ratio and an investment-grade credit rating, the distribution is structurally protected from almost any macroeconomic storm.

One complication comes at tax time Because Enterprise Products Partners is an MLP, it issues a Schedule K-1 rather than a standard 1099-DIV. This offers excellent tax-deferred income benefits, though it is usually best held in a taxable brokerage account rather than an IRA to avoid potential tax complexities.

Some investors don't like Schedule K-1s because they are complicated and their reports sometimes trickle in during April, instead of March, and can get really complex if you hold them in non-taxable accounts, such as a Roth IRA.

The big edge is that K-1s allow you to compound wealth through tax deferral of your dividends. Yes, you will have to pay tax on your dividends, even if you don't cash them out. However, the actual financial hit is usually very small.

Because Enterprise Products Partners has massive, multibillion-dollar non-cash deductions, such as depreciation of its pipelines and equipment, it uses them to heavily shield its net profits. So if Enterprise pays you $1,000 in dividends over the year, your Schedule K-1 may show you actual share of net ordinary business income was only $100 to $200, and you only owe ordinary income tax on that $100 to $200. Also, that pass-through income qualifies for the 20% qualified business income deduction, further reducing your effective tax burden.

Enterprise Products Partners (EPD - Free Report) closed at $37.29 in the latest trading session, marking a -1.35% move from the prior day. This move lagged the S&P 500's daily gain of 0.81%. Meanwhile, the Dow experienced a rise of 0.27%, and the technology-dominated Nasdaq saw an increase of 1.3%.

Shares of the provider of midstream energy services have depreciated by 0.18% over the course of the past month, outperforming the Oils-Energy sector's loss of 3.61%, and lagging the S&P 500's gain of 1.13%.

Market participants will be closely following the financial results of Enterprise Products Partners in its upcoming release. It is anticipated that the company will report an EPS of $0.74, marking a 12.12% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $13.49 billion, up 18.73% from the year-ago period.

EPD's full-year Zacks Consensus Estimates are calling for earnings of $3.01 per share and revenue of $56.02 billion. These results would represent year-over-year changes of +13.16% and +6.51%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Enterprise Products Partners. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.94% higher within the past month. Enterprise Products Partners currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, Enterprise Products Partners is currently exchanging hands at a Forward P/E ratio of 12.57. This signifies a discount in comparison to the average Forward P/E of 14.12 for its industry.

We can additionally observe that EPD currently boasts a PEG ratio of 1.33. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Oil and Gas - Production Pipeline - MLB industry stood at 1.33 at the close of the market yesterday.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 79, placing it within the top 33% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Enterprise Products Partners (EPD) is downgraded from Strong Buy to Buy as valuation has risen and yield is now less compelling versus peers. Neches River Terminal Phase-2 expansion boosts capacity, with potential $250M+ annual EBIT impact, especially if spot rate premiums persist. Q1 saw operating margins improve to 13.17% despite revenue decline and a temporary working capital drag on cash flows.

On July 07, 2026, Enterprise Products Partners LP (EPD) shares rose 3.2% today, closing at $37.64. The stock has traded within a 52-week range of $30.01 to $40.

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Average rent in the United States is roughly $2,000 a month in 2026, putting the annual tab near $24,000. Replace that bill with dividend income and the tenant becomes the owner of the income stream rather than the landlord’s customer. The interesting question is how much capital it takes, and what you trade away at each yield level.

The Rent Number, Translated Into Capital Use $24,000 a year as a clean target. Divide by the portfolio yield to get the capital required.

At a 3.5% yield (broad dividend growth), $24,000 divided by 0.035 equals roughly $686,000. At a 6% yield (REITs, MLPs, high-dividend equity), $24,000 divided by 0.06 equals $400,000. At a 10% yield (business development companies, mortgage REITs, leveraged income funds), $24,000 divided by 0.10 equals $240,000. That equation is the engine. Everything below is what you exchange for the smaller capital number.

The Conservative Build: Most Capital, Most Compounding A 3.5% starting yield reads modestly against a 10-year Treasury recently near 4.4%, and that is the point. A dividend growth core, anchored by an S&P 500 Dividend Aristocrats fund and a core dividend growers ETF, pairs a lower current payout with the potential for a rising one. The investor who funds $686,000 here accepts less income today in exchange for a better chance at dividend growth and principal appreciation over time.

Realty Income (NYSE:O | O Price Prediction) sits one notch up at roughly a 5.2% yield. The monthly dividend climbed from $0.1995 in June 2016 to $0.2710 in 2026, with 135 dividend increases since its 1994 NYSE listing and 670 consecutive monthly dividends announced as of April 2026. That is steady growth, but not fast enough to double income inside a decade without fresh capital.

The Moderate Tier: Where the Math Gets Friendly At 6%, you need $400,000 to cover a $24,000 annual rent target. Realistic building blocks might include a net-lease REIT, an industrial REIT, a midstream partnership, and a large-cap telecom, though each carries different tax, interest-rate, and business risks.

Realty Income: monthly payer with Q1 2026 portfolio occupancy of 98.9% and 2026 AFFO guidance of $4.41 to $4.44 per share. STAG Industrial (NYSE:STAG): warehouse landlord that shifted to a $0.3875 quarterly payment in 2026, raising its annual dividend rate to $1.55 and putting the yield near 3.9%. Enterprise Products Partners (NYSE:EPD): midstream MLP yielding about 6.0%, paying $0.55 per unit for Q1 2026, up from $0.445 in 2020. Expect a K-1 at tax time. Verizon (NYSE:VZ): telecom yielding about 6.1%, with Frontier results included beginning January 20, 2026, and 2026 adjusted EPS guidance of $4.95 to $4.99. Equally weighted, this mix lands near a 5.8% blended yield using recent prices and annualized payouts. Four hundred thousand dollars would throw off roughly $23,000 a year before taxes, paid monthly by Realty Income and quarterly by STAG, Enterprise, and Verizon.

The Aggressive Tier: $240,000 and an Asterisk Ares Capital (NASDAQ:ARCC) pays $1.92 annually for a yield near 10.6%, while Q1 2026 core EPS was $0.47 and the declared quarterly dividend was $0.48. The asterisk is principal. BDC shares can decline even when distributions continue, and high-yield income can come with pressure on net asset value if credit conditions weaken.

The Insight Most Rent-Replacers Miss A 3.5% yield growing 8% a year does not beat a flat 10% yield inside a decade on cumulative income. It takes about 14 years just for the annual income to catch up, assuming the 10% payout never grows. The better point is durability: a lower-yielding portfolio with consistent dividend growth can become more useful over time, while a flat high-yield payout loses purchasing power as rent rises.

Make the Rent Check Durable Pull your actual rent number. A $1,500 apartment in Pittsburgh and a $3,400 unit in Boston demand very different capital bases, so the national average may overstate or understate your target.

Compare the 10-year total return of a dividend growth ETF against a BDC income fund, using the same start date, end date, and reinvestment assumption. The gap helps show what you may be paying for the higher starting yield, especially if the income fund produces more cash but less principal growth.

Match payment cadence to the bill. Realty Income pays monthly; STAG, Enterprise, and Verizon pay quarterly, which changes how you budget for rent due on the first of every month.

The Rent Check Has to Survive More Than One Lease Replacing rent with portfolio income is not just a yield problem. It is a durability problem. A double-digit yield can reduce the capital required today, but that advantage shrinks if the payout stalls, taxes eat into the income, or principal falls during a credit cycle. The stronger rent-replacement plan is usually a blended one: enough current income to help now, enough dividend growth to matter later, and enough liquidity to avoid selling when the rent is due.

Contact [email protected] for any questions or corrections.

Dividend stocks are becoming attractive in 2026. First, investors are becoming more skeptical about growth in the technology sector, which remains concentrated in a few names. Adding to the current angst is that those names seem to revolve around headlines and vibes.

At the core of this concern is volatility. More retail investors are trading stocks than ever before. That, in addition to high-speed trading algorithms, can stir anxiety in even the most patient long-term investor.

Get EPD alerts:

That makes the benefit of passive income attractive. But the benefit only matters if the underlying business supports dividend growth, and more importantly, capital gains for investors.

Avoid the Yield TrapA high yield isn't automatically a good yield. Sometimes it signals danger rather than opportunity. A "yield trap" occurs when a stock's price has fallen so far that the dividend yield looks attractive on paper, even though the underlying business can no longer support the payout. Warning signs include a payout ratio approaching or exceeding 100% of earnings or free cash flow, rising debt levels, and declining revenue trends.

AT&T NYSE: T is a well-known example. Investors chased its yield for years before the company cut its dividend by nearly half in 2022 to redirect cash flow toward debt reduction. The lesson: a sustainable payout ratio and healthy balance sheet matter more than the headline yield.

That’s why investors need to look beyond an attractive high yield and consider the underlying business. That’s something that investors can consider in these three stocks that offer a mix of reliable passive income with the added benefit of likely stock price growth in the second half of 2026 and beyond.

A Toll-Taker Dividend PlayEnterprise Product Partners NYSE: EPD is a midstream energy company with pipelines, storage facilities, processing plants, and export terminals throughout North America. The company transports materials such as natural gas, natural gas liquids (NGLs), and crude oil.

Enterprise Products Partners Today

EPD

Enterprise Products Partners

$36.77 +0.02 (+0.05%)

As of 07/2/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$30.01▼

$40.17Dividend Yield5.98%

P/E Ratio13.62

Price Target$39.94

A key benefit of investing in midstream companies is that their business models are agnostic to crude oil or natural gas prices. They simply collect a toll for what they’re moving.

The immediate focus of investors is the geopolitical concerns with Iran and the Strait of Hormuz. In its Q1 2026 earnings report, the company cited supply constraints that could create earnings volatility. However, those concerns will go away if traffic through the Strait normalizes.

Despite the geopolitical landscape, EPD has delivered a gain of about 15% in the first half of 2026 and is trading just below its consensus price target of $39.94. That pairs nicely with a dividend that yields 6% and has increased for 28 consecutive years.

Investors should be aware that Enterprise Product Partners is a master limited partnership (MLP). This makes the dividend attractive in a similar way to that of a real estate investment trust (REIT), but the structure comes with risks and tax concerns that investors should research before allocating capital.

MPLX Doubles Down on Permian GrowthMplx Today

$57.20 +0.04 (+0.06%)

As of 07/2/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$47.80▼

$59.98Dividend Yield7.54%

P/E Ratio12.38

Price Target$61.60

Another midstream energy name to consider is MPLX NYSE: MPLX. MPLX benefits from its relationship with parent company Marathon Petroleum NYSE: MPC, which holds a majority economic interest in the partnership and provides a built-in customer base for its refining logistics segment.

That relationship, combined with an aggressive growth capital program in the Permian and Delaware basins, positions MPLX to expand natural gas processing and NGL takeaway capacity as production in the region continues to climb.

MPLX is up about 5% in the first half of 2026 and the consensus price target of $61.60, which is about 8% above recent prices. It also suggests that there is more upside to go along with a dividend that yields over 7.5%. MPLX has also historically maintained a distribution coverage ratio comfortably above 1x—a cushion that gives the partnership room to keep raising its payout even if commodity markets turn choppy.

High-Yield Income From Private CreditIt’s crazy to invest in private credit firms, right? Maybe and maybe not. These companies have been under a microscope as investors in some of them are under pressure, with investors requesting their money back over concerns about loan quality.

Ares Capital Today

$18.73 0.00 (0.00%)

As of 07/2/2026 04:00 PM Eastern

52-Week Range$17.40▼

$23.42Dividend Yield10.25%

P/E Ratio11.49

Price Target$20.60

That said, these companies often pay attractive dividends and, under the right conditions, can offer the opportunity for share price growth. Ares Capital NYSE: ARCC looks like a safe name in this space. The company’s Q1 2026 earnings report highlighted the company’s healthy, diversified portfolio.

That supports a balance sheet that makes the dividend, which yields a juicy 10.3%, very attractive for passive income. Plus, analysts have a consensus price target of $20.60, which suggests an upside of over 10%.

The concern is that higher interest rates could force a dividend cut.

However, if the Federal Reserve maintains rates at their current levels, which is still the outcome with the highest percentage odds, Ares looks to be a solid choice for income-seeking investors.

Should You Invest $1,000 in Enterprise Products Partners Right Now?Before you consider Enterprise Products Partners, you'll want to hear this.

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Enterprise Products Partners (EPD - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Shares of this provider of midstream energy services have returned -2.5% over the past month versus the Zacks S&P 500 composite's -1.8% change. The Zacks Oil and Gas - Production Pipeline - MLB industry, to which Enterprise Products belongs, has gained 0.7% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, Enterprise Products is expected to post earnings of $0.74 per share, indicating a change of +12.1% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The consensus earnings estimate of $3.01 for the current fiscal year indicates a year-over-year change of +13.2%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $3.29 indicates a change of +9.5% from what Enterprise Products is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Enterprise Products.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Enterprise Products, the consensus sales estimate of $13.49 billion for the current quarter points to a year-over-year change of +18.7%. The $56.02 billion and $60.61 billion estimates for the current and next fiscal years indicate changes of +6.5% and +8.2%, respectively.

Last Reported Results and Surprise HistoryEnterprise Products reported revenues of $14.39 billion in the last reported quarter, representing a year-over-year change of -6.7%. EPS of $0.68 for the same period compares with $0.64 a year ago.

Compared to the Zacks Consensus Estimate of $13.19 billion, the reported revenues represent a surprise of +9.03%. The EPS surprise was -4.23%.

Over the last four quarters, Enterprise Products surpassed consensus EPS estimates two times. The company topped consensus revenue estimates two times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Enterprise Products is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Enterprise Products. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

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About $85,000 a year is what a comfortable middle-class retirement costs in most U.S. metros after Social Security benefits fill part of the gap. It is also close to the median household income in the country. For investors who think in terms of replacing a paycheck through dividends, the question is simple: How much capital does it take, and which stocks get you there?

The engine is one equation. Income target divided by yield equals capital required. Run it at three yield levels and the tradeoffs reveal themselves.

The Conservative Tier: 3% to 4% Yield At a 3% blended yield, $85,000 in annual income requires roughly $2.83 million in capital. At 3.5%, the number drops to about $2.43 million. At 4%, around $2.13 million. This is the largest check, and for good reason. You are buying dividend growth on top of dividend size.

Coca-Cola (NYSE:KO | KO Price Prediction) anchors this tier. The current yield sits at 3%, just below the band, but the trajectory is the story. The quarterly dividend has stepped from $0.485 in 2024 to $0.51 in 2025 to $0.53 in 2026, extending a streak that already covers 63 consecutive years of annual increases. Q1 2026 revenue grew 12% year over year, and the company expects comparable EPS growth of 8% to 9% for the full year. KO trades at a 25 trailing P/E with a beta of 0.35, which is the textbook sleep-at-night profile.

Other names that round out this tier carry similar profiles: long histories of annual raises, durable cash generation, modest payout ratios. The portfolio compounds. The check is bigger up front because the math demands it.

The Moderate Tier: 5% to 7% Yield At 6%, $85,000 requires about $1.42 million. At 7%, roughly $1.21 million. The capital requirement drops sharply, and three of our four named stocks live here.

AT&T (NYSE:T) yields 5% at a current price of $20.82. The quarterly payout has been frozen at 27 cents since the WarnerMedia spinoff reset in 2022, and management has guided to holding that $1.11 annualized rate through 2028. Free cash flow is expected to scale from $18 billion in 2026 to $21 billion by 2028, but the dividend itself is not moving.

The same investor newsletter that told subscribers to buy Amazon in 2002, Netflix in 2004, and Nvidia in 2005 still publishes two new stock picks every month. Over 23 years, Motley Fool's Stock Advisor has more than quadrupled the S&P 500. New members get this month's picks, the Top 10 Rankings, and a 30-day money-back guarantee. Click here to unlock their next top stocks while new members are still being accepted.

Enterprise Products Partners (NYSE:EPD) yields 6% and has raised its distribution for 27 consecutive years. Q1 2026 adjusted EBITDA grew 10%. Important caveat: EPD is a limited partnership, so investors receive a Schedule K-1 instead of a 1099, which complicates tax filing and creates state-level filing obligations.

Realty Income (NYSE:O), the monthly dividend REIT, yields 5%. The June 2026 monthly distribution was 27 cents, extending a streak of 670 consecutive monthly dividends and 114 consecutive quarterly increases. REIT distributions are generally taxed as ordinary income rather than qualified dividends, which matters in taxable accounts.

The Aggressive Tier: 8% to 14% Yield At 10%, $85,000 requires $850,000. At 12%, about $708,333. The capital math looks attractive. The risk profile does the talking.

This tier is populated by business development companies, mortgage REITs and high-yield energy names. The categories carry elevated balance sheet leverage, sensitivity to short-term rates, and a history of cuts during cycles. Stock prices in these names often erode while the headline yield stays advertised. The investor is choosing current income over total return and over inflation protection.

The Insight Most Retirees Get Wrong Compare the two paths. KO has raised its dividend every year through multiple recessions, with the quarterly rate climbing from $0.485 to $0.53 in three years. T’s payout has been static since 2022, and the prior cut took the dividend from 52 cents to 27 cents per quarter, which equates to a roughly 47% reduction. Over a 20-year retirement, a steady grower will likely overtake a frozen high-yielder on income, with the principal still intact. The high yield looks larger on day one. The compounding grower looks larger on day 3,000.

The price tape reinforces it. KO is up more than 15% over the past year. T is down more than 28% in the same window. Yield without growth is just a number; growth is what makes it a strategy.

What to Do Pull the current yield on every name before sizing a position. Yields move with price, and the same ticker can shift tiers in a single quarter. Model a 25% dividend cut from your single highest-yielding holding and check what that does to monthly income. If the answer is uncomfortable, your concentration is the problem. If retirement is within five years, stress-test the aggressive tier against the last two cut cycles in BDCs and mortgage REITs. The yield on the screen can diverge meaningfully from the yield you actually receive. If You'd Bought Amazon When the Motley Fool Said To…In September 2002, Stock Advisor told subscribers to buy Amazon. In December 2004, Netflix. In April 2005, Nvidia. The newsletter still publishes two new stock picks every month — and over 23 years, has more than quadrupled the S&P 500. Here's how to get this month's picks:

- Join Stock Advisor for one year, with a 30-day money-back guarantee

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- Read the analysis, decide for yourself, and trade through your own brokerage

Five years from now, you'll probably wish you'd bought this month's picks. Don't miss them.

Contact [email protected] for any questions or corrections.

HomeDividends AnalysisDividend IdeasEnergy Analysis

SummaryAmid heightened oil price volatilities, Chevron (CVX) and Enterprise Products (EPD) have become timely due to their attractive yields and remarkable dividend growth records.EPD offers higher current yield and features relatively low sensitivity to oil price fluctuations due to its mid-stream model.However, CVX’s more pronounced oil price sensitivity can actually be a plus given the current oil supply-demand dynamics.Both US oil inventories and U.S. strategic petroleum reserve (SPR) are currently among decade lows, creating good odds for oil price rebound and stronger alphas potential for CVX.This idea was discussed in more depth with members of my private investing community, Envision Early Retirement. Learn More »Sitewide Sale 2026: Get 20% Off matejmo/iStock via Getty Images

EPD and CVX stock: oil price sensitivity I last covered Enterprise Products Partners L.P. (NYSE:EPD) on May 6. The article rated the stock as hold as examining EPD’s capex plan, capital project pipeline, and valuation. As for

20.72K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of EPD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

In the latest close session, Enterprise Products Partners (EPD - Free Report) was down 2.8% at $36.09. This move lagged the S&P 500's daily loss of 0.1%. Elsewhere, the Dow saw an upswing of 0.35%, while the tech-heavy Nasdaq depreciated by 0.43%.

Heading into today, shares of the provider of midstream energy services had lost 3.31% over the past month, outpacing the Oils-Energy sector's loss of 7.58% and lagging the S&P 500's loss of 1.34%.

Investors will be eagerly watching for the performance of Enterprise Products Partners in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.73, indicating a 10.61% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $13.49 billion, showing a 18.73% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.98 per share and a revenue of $56.02 billion, signifying shifts of +12.03% and +6.51%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for Enterprise Products Partners. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.68% rise in the Zacks Consensus EPS estimate. Enterprise Products Partners is currently a Zacks Rank #3 (Hold).

Digging into valuation, Enterprise Products Partners currently has a Forward P/E ratio of 12.46. This signifies a discount in comparison to the average Forward P/E of 13.49 for its industry.

Investors should also note that EPD has a PEG ratio of 1.32 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Oil and Gas - Production Pipeline - MLB stocks are, on average, holding a PEG ratio of 1.32 based on yesterday's closing prices.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 35% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Enterprise Products Partners (EPD - Free Report) closed at $37.13 in the latest trading session, marking a +1.95% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 1.44%. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq decreased by 2.22%.

The provider of midstream energy services's stock has dropped by 8.1% in the past month, falling short of the Oils-Energy sector's loss of 7.14% and the S&P 500's gain of 0.08%.

The upcoming earnings release of Enterprise Products Partners will be of great interest to investors. On that day, Enterprise Products Partners is projected to report earnings of $0.73 per share, which would represent year-over-year growth of 10.61%. In the meantime, our current consensus estimate forecasts the revenue to be $13.49 billion, indicating a 18.73% growth compared to the corresponding quarter of the prior year.

EPD's full-year Zacks Consensus Estimates are calling for earnings of $2.98 per share and revenue of $56.02 billion. These results would represent year-over-year changes of +12.03% and +6.51%, respectively.

Any recent changes to analyst estimates for Enterprise Products Partners should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.68% higher. Enterprise Products Partners currently has a Zacks Rank of #3 (Hold).

Looking at valuation, Enterprise Products Partners is presently trading at a Forward P/E ratio of 12.22. This expresses a discount compared to the average Forward P/E of 13.26 of its industry.

One should further note that EPD currently holds a PEG ratio of 1.3. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. EPD's industry had an average PEG ratio of 1.3 as of yesterday's close.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 104, finds itself in the top 43% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

Key Takeaways ABT's EPD sales rose 9% in Q1 2026, led by broad-based demand across emerging markets.ABT's Key Emerging Markets sales grew 9.4%, with double-digit gains across Latin America and Asia Pacific.Abbott expanded biosimilars through launches, approvals and new denosumab approvals in Brazil. Abbott’s (ABT - Free Report) Established Pharmaceuticals Division (“EPD”) is heavily focused on emerging markets. In the first quarter of 2026, the segment posted 9% year-over-year sales growth, supported by broad-based demand across the markets it serves. Within this, sales in Key Emerging Markets increased 9.4%, including double-digit growth in several countries across Latin America and the Asia Pacific regions.

These markets represent compelling growth opportunities for branded generic medicines due to favorable healthcare, economic and demographic trends, including higher birth rates, an expanding middle class and aging populations. Abbott is addressing the growing demand through a diversified portfolio of branded generic medicines tailored to local needs, with a focus on key therapeutic areas, including cardiometabolic, gastroenterology and central nervous system/pain management. Meanwhile, Other Emerging Markets, excluding the effect of foreign exchange, increased 7.9% in the quarter.

Abbott is expanding existing brands into new markets, implementing product enhancements and pursuing strategic licensing opportunities. It continues to work on further developing key brands such as Creon, Duphaston, Femoston and Influvac.

Abbott’s expanded collaboration with mAbxience in 2023 complements its existing branded generic medicine portfolio with biosimilars. Under the partnership, the Spain-based biotech leader will develop and manufacture the biosimilar molecules, while Abbott will leverage its large emerging market footprint to commercialize them.

In 2025, Abbott broadened its biosimilar presence through launches and approvals across multiple markets, including the first denosumab biosimilar in Thailand, the first Clesoniz (Bevacizumab) biosimilar launch in Malaysia and its first biosimilar approval in Brazil with Bisintex (Trastuzumab). More recently, Abbott received regulatory approval from Anvisa (Brazilian Health Regulatory Agency) for two new denosumab biosimilar medications in Brazil (60 mg and 120 mg), expanding access to advanced therapies for osteoporosis and cancer-related bone complications.

Some Updates From ABT PeersLabcorp (LH - Free Report) has announced the nationwide availability of ColoSense, the only RNA-based at-home test for colorectal cancer (CRC) screening approved by the FDA. The test is offered through a commercial collaboration with test developer Geneoscopy and expands Labcorp's comprehensive portfolio of CRC solutions. Following the Centers for Medicare & Medicaid Services update to the National Coverage Determination in June, ColoSense is now covered for eligible Medicare and Medicare Advantage beneficiaries.

Becton, Dickinson and Company (BDX - Free Report) , or BD, was awarded an Innovative Technology contract from Vizient for its BD CentroVena One Insertion System. The contract was awarded following a review by hospital experts serving on Vizient's client-led councils and recognizes that CentroVena One offers unique capabilities through its all-in-one design with the potential to enhance clinical care, improve patient and clinician safety, and streamline procedural workflows.

ABT Price Performance, Valuation & EarningsYear to date, ABT shares have plunged 27.9% compared with the industry’s 25% decline. 

Image Source: Zacks Investment Research

Abbott is trading at a forward, 12-month Price/Sales (P/S) of 3.00X, lower than its median but above the industry average.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Abbott’s 2026 and 2027 earnings has been revised downward in the past 90 days.

Image Source: Zacks Investment Research

Abbott currently carries a Zacks Rank #4 (Sell).  

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Converging forces are pushing rates higher in 2026. The Iran conflict closed the Strait of Hormuz, spiking crude oil prices and raising production and transport costs. This energy shock drove inflation higher, with the Consumer Price Index rising 3.8%, which was the sharpest increase in three years and well above the Federal Reserve’s 2% target. This, in turn, has prompted lenders to demand higher rates to protect returns. Meanwhile, investors sold bonds amid rising inflation and concerns about U.S. debt, lifting Treasury yields. Since mortgage rates are based on the 10-year Treasury yield plus a risk premium, they rose in tandem. On the fiscal side, federal interest payments now exceed spending on Medicaid, national defense, and all nondefense discretionary programs combined, adding further upward pressure on long-term borrowing costs. Experts say rates will only fall if geopolitical tensions ease, oil prices stabilize, and inflation remains under control, outcomes that remain uncertain at best.

Typically, when interest rates go higher, these four sectors tend to win:

Financials Energy Healthcare Industrials We screened our 24/7 Wall St. dividend stocks database for quality companies that pay big, dependable dividends and generate reliable passive income. We found four companies, one in each sector, that are solid bets if the upward trend in interest rates remains in place. All are rated Buy by the top Wall Street firms we cover.

Financials Financials are the biggest winner. Banks earn a wider spread between what they pay depositors and what they charge borrowers. Insurers earn more on their investment portfolios. The sector almost mechanically benefits from rising rates, as net interest income rises.

U.S. Bancorp Based in Minneapolis, this super-regional financial giant is an outstanding choice for growth and income investors now, offering a hefty 3.56% dividend. U.S. Bancorp (NYSE: USB | USB Price Prediction) is a financial services holding company.

The bank’s segments are:

Wealth Corporate Commercial and Institutional Banking Consumer and Business Banking Payment Services Treasury and Corporate Support It offers a comprehensive range of financial services, including lending and deposit services, cash management, capital markets, and trust and investment management services. It also engages in credit card services, merchant and ATM processing, mortgage banking, insurance, brokerage, and leasing.

The company’s banking subsidiary, U.S. Bank National Association (USBNA), is engaged in the banking business, principally in domestic markets. USBNA provides a range of products and services to individuals, businesses, institutional organizations, governmental entities, and other financial institutions.

The non-banking subsidiaries offer investment and insurance products to customers primarily within their domestic markets, as well as fund administration services to a range of mutual and other funds.

Oppenheimer has assigned an Outperform rating with a target price of $74.

Energy Energy benefits because rate hikes typically coincide with inflation, and oil/gas prices are a primary driver of inflation. Higher commodity prices translate to higher revenues. It is the inflation-hedge play and has been the strongest-performing S&P sector so far in 2026.

Enterprise Products Partners This top American midstream natural gas and crude oil pipeline company is headquartered in Houston, Texas. Enterprise Products Partners (NYSE: EPD) is one of the most extensive publicly traded energy partnerships and pays a reliable 5.88% dividend. The company’s debt-to-EBITDA ratio ranges from 3.1x to 3.4x, which is moderate for a midstream energy company, and its interest coverage ratio is 5x.

Enterprise Products Partners generates strong free cash flow, with an operating cash flow of approximately $8.8 billion, resulting in approximately $4.2 billion in free cash flow annually after deducting capital expenditures. Another significant benefit for shareholders is that most of the corporate debt is fixed-rate, thereby limiting the risk of rising interest rates.

Enterprise Products Partners provides various midstream energy services, including:

Gathering, processing, transporting, and storing natural gas, natural gas liquids (NGL), and fractionation Import and export terminalling Offshore production platform services The company has four reportable business segments:

Natural Gas Pipelines and Services NGL Pipelines and Services Petrochemical Services Crude Oil Pipelines and Services One reason many analysts like the stock might be its distribution coverage ratio. The company’s coverage ratio is well above 1x, making it relatively less risky among the master limited partnerships.

Citigroup has a Buy rating with a $44 target price.

Healthcare Pricing power and steady demand insulate the top healthcare names. They don’t directly benefit from higher rates, but they tend to hold up well because their earnings don’t erode as much as those of interest-sensitive sectors.

Bristol-Myers Squibb Bristol-Myers Squibb (NYSE: BMY) is a global biopharmaceutical company discovering, developing, and delivering innovative medicines for patients with serious diseases across oncology, hematology, immunology, cardiovascular disease, neuroscience, and other therapeutic areas. It remains a solid pharmaceutical stock to own in the long term, offering an outstanding entry point with a reliable 4.45% dividend.

The company’s platforms comprise chemically synthesized or small-molecule drugs, including protein degraders, as well as biologics produced through biological processes. These platforms also encompass ADCs, CAR-T cell therapies, and radiopharmaceutical therapeutics.

Small-molecule drugs are typically administered orally in tablet or capsule form, although other drug-delivery mechanisms are also used. Biologics are usually administered by injection or intravenous infusion. CAR-T cell therapies are administered by intravenous infusion.

Bristol-Myers Squibb’s growth portfolio includes:

Opdivo Opdivo Qvantig Orencia Yervoy Reblozyl Opdualag Its legacy portfolio includes:

Eliquis Revlimid Pomalyst/Imnovid Sprycel Abraxane Bank of America has a Buy rating with a $67 target price.

Industrials Industrial stocks often perform well in rising-rate environments because rate hikes can signal a strengthening and expanding economy. As businesses ramp up activity, demand for heavy equipment, machinery, and manufacturing capacity increases. This allows these cyclical companies to secure stronger order books and exercise greater pricing power, more than enough to offset their higher cost of capital.

Stanley Black & Decker Stanley Black & Decker (NYSE: SWK) is the world’s largest tool company, with 50 manufacturing facilities in the United States and more than 100 worldwide. It trades at 13.54 times forward earnings estimates. With the potential for the economy to slow somewhat, you can bet that the do-it-yourself legions will fix rather than buy new, and this legendary stock is a solid idea now, while yielding a large 3.96% dividend.

Stanley Black & Decker provides hand tools, power tools, outdoor products, and related accessories in the United States, Canada, the Other Americas, Europe, and Asia. Its Tools & Outdoor segment offers professional-grade corded and cordless electric power tools and equipment, including:

Drills Impact wrenches and drivers Grinders, saws, routers, and sanders Pneumatic tools and fasteners, such as nail guns, nails, staplers and staples, and concrete and masonry anchors; corded and cordless electric power tools Hand-held vacuums, paint tools, and cleaning appliances Leveling and layout tools, planes, hammers, demolition tools, clamps, vises, knives, saws, chisels, and industrial and automotive tools Drill bits, screwdriver bits, router bits, abrasives, saw blades, and threading products Toolboxes, sawhorses, storage cabinets, and engineered storage solutions Electric and gas-powered lawn and garden products This segment sells its products under such brand names as:

DeWalt Craftsman Black+Decker Stanley Flex Volt Irwin Lenox The company’s Industrial segment provides:

Threaded fasteners, blind rivets and tools, blind inserts and tools Drawn arc weld studs and systems Engineered plastic and mechanical fasteners Self-piercing riveting systems Precision nut running systems Micro fasteners High-strength structural fasteners Axle swage, latches, heat shields, pins, couplings, fittings, and other engineered products Attachments used on excavators and handheld tools The Industrial segment sells its products through a direct sales force and third-party distributors to various industries, including automotive, manufacturing, electronics, construction, and aerospace.

Barclays has an Overweight rating and a $95 target price on the shares.

The S&P 500's dividend yield is near record lows at around 1%. That's making it a bit more challenging to find quality higher-yielding stocks to generate durable dividend income. However, there are still some high-quality income stocks available today.

The energy sector has several top-flight high-yielding dividend stocks. Here are three excellent options for those with $1,000 (or less) to invest right now.

Image source: Getty Images.

Brookfield Infrastructure Brookfield Infrastructure (BIPC +0.76%)(BIP +0.54%) is a leading global infrastructure investor. The company owns and operates a diversified portfolio of economically crucial infrastructure across the utilities, transport, midstream, and data sectors. Most of its assets generate revenue under long-term contracts or government-regulated frameworks, providing it with stable, inflation-linked cash flows (85% of its funds from operations or FFO).

The company pays out 60% to 70% of its stable cash flows in dividends. It currently yields 4.5%. At that rate, a $1,000 investment would generate about $45 of annual dividend income.

Brookfield retains the remainder of its cash flow to help fund its growth. The company's growth drivers include inflation-linked contractual rate increases, volume growth as the global economy expands, capital projects, and acquisitions. It currently has over $9.1 billion of capital projects underway, including new data centers, two semiconductor fabrication complexes, and utility expansions. Additionally, Brookfield has secured over $1.5 billion in new investments in the past year, including an investment in a leading U.S. refined petroleum products pipeline system.

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Brookfield Infrastructure's growth drivers should fuel more than 10% annual FFO per share growth going forward. That should support annual dividend growth of 5% to 9%. Brookfield has increased its dividend for 17 straight years (every year since its formation), growing it at a 9% compound annual rate.

Clearway Energy Clearway Energy (CWEN +1.77%) is a leader in owning clean power generation capacity, including renewable energy and natural gas-fired power plants. It sells the electricity these assets produce to utilities and large corporations under long-term, fixed-rate power purchase agreements. Those contracts generate stable cash flow. Clearway targets paying less than 70% of its cash flow in dividends. It currently yields more than 4.5%.

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The company plans to invest over $3 billion into new clean energy projects, with the potential to invest more if it secures digital infrastructure investment opportunities and additional acquisitions. This investment level should support 7% to 8%+ annual cash flow per share growth through 2030. Meanwhile, Clearway believes it can grow its cash flow per share at a 5% to 8%+ annual rate beyond 2031.

Clearway's growth strategy should support continued dividend increases. The company has increased its payout every quarter since 2020.

Enterprise Products Partners Enterprise Products Partners (EPD +0.22%) is one of the country's largest energy midstream companies. The master limited partnership (MLP), which sends a Schedule K-1 Federal Tax form each year, operates pipelines, processing plants, petrochemical facilities, and export terminals. Most of its assets generate predictable cash flows secured by long-term contracts and government-regulated rate structures.

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The MLP currently has a distribution yield of more than 6%. It covered that payout by a comfortable 1.8 times last quarter. That enabled it to retain $1.5 billion in cash to reinvest in the partnership.

Enterprise Products Partners currently has $5.3 billion of major capital projects under construction, including new gas processing plants, a pipeline expansion, and some additional export capacity. It expects these projects to enter commercial service by the end of next year. They'll give the MLP more fuel to increase its high-yielding distribution. Enterprise Products Partners has already raised its payout for 27 consecutive years.

Top-notch income stocks Brookfield Infrastructure, Clearway Energy, and Enterprise Products Partners generate very stable cash flow, enabling them to support their high-yielding dividends and growth strategies. Those growth investments should provide these energy companies with the fuel to continue increasing their payouts. That makes them ideal high-yielding stocks to invest $1,000 in right now for income.

The Federal Reserve has a new chair, and Kevin Warsh’s first Federal Open Market Committee meeting at the helm gives investors their first real look at how he may steer interest-rate policy. Investors aren’t expecting any change in interest rates at this meeting, but will be looking for clues about the next directional decision.

In January 2026, investors believed multiple rate cuts were inevitable this year. However, the U.S. conflict with Iran has complicated those expectations. Inflation, which was already stubbornly above the Fed’s preferred 2% target, has started to climb, fueled by higher energy prices. Last month’s Jobs report came in hotter than expected.

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Together, sticky inflation and a resilient labor market give the Federal Reserve less reason to cut rates quickly. The same data is also raising the possibility that rates may stay elevated longer, with another hike still on the table if inflation keeps rising. The CME FedWatch tool puts the odds of a September rate hike at around 25%. That increases to about 42% in December.

How Should Investors Think About the Federal Reserve?Most long-term investors shouldn’t build an entire strategy around a single Federal Reserve meeting. But understanding how inflation and employment shape rate policy can help investors identify stocks and sectors better suited to the current environment.

Warsh has expressed interest in changing how the Federal Reserve evaluates the economy and communicates policy. Investors shouldn’t expect any of those reforms to be part of this meeting, but they may get clues about how the Fed will operate going forward.

With the FedWatch tool suggesting interest rates could stay unchanged until at least September, summer may be a good time to look at stocks that tend to perform well in higher-rate environments.

JPMorgan Chase Benefits From Higher Lending MarginsJPMorgan Chase & Co. Today

JPM

JPMorgan Chase & Co.

$331.13 +11.73 (+3.67%)

As of 06/16/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$267.80▼

$337.25Dividend Yield1.81%

P/E Ratio15.86

Price Target$339.08

JPMorgan Chase NYSE: JPM is as close to a direct beneficiary of rising rates as investors will find. When interest rates climb, banks earn more on the spread between what they pay depositors and what they charge borrowers. JPMorgan Chase is built to capture that spread at scale.

The bank reported $25.1 billion in net interest income in Q1 2026, up 7% year over year. Full-year 2026 net interest income is guided at approximately $104.5 billion. That number only gets better if the Fed raises interest rates.

Beyond traditional bank lending, JPMorgan Chase is the top-ranked firm in M&A advisory and equity underwriting as of Q1 2026. Its investment banking and trading operations give it multiple ways to generate revenue beyond lending alone.

If rate hike fears drive market volatility, JPMorgan Chase's trading desks tend to benefit from increased client activity. Q1 2026 saw record market revenue of $11.6 billion, alongside a 28% increase in investment banking fees. At around 15x earnings, JPM stock isn't cheap by historical standards, but it's earning that premium.

Enterprise Products Partners Offers Income in Any Rate EnvironmentEnterprise Products Partners Today

EPD

Enterprise Products Partners

$36.49 -0.01 (-0.04%)

As of 06/16/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$30.01▼

$40.17Dividend Yield6.03%

P/E Ratio13.51

Price Target$39.67

Not every rate-environment play requires betting on the next Fed decision. Enterprise Products Partners NYSE: EPD offers investors something more straightforward: a consistent, growing income stream backed by essential energy infrastructure.

Enterprise Products Partners operates one of the largest midstream pipeline networks in North America, moving natural gas, crude oil, and petrochemicals across the country. The company moves more than 12 million barrels of energy equivalents daily. That volume generates stable fee-based cash flow regardless of commodity prices — or what the Fed does next.

EPD has raised its dividend for 28 consecutive years. The current annualized dividend is $2.20 per share, yielding close to 6%. That yield looks increasingly attractive as investors recalibrate expectations away from rate cuts. In an environment where "higher for longer" is back on the table, a near-6% dividend from a financially disciplined infrastructure business is hard to ignore.

Berkshire Hathaway Turns High Rates Into OpportunityBerkshire Hathaway Today

$494.81 -0.71 (-0.14%)

As of 06/16/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$455.18▼

$516.85P/E Ratio14.73

Price Target$524.50

For years, Berkshire Hathaway NYSE: BRK.B and its massive cash pile drew criticism. Critics called it lazy capital. Today, with rates elevated and rate hike odds climbing, the company’s cash is generating meaningful returns. That gives Berkshire optionality that most companies can only dream about.

Berkshire's current cash balance sits at nearly $400 billion. The bulk of it is parked in short-term Treasury bills, which now yield enough to move the needle on Berkshire's balance sheet. Insurance underwriting profit and investment income have both benefited from higher interest rates and disciplined pricing.

There's also a competitive advantage angle. If rates rise and markets pull back, Berkshire’s business model lets it deploy that cash at better prices. Plus, higher interest rates generally benefit Berkshire's insurance float earnings, while its defensive characteristics make it a staple in conservative portfolios during market downturns. BRK.B won't chase the market higher, but in uncertain rate environments, that's exactly the point.

Should You Invest $1,000 in JPMorgan Chase & Co. Right Now?Before you consider JPMorgan Chase & Co., you'll want to hear this.

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Rate cuts appear to be off the table for now due to surging inflation and a relatively strong jobs market. The current dynamics could drive increased market volatility, but they could also make dependable income more appealing to investors.

The good news is that there are plenty of stocks that offer attractive dividends and are good picks. Here are three high-yield dividend stocks to buy hand over fist in June.

1. AbbVie AbbVie (ABBV +1.32%) markets 12 blockbuster drugs. Seven of them generate annual sales of over $2 billion, with autoimmune disease therapies Skyrizi and Rinvoq at the top of the list.

The pharma stock is a member of the Dividend Kings, a group limited only to stocks with at least 50 consecutive dividend increases. AbbVie's streak of dividend hikes now stands at 54 years, including the time it was part of Abbott Labs (ABT 1.64%). Its dividend yield tops 3%.

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Aside from its strong dividend, what makes AbbVie a great pick to buy in June? For one thing, the company is poised to deliver solid growth. AbbVie's product lineup includes at least a dozen drugs whose sales increased by double digits year over year in the latest quarter. The big drugmaker's pipeline also includes around 60 programs in mid- or late-stage clinical studies that could fuel additional growth in the coming years.

Another big plus for AbbVie is that its stock remains attractively valued despite delivering solid returns over the last 12 months. Shares trade at roughly 15.8 times forward earnings, well below the S&P 500 (^GSPC +0.50%) healthcare sector average of 17.2.

2. Chevron Few companies are better positioned to benefit from the high energy prices driving inflation to soar than Chevron (CVX +0.75%). It's the world's third-largest energy company by market cap -- and the second-largest based in the U.S.

Image source: Getty Images.

Chevron isn't a member of the Dividend Kings yet. However, the company has increased its dividend for an impressive 39 consecutive years. Its dividend growth has handily outpaced top rivals ExxonMobil (XOM +0.28%), Shell (SHEL 0.22%), BP (BP +0.23%), and Total Energies (TTE +0.34%) over the last two decades. Chevron's dividend yield of 3.8% is also one of the juiciest among major oil companies.

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The energy giant consistently rewards shareholders with what some call "invisible" dividends, too -- stock buybacks. Chevron has repurchased shares in 18 of the last 22 years. Management targets buybacks of between 3% and 6% of outstanding shares per year going forward.

Chevron expects to deliver average annual earnings-per-share growth of over 10%. Even if oil prices fall below $50 per barrel, Chevron will be able to fund the dividend and planned capital expenditures.

3. Enterprise Products Partners Enterprise Products Partners (EPD 0.08%) isn't as well-known as Chevron, but I think it's one of the best energy stocks for income investors to buy this month. The limited partnership (LP) is a leader in the U.S. midstream energy industry, operating over 50,000 miles of pipeline.

If you're looking for an especially high yield, Enterprise could be just the ticket. Its distribution yield currently stands at 5.8%. Even better, the company has increased its distribution for 27 consecutive years.

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Enterprise Products Partners shouldn't have any problems extending that streak. Its strong balance sheet has earned the company the highest credit rating in the midstream energy industry. Enterprise's leverage ratio is a respectable 3.2x. Around 90% of its long-term contracts are insulated from inflation through escalation provisions.

The pipeline stock could deliver solid growth, too. The Iran war has driven higher demand for U.S.-produced natural gas liquids (NGLs). Data centers hosting artificial intelligence (AI) applications require massive amounts of power, with natural gas providing an ideal fuel source. Enterprise's energy infrastructure assets position the company well to benefit from these trends.

Keith Speights has positions in AbbVie, Chevron, Enterprise Products Partners, and ExxonMobil. The Motley Fool has positions in and recommends AbbVie, Abbott Laboratories, and Chevron. The Motley Fool recommends BP and Enterprise Products Partners. The Motley Fool has a disclosure policy.

Not every opportunity in the market needs to involve AI, rockets, or triple-digit revenue growth. Some of the most reliable returns come from the least exciting corners of the market: tobacco, pipelines, and single-tenant retail real estate.

The three names below are unrelated to the technology trade. What they do have is meaningful dividend yields, durable cash flows, and, perhaps most interestingly right now, technical setups that suggest the quiet outperformance they have delivered this year may have further to run. For income investors who also appreciate a constructive chart, these three are worth a closer look.

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Altria: A Near 6% Yield and an Almost 24% YTD GainAltria NYSE: MO is about as far from a momentum trade as it gets, yet the stock is quietly up almost 24% year to date, outpacing the broader market by a wide margin. The tobacco giant behind Marlboro in the U.S. pays a dividend yielding 5.9%, backed by one of the most consistent dividend track records in the entire market, with over 55 consecutive years of increases. Trading at a forward P/E of just 13, the valuation remains undemanding even after the year-to-date run.

Altria Group Today

MO

Altria Group

$71.83 +0.42 (+0.59%)

As of 06/12/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$54.70▼

$74.56Dividend Yield5.90%

P/E Ratio15.03

Price Target$70.44

The fundamental picture remains steady. Net margins well above 30% reflect the pricing power that has defined the business for decades, and the company continues to return capital through both its dividend and ongoing buybacks. The next ex-dividend date is June 15, with payment on July 10.

From a technical perspective, the current formation is extremely bullish. The stock continues to hold above prior resistance near $70, and consolidate just 4% away from its 52-week high and breakout level. A move through the 52-week high, near $74, could spark a new wave of upside momentum.

Enterprise Products Partners: Midstream Income With an AI KickerEnterprise Products Partners NYSE: EPD is one of the highest-quality income vehicles in the energy sector. The master limited partnership operates an extensive network of pipelines, storage, processing, and export infrastructure across North America. The company generates predominantly fee-based cash flows that have supported 28 consecutive years of distribution increases. The current yield stands at 5.9%, with the stock up about 17% year-to-date and trading at a forward P/E of 12.

Enterprise Products Partners Today

EPD

Enterprise Products Partners

$37.28 +0.01 (+0.01%)

As of 06/12/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$30.01▼

$40.17Dividend Yield5.90%

P/E Ratio13.81

Price Target$39.67

What makes EPD particularly interesting right now is a developing demand catalyst that few associate with a pipeline operator: AI data centers. Surging electricity demand from data center buildouts is driving increased natural gas consumption, and Enterprise's infrastructure sits directly in the path of that flow. Based on 17 analyst ratings, the stock currently has a Hold consensus rating. However, its consensus price target of $39.67 implies about 6% of upside potential.

And as long as the stock can continue to hold major multi-month support above $37, the bulls will remain in control. Since March, the stock has been consolidating in a wide base above $37, with $40 acting as major resistance. In the months to come, it will be vital for the bulls to defend the support zone if bullish momentum is to persist.

NNN REIT: A Monthly-Like Income Machine at Fresh 52-Week HighsNNN REIT NYSE: NNN is the very definition of a boring business done exceptionally well. The Orlando-based REIT owns over 3,000 single-tenant retail properties across the United States. The properties are leased to necessity-based operators like convenience stores, quick-service restaurants, and auto service centers under long-term triple-net leases. Tenants cover taxes, insurance, and maintenance, leaving NNN with predictable, bond-like cash flows. That model has funded 35 consecutive years of dividend increases, a streak only a handful of REITs in America can match. The current yield is 5.1%.

NNN REIT Today

$46.52 +0.41 (+0.88%)

As of 06/12/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$38.90▼

$46.90Dividend Yield5.16%

P/E Ratio22.58

Price Target$45.65

The stock closed Tuesday up 2.18% at $45.98, a fresh 52-week closing high, and is now up 16% year-to-date. Notably, Tuesday’s surge also confirmed a major multi-month breakout. Since February, the stock had been stuck in a sideways bullish consolidation. But Tuesday’s move blasted through the $45 resistance, confirming a breakout. Momentum is now firmly in the bulls' favor, but for that to continue, the stock will need to hold above $45.

At a forward P/E of almost 13 with close to a 99% occupancy rate, the valuation remains reasonable for the consistency on offer.

Analysts hold a consensus Hold rating, with 13 analysts and a price target of $45.65, which is roughly where the stock is currently trading.

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Key Takeaways EPD's fee-based contracts and vast pipeline network help reduce commodity price exposure.Enterprise returned $5.1B in capital over the trailing-12 months ended Q1 2026.EPD plans to align distribution growth with operational DCF per unit while preserving financial flexibility. Enterprise Products Partners LP (EPD - Free Report) , a well-known name in the midstream energy landscape, earns consistent fee-based income backed by long-term contracts with shippers. The partnership owns a pipeline network that spans more than 50,000 miles, transporting crude oil, natural gas, natural gas liquids and refined products across North America. EPD’s midstream business model reduces exposure to commodity price volatility and supports stable cash flow generation. This enables the partnership to consistently return capital to unitholders across business cycles.

The partnership has returned more than $63 billion to equity investors through distributions and buybacks since its IPO. For the trailing-12 months ended in the first quarter of 2026, Enterprise returned approximately $5.1 billion of capital. Of this amount, 93% or approximately $4.8 billion was returned directly to unitholders in the form of distributions, while the remaining 7% through common unit repurchases. Notably, the partnership has consistently increased its distribution to unitholders for 27 consecutive years.

Enterprise’s consistent distribution growth is supported by a disciplined approach to capital allocation. The partnership has highlighted that moving forward, its distribution growth will be consistent with its growth in operational distributable cash flow (DCF) per unit. Operational DCF is a liquidity measure that represents the cash available for distributions that is generated from its core operations.

Additionally, the partnership noted that its discretionary free cash flow, which is anticipated to reach $1 billion in 2026, will be allocated toward paying down its debt and unit buybacks. This approach enables EPD to preserve its financial flexibility while supporting consistent capital returns.

Other Energy Sector Players Prioritize Shareholder ReturnsSunoco LP (SUN - Free Report) is a wholesale motor fuel distributor in the United States, distributing motor fuels of several brands through long-term distribution agreements with nearly 9,000 distribution facilities, which support steady cash flows. The partnership declared a distribution of 98.99 cents per unit in the first quarter of 2026, marking a sequential increase of 6.25% or a 10% increase from the prior-quarter figure of 89.76 cents per unit. For 2026, the partnership aims to meet its distribution growth target of at least 5%. This reflects the partnership’s strong commitment to returning capital to unitholders.

Antero Midstream (AM - Free Report) provides integrated midstream services to the leading natural gas producer, Antero Resources Corporation, under long-term contracts. This enables the midstream player to generate stable earnings and cash flows. Antero Midstream continues to return capital to shareholders through a combination of dividends and share repurchases. The company repurchased 1.0 million shares under its authorized share repurchase program in the first quarter of 2026. This reflects the company’s commitment to returning capital to shareholders. 

EPD’s Price Performance, Valuation & EstimatesEnterprise Products units have jumped 16.6% over the past year compared with the 11.8% improvement of the composite stocks belonging to the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, EPD trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 11.38X. This is below the broader industry average of 11.85X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for EPD’s 2026 earnings has remained unchanged over the past seven days.

Image Source: Zacks Investment Research

EPD, SUN and AM each currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

With surging oil prices due to the war with Iran and the closure of the Strait of Hormuz, energy stocks have gotten a strong lift this year. However, if you're looking for energy stocks to buy and hold for the long term, I'd skip the oil patch and look toward the midstream sector.

The pipeline companies in the sector are typically involved in the transportation of fossil fuels and generally act as energy toll roads. The businesses nowadays tend to be largely fee-based, and with increasing energy needs from the rise of artificial intelligence (AI), many have strong growth project backlogs.

Let's look at three pipeline stocks to own for the long haul.

Image source: Getty Images.

1. Energy Transfer Energy Transfer (ET +1.60%) owns one of the largest integrated midstream systems in the U.S., and its strong position in the Permian Basin gives it access to some of the cheapest natural gas in the U.S. This has made it one of the biggest beneficiaries in the midstream space when it comes to AI. It has several growth projects to supply natural gas directly to data centers or to nearby utilities, as well as two large pipeline projects that transport natural gas from the Permian to the Arizona/New Mexico markets and to Texas.

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Overall, Energy Transfer has one of the largest growth project backlogs of any midstream company, with a projected growth capital expenditures budget of between $5.5 billion and $5.9 billion this year. With expected mid-teens returns from these projects, the company is poised for strong growth in the coming years. Along with its growth, the master limited partnership (MLP) also sports a well-covered 6.7% yield, while it plans to grow its distribution at a 3% to 5% yearly pace.

Overall, Energy Transfer is a great combination of a growth and high-yield name rolled into one.

2. Enterprise Products Partners Another MLP, Enterprise Products Partners (EPD +0.16%), has a strong track record of being one of the most consistent stocks in the midstream space. The company has increased its distribution for 27 straight years across all market types. Conservative by nature, Enterprise has one of the strongest balance sheets in the space, with low leverage (3.2 times last quarter) and low-cost debt locked in for an average of 17 years. It currently has a 5.6% yield, which it has been growing at around a 3% annual clip.

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The company is not as aggressive on growth projects as Energy Transfer, but it expects strong double-digit earnings before interest, taxes, depreciation, and amortization (EBITDA) and cash flow growth next year as projects come online. Meanwhile, it is expected to generate $1 billion in free cash flow after paying out its distribution this year, which it will use to pay down debt and buy back stock.

If your main concern is finding a stock you can rely on for a growing distribution, Enterprise is the stock for you.

3. Williams Companies If you're more interested in growth than income, Williams Companies (WMB +2.31%), which is not an MLP, could be the stock for you. The company owns arguably the most valuable pipeline system in the country, Transco, which traverses the East Coast, delivering natural gas from Appalachia to the Gulf Coast. It's also the asset that keeps on giving, as Williams continues to execute multiple expansion projects tied to the pipeline.

The company is also building out its pipeline systems in the Mountainwest and Northwest and has begun delivering turnkey power solutions to AI data centers. This is a newer, fast-growing segment that provides on-site gas-fired power generation plants for data centers, bypassing local utilities.

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Williams is set to spend a whopping $7 billion to $7.6 billion on growth projects this year. It has a backlog of $15.5 billion in transmission projects and another $9.6 billion in power solution projects. Meanwhile, it believes it can achieve a top-notch return of 20% or more on its invested capital.

The company is becoming a big-time player in powering AI data centers and a top energy growth stock to own long-term.