Enterprise Products Partners (NYSE:EPD | EPD Price Prediction) reports third-quarter results on Oct. 29. Units have gained 21% year to date. The report should demonstrate that a $6.5 billion project backlog can exist alongside with about $34 billion of debt.…
Enterprise Products Partners (NYSE:EPD | EPD Price Prediction) reports third-quarter results on Oct. 29. Units have gained 21% year to date. The report should demonstrate that a $6.5 billion project backlog can exist alongside with about $34 billion of debt.
A Record Quarter Fueled Partly by a Geopolitical Windfall Last quarter brought EPS of $0.84 and revenue of $18.27B, up 60.8% year over year. Adjusted EBITDA hit a record $2.83B, and distributable cash flow covered the distribution 1.9x. Marine terminals handled 2.8 MMBPD, up 33%.
Middle East disruption caused much of that strength. Management tied about $200 million to April and May export demand and said those cash differentials have largely normalized. Marine volumes returned to normal by June and July.
Meanwhile, the backlog grew from $5.3B to $6.5B with two new Permian plants and a new Mont Belvieu fractionator. Units sit at $37.08, down 1.3% over the past month.
Consensus Points to Double-Digit Growth Metric Estimate Prior-Year Actual Implied Growth Q3 2026 EPS $0.7344 $0.61 20.4% Q3 2026 Revenue $14.98B $12.02B 24.6% FY2026 EPS $3.065 $2.66 15.2% FY2026 Revenue $62.80B $52.60B 19.4% Permian Throughput and Capex Discipline Will Set the Tone Volumes come first for me. Permian inlet volumes rose 14% to 4.3 Bcf/d last quarter, and basin NGL pipelines run at 86% of capacity. Management noted about 2 Bcf/d of cutback gas that could return. The EIA expects Permian gas output to grow 6% this year on rising gas-to-oil ratios.
Next, the LPG export expansion is due by year-end and is about 90% signed. I’ll be watching for timing confirmation, since new industry export capacity could pressure terminal fees over the next 12 to 18 months.
The balance sheet matters just as much. Total debt was $34.0B at June 30 versus $34.9B at year-end 2025, with net leverage at the 3.0 target. About 97% of that debt is fixed rate at a 4.7% average cost, which cushions rate pressure. 2026 growth capex guidance stands at $2.9-$3.4B.
You should also look at capital returns. Buybacks totaled $159M in Q2, using 34% of the $5.0B authorization, alongside a $0.56 quarterly distribution. Co-CEO Jim Teague announced his retirement on the July 30 call, so leadership tone carries extra weight.
Free Cash Flow Promises Face a $3 Billion Spending Reality A year ago, management called 2026 a “free cash flow inflection point.” Since then, growth capex rose by over $700 million, and co-CEO Randy Fowler said $3 billion might be the new level. Discretionary free cash flow could still approach the $1 billion area. If third-quarter EBITDA holds up without the spring windfall while debt remains flat, the volume-driven growth story behind 27 straight years of distribution increases looks durable heading into 2027.
Contact [email protected] for any questions or corrections.
Pipeline stocks like MPLX and Energy Transfer keep handing investors yields above 6%, but the cash flow statements hiding beneath those steady checks tell a very different story about how safe those payouts actually are.
Pipelines are where income investors go for yield, and MPLX (NYSE:MPLX | MPLX Price Prediction) pays about 7.4% at a unit price of $58.18. Long contracts make that check look safe. The risk sits in how the industry pays for growth. It hands most of its operating cash to investors and borrows to build. The practice is so common that few investors treat it as a warning sign anymore, and that is what makes it risky.
One key check: a payout holds up when operating cash flow covers both growth spending and the dividend. When it falls short, debt fills the gap, and the payout depends on lenders remaining generous.
Why Pipelines Borrow to Pay You The model makes sense. Pipeline assets last for decades. ONEOK (NYSE:OKE) says about 90% of its earnings are fee-based. The newest projects at Kinder Morgan (NYSE:KMI) run on “at least 20-year take-or-pay contracts”. Partnerships are built to pass cash through to unitholders. Demand keeps coming, too. Federal forecasters say rising Appalachian gas output “requires infrastructure buildout to move natural gas to the Gulf Coast”. Put together, that means the industry pays out its cash and borrows for new projects.
This screen covers Energy Transfer (NYSE:ET), Williams Companies (NYSE:WMB), MPLX, ONEOK, Kinder Morgan and Enterprise Products Partners (NYSE:EPD), ordered from most exposed to most conservative. These yields hold up even as share prices have risen. Energy Transfer is up 28.66% year to date, and MPLX is up 15.44%. The warning signs are in the cash flow statements.
Energy Transfer (ET): Debt Climbing Faster Than the Payout Energy Transfer yields about 6.8% on a $1.36 annualized distribution and has raised the payout for 19 straight quarters. Second-quarter distributable cash flow (DCF), the key coverage metric for a partnership, was $2.6 billion. That covered the $1.241 billion paid out about 2.1x.
Full-year figures show more pressure. In 2025, operating cash flow of $10.149 billion came up $879 million short of covering capex and distributions combined. Total debt reached $70.241 billion, up from $60.558 billion at the end of 2024. Management expects growth spending of “$5 billion plus” each year through the end of the decade, and its leverage target is 4 to 4.5 times EBITDA. Energy Transfer has cut before: quarterly distributions paid fell from $819 million to $405 million in late 2020. To keep the payout safe, signed projects like Hugh Brinson need to increase up as planned.
Williams (WMB): Spending Now Outruns Operating Cash At about 3.0%, Williams has the lowest yield in the group. It also has the tightest cash position. Second-quarter capex of $1.834 billion was higher than operating cash flow of $1.376 billion, and cash fell 77.5% to $203 million. Growth capex guidance of $7.3 to $7.9 billion is close to adjusted EBITDA guidance of $8.3 to $8.5 billion. On top of that, the Momentum Midstream deal adds $5.5 billion and brings pro forma leverage to about 3.75x. Momentum and the power projects have to deliver EBITDA on schedule.
MPLX (MPLX): Fast Raises Meet a Bigger Build MPLX pays $1.0765 per quarter and plans 12.5% increases in both 2026 and 2027. DCF of $1.45 billion covers the distribution about 1.34x. However, second-quarter operating cash flow fell $215 million short of capex plus distributions. The partnership also raised 2026 capex guidance by $500 million to $2.9 billion. Leverage is 3.7x against a 4.0x ceiling. The CFO said growth later in 2026 “is going to give us confidence in 1.3x” coverage, so that increase has to show up.
ONEOK (OKE): A Thin Cash Cushion Behind a Steady Check ONEOK yields about 4.6%. In the first quarter of 2026, operating cash flow was $934 million, versus $864 million in capex and $674 million in dividends. At midyear, debt stood at $33.022 billion while cash was just $161 million. In its favor, ONEOK expects capex to ease toward $2 billion to $2.5 billion a year, and cash-tax benefits of about $2.6 billion should help free cash flow.
Kinder Morgan (KMI): Conservative, With a Growing Bill Kinder Morgan yields about 3.4%. Year to date, it generated $5.04 billion in operating cash, paid $1.98 billion in dividends, and has leverage of 3.5 times. The project backlog, though, grew to $14.4 billion. Management also said about $225 million of the 2026 outperformance came from items that may not repeat.
Enterprise Products Partners: Benchmark for Coverage Enterprise yields about 6.1% and covers its distribution 1.9x on a DCF basis. Its leverage remains at a 3.0 target, and 97% of its debt is fixed-rate at an average cost of 4.7%. It still plans about $3 billion of growth capex in 2027.
What Could Break the Model Borrowing to grow works as long as credit remains cheap. Three things could break it:
Refinancing at higher interest rates. Lenders pulling back. A drop in demand that reduces the cash flow used to justify the debt. Enterprise’s fixed-rate debt protects it. Energy Transfer runs at higher leverage, which leaves it more exposed.
When a dividend gets cut, the share price usually falls with it, so a high yield alone doesn’t justify buying a stock (we outlined the main red flags before a big payout gets cut in a free report here: Dividend Traps). In pipelines, start by checking DCF coverage, then free cash flow after the payout, then where leverage is heading.
Contact [email protected] for any questions or corrections.
Tobacco, pipelines, and wireless all have one thing in common: their customers keep paying even when the economy does not cooperate. Three stocks quietly raising their dividends right now could hand income investors a yield most savings accounts will never…
Tobacco, pipelines, and wireless service all keep getting paid through recessions because their customers keep buying. Altria (NYSE:MO | MO Price Prediction), Enterprise Products Partners (NYSE:EPD), and Verizon (NYSE:VZ) have done so over the past year. Verizon alone yields 6.54% on its forward payout at the latest price. All three cover their payouts with cash and still have money left over.
Altria Altria pays an annualized forward dividend of $4.44. At $72.26 a share, that works out to a forward yield of 6.14%. The trailing yield is 5.94%. The board declared its latest raise on August 27, 2026. The verified history shows the quarterly payment climbing every year, from $0.86 in 2021 to the current level.
On safety, the forward dividend uses about 79% of the low end of 2026 adjusted EPS guidance, which runs from $5.61 to $5.72. Debt-to-EBITDA stands at 1.9 times, close to the company’s target of about two times. Management said: “Historically, after we have the dividend, we have about a billion excess in cash.”
The bull case is pricing power. Marlboro’s retail price rose about 7% year over year. Smokable margins held at 64.8%, and on! PLUS now sells in 120,000 stores.
The main risk is volume. U.S. cigarette volumes fell about 5%, and Marlboro’s retail share slid to 39.5%.
Enterprise Products Partners For the October deadline, this one counts. Investors can expect the $0.56 per-unit distribution to go ex on October 30, 2026, and pay on November 13, 2026. The $2.24 annualized payout against a $35.96 unit price gives a forward yield of 6.23%. The units are down 7.56% over the past month, which has driven the entry yield higher.
Coverage is the strongest of the three. Second-quarter distributable cash flow of $2.3 billion covered the distribution 1.9x, and the partnership kept $1.1 billion for growth projects and buybacks. Leverage is at its target of 3.0x net debt, and about 97% of its debt carries a fixed rate. The quarterly distribution has risen every year on record, from $0.45 in 2021 to $0.56 today.
Growth should keep the raises coming. Enterprise has $6.5 billion of organic projects under construction, and its LPG export capacity is about 90% contracted. Adjusted EBITDA reached a record $2.83 billion.
The catch is taxes. As a partnership, Enterprise issues a K-1 form instead of a 1099, which makes tax filing harder, especially in retirement accounts.
Verizon Verizon pays $2.83 a year for a 6.54% forward yield. Shares are off 13.03% over the past month after a sharp telecom selloff on Friday (MarketWatch). Because the October 9 ex-date has already passed, new buyers will start with the following quarter’s payment.
Free cash flow carries the dividend easily. Verizon expects $21.94 billion to $22.14 billion of free cash flow this year. The dividend costs about $11.76 billion a year across its shares. The CFO called the latest raise “the 20th consecutive year of dividend increases.” That raise took the quarterly payment to $0.7075 from $0.69.
The operating trends have turned. In the second quarter, Verizon added 184,000 postpaid phone customers. Its adjusted EBITDA margin expanded to 40.1%, and fiber connections grew 43.3% after the Frontier deal. The stock trades at a forward P/E of about 9.
The risk is debt. Unsecured debt totals $136.5 billion, and leverage rose to 2.5x after Frontier. Management is aiming for 2.0 to 2.25x in 2027.
Rising Checks From Three Essential Industries The three forward yields average 6.3%. Verizon is the only one above the 6.5% line, and Enterprise offers the last ex-date of the month. Each payout is covered by cash, has gone up this year, and comes from a business that people keep paying through downturns. (A mid-six-figure stake spread across names like these can produce more monthly income than most investors expect, which is the point of our free income guide here.) Next up: Altria’s volume trends, Enterprise’s project startups, and Verizon’s debt paydown.
Contact [email protected] for any questions or corrections.
Enterprise Products Partners carries one of the biggest yields in large-cap energy, but the dividend yield alone tells you almost nothing about whether that payout is safe. The number that actually matters is one most investors never check first.
Enterprise Products Partners (NYSE:EPD | EPD Price Prediction) pays one of the larger yields among large-cap energy names, so income investors usually start with the size of the check. A better first question is how much cash the business brings in for every dollar it pays out. That figure is the distribution coverage ratio, and Enterprise’s is unusually high.
Distribution Coverage Ratio: How Many Times the Payout Is Covered
Coverage compares distributable cash flow (DCF), which is the cash left after running the business and maintaining the assets, with the cash Enterprise sends to unitholders. A 1.0x ratio means every dollar earned goes out the door. Anything above that is a buffer. Revenue and earnings don’t show this. Enterprise’s revenue rose 60.8% year over year in Q2 2026, but much of that reflects commodity prices passing through its books. Coverage shows whether the payout is funded by the business itself or by borrowing and asset sales.
A 1.9x Cushion Sits Under Every Payment.
In Q2 2026, operational DCF reached a record $2.3B, up 21% from a year earlier. In management’s words, that “provided 1.9 times coverage of the partnership’s cash distribution.” Of that cash, $1.2B went to unitholders, and $1.1B stayed in-house to fund growth projects and buybacks.
The cash comes from volume fees. Pipeline volumes hit a record 14.7 MMBPD, up 8%, and marine terminal volumes rose 33% to a record 2.8 MMBPD. Fees tied to barrels moved hold up better through commodity price swings than profits that depend on the price of those barrels.
That buffer has funded steady increases. The quarterly distribution is now $0.56 per unit, up from $0.545 a year ago, and 2025 marked the 27th consecutive year of distribution growth. The $2.24 annualized payout works out to a yield of about 6.1% at the recent price of $36.76. Units bought before the October 30, 2026 ex-distribution date qualify for the November 13, 2026 payment.
K-1 Paperwork Comes With the Units
Enterprise is a partnership, so unitholders get a Schedule K-1 at tax time instead of a 1099. The K-1 reports “your share of income, deductions, credits, and tax preference items of the partnership,” and partners must report that share “whether or not they are actually distributed to you.” In practice, that means extra filing work, K-1s that are sometimes due late, and a tax picture that is more complicated than a typical dividend stock’s. A tax professional can help, especially if you hold units in a retirement account.
What Would Shrink the Cushion
The main risk is leverage combined with heavy spending. Total debt principal was about $34.2B as of Q1 2026, and the partnership has a $6.5B backlog of growth projects. If new LPG export capacity or the planned Permian gas plants start up late or bring in less volume than expected, DCF could grow more slowly while interest costs keep running. Also note that Q1’s $2.7B DCF included a roughly $600M one-time payment from the Bahia pipeline sale, which won’t repeat.
A bullish sign would be coverage holding above 1.7x as the new projects come online. Coverage moving toward 1.2x to 1.3x would suggest distribution growth may slow. Management has called 2026 a free cash flow turning point, with growth capex stepping down to $2.9B to $3.4B. That should leave more of the retained cash for buybacks under the $5.0B authorization.
Verdict
The 6% yield draws investors in, but the 1.9x coverage ratio shows Enterprise funds its payout from fee income, with nearly a dollar to spare for every dollar it pays out. For income investors sizing up what a mid six-figure balance can actually throw off each month, we outlined the full plan in a free income guide here.
Contact [email protected] for any questions or corrections.
Amid all the artificial intelligence (AI) brouhaha, it's difficult to find stocks that benefit from the data center build-out that aren't overpriced yet deliver a high-yielding dividend.
Energy Transfer (ET -0.20%) and Enterprise Products Partners (EPD -0.23%) are the exceptions. The two midstream energy master limited partnerships (MLPs) are key components of U.S. energy infrastructure. Their pipelines help transport, process, and export natural gas, natural gas liquids (NGLs), and crude oil.
If you're concerned about an AI bubble, these two midstream pipeline companies are in a great position to ride one out without denting your portfolio.
Image source: Getty Images.
They have safe, juicy dividends
At a time when the S&P 500 (^GSPC -1.41%) average dividend is only 1.06%, Energy Transfer has a dividend that yields 6.69% at its current price, while Enterprise Products has a yield of 5.99%, superior to its closest energy competitors.
$20.09-$0.04 (-0.20%)
TXSE · As of 2:49 PM ET 10/22/26
Their adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) stem from fee-based, long-term contracts. This insulates their cash flow from short-term fluctuations in commodity prices, ensuring consistent revenue regardless of volatility in the crude oil or natural gas markets.
Enterprise Products Partners has increased its dividend for 28 consecutive years, including a 2.7% increase this year.
Energy Transfer doesn't have as long a history of consecutive yearly dividend raises, just four years, but it has been particularly aggressive in raising its dividend of late, including 19 consecutive quarterly raises.
Both companies maintain healthy distribution coverage ratios. Enterprise Products Partners' was 1.9x in the second quarter, while Energy Transfer's was 2.2x, leaving ample excess cash after distributions to fund expansion and preserve balance sheet integrity.
They benefit from multiple tailwinds
Increasing electricity requirements from AI-driven data centers, manufacturing reshoring, and grid electrification are creating structural tailwinds for natural gas. Both companies hold dominant pipeline footprints connecting major supply basins directly to gas-fired power generation markets. Yet when you compare them to competitors, they are trading at lower multiples, below 14 times trailing earnings, making them even more attractive.
In addition to their pipelines, each company has liquefied natural gas (LNG) and NGL export facilities along the Gulf of Mexico.
Enterprise Products Partners' operations stretch from the Gulf to Canada, transporting and storing natural gas, LNG, NGL, and crude oil, with more than 50,000 miles of pipelines; more than 300 million barrels of storage capacity for NGL, crude oil, petrochemicals, and refined products; and 14 billion cubic feet of natural gas storage capacity.
Energy Transfer owns more than 140,000 miles of pipelines and energy infrastructure across 44 states.
They are showing strong earnings
In the second quarter, Energy Transfer reported net income of $2.09 billion, up 80.1% year over year, and adjusted EBITDA of $5.07 billion, a rise of 31% over the same period a year ago. Distributable cash flow rose 32% year over year to $2.59 billion. The company also increased its yearly adjusted EBITDA guidance to between $18.8 billion and $19.1 billion, up from the previous range of $18.2 billion to $18.6 billion.
Enterprise Product Partners reported record net income, distributable cash flow, and adjusted EBITDA in the second quarter. Net income was $1.8 billion, up 28% year over year. DCF was $2.3 billion, up 21% from the same quarter a year ago. Adjusted EBITDA was $2.8 billion, up 17% year over year.
Tobacco and pipeline giants rarely share the spotlight, but three companies spanning both sectors are quietly raising their payouts while most investors chase growth stocks that pay nothing at all.
Tobacco and midstream energy remain two of the most reliable cash sources an income investor can own, and these three names back their payouts with solid cash-flow coverage. Using each company’s annualized forward payout and the latest closing prices, Altria (NYSE:MO | MO Price Prediction), Enterprise Products Partners (NYSE:EPD) and British American Tobacco (NYSE:BTI) blend to an ultra-high forward yield of roughly 6.1%. Each of the three raised its payout within the past year.
Altria: A Fresh Raise Backed by Growing Earnings Altria’s trailing yield is 5.94%, but the latest raise to $1.11 per quarter lifts the forward yield to about 6.2% at a $71.66 share price.
Dividend safety: The new annual rate represents roughly 79% of the low end of full-year adjusted EPS guidance of $5.61 to $5.72, which management narrowed while raising the bottom end. This is high but standard for a mature tobacco business. The quarterly payout has risen every year from $0.80 in 2019 to the current level. Altria returned roughly $3.9 billion to shareholders in the first half via dividends and repurchases. Years of buybacks have left equity negative at $2.618 billion, and the company holds $2.367 billion in cash.
Bull case: Shares trade at about 12 times forward earnings with a beta of 0.461, so this income stream comes with low volatility. Shares are up 30.31% year to date.
Risk: Marlboro’s retail share fell 1.5 points to 39.5% while domestic cigarette volume declined 5%.
Enterprise Products Partners: 1.9x Coverage Leads the Group Enterprise’s trailing yield is 6.0%. Its $2.24 annualized forward distribution works out to a yield of about 6.2% at a share price of $35.91. The $0.56 distribution has an ex-date of October 30.
Dividend safety: Operational distributable cash flow reached $2.3 billion last quarter, covering the distribution 1.9x. Over the trailing 12 months, distributions plus buybacks used just 56% of adjusted operating cash flow. Leverage is at the partnership’s 3.0 net target, about 97% of debt is fixed-rate, and liquidity is around $5 billion. Enterprise has paid quarterly distributions without interruption since 1999, and the payout has grown from $0.225 back then.
Bull case: Adjusted EBITDA hit a record $2.83 billion, up 17%, and $6.5 billion of organic projects are under construction. Those projects lay the foundation for future raises. CNBC’s Jim Cramer recently called it “a really well-run company.”
Risk: Management warned that new export capacity arriving over the next 12 to 18 months could bring “just overall lower rates” on terminal fees.
British American Tobacco: Biggest Raise at the Lowest Multiple British American Tobacco’s ADR has a trailing yield of 6.02%. Its annualized forward payout of $3.339404 comes to about 6.0% at $55.62.
Dividend safety: The quarterly ADR payment rose to $0.834851 from $0.749068 a year earlier and $0.743059 before that. The trailing dividend uses about 63% of earnings, the most comfortable payout ratio in this group. Operating cash flow of $6.342 billion far exceeded capex of $551 million. Management targets leverage of 2.0x to 2.5x adjusted net debt to EBITDA by year-end and has committed to a £1.3 billion buyback.
Bull case: At about 11 times forward earnings, British American Tobacco is the cheapest of the three. Modern Oral segment revenue rose 47.4% to $1.165 billion, and guidance calls for 5% to 8% adjusted diluted EPS growth.
Risk: Because the dividend is declared in British pence, currency fluctuations affect what U.S. holders actually receive. Management expects an approximately 3% translational foreign-exchange drag this year.
Three Covered Payouts Near a 6% Floor Enterprise has the best payout coverage, British American Tobacco has the lowest payout ratio and valuation, and Altria has the steadiest record of annual raises. Together, they produce a forward yield of approximately 6.1%, and every payout is backed by real cash flow. Enterprise’s next ex-date falls in late October.
Contact [email protected] for any questions or corrections.
Enterprise Products Partners (EPD - Free Report) closed at $36.59 in the latest trading session, marking a -1.05% move from the prior day. This change lagged the S&P 500's 0.58% gain on the day. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 1.05%.
The provider of midstream energy services's stock has dropped by 2.71% in the past month, falling short of the Oils-Energy sector's gain of 6.29% and the S&P 500's gain of 0.97%.
Investors will be eagerly watching for the performance of Enterprise Products Partners in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 29, 2026. It is anticipated that the company will report an EPS of $0.78, marking a 27.87% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $15.35 billion, reflecting a 27.67% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $3.1 per share and a revenue of $63.51 billion, demonstrating changes of +16.54% and +20.75%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Enterprise Products Partners. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.43% higher. At present, Enterprise Products Partners boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Enterprise Products Partners is presently being traded at a Forward P/E ratio of 11.93. This expresses a discount compared to the average Forward P/E of 14.71 of its industry.
Also, we should mention that EPD has a PEG ratio of 1.32. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Oil and Gas - Production Pipeline - MLB industry held an average PEG ratio of 1.85.
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 27, placing it within the top 11% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Enterprise Products Partners (EPD -0.05%) is a master limited partnership (MLP) specializing in the ownership of oil and gas pipelines. Along with sporting a high forward dividend yield of 6.1%, Enterprise Products Partners has a long track record of dividend growth. The MLP has raised its dividend, technically known as a distribution, for 28 consecutive years.
This combination of high yield and a history of dividend growth makes it a strong choice for investors seeking steady, growing portfolio income. Better yet, based on its payout ratio and growth history, this high-yielder has a strong history of dependable, consistent payout increases.
Image source: Getty images.
How many EPD shares do you need to earn $2,000 per year in dividends?
Currently, Enterprise Products Partners pays unitholders $0.56 per unit quarterly, or around $2.24 per unit annually. Hence, to generate $2,000 per year in dividend income, investors need around 893 shares. With shares priced at $36.69, this position is worth $32,764.
$36.80-$0.02 (-0.05%)
NYSE · As of 4:00 PM ET 10/19/26
Enterprise Products Partners has raised its payout by around 4% annually over the past five years, 3.6% over the past 10 years, and 4.8% over the past 20 years. While past performance does not guarantee future results, this consistency of 3.5%-5% annual dividend growth over decades strongly signals similar growth in the years ahead.
Lower payout ratio signals payout stability
In terms of dividend sustainability, Enterprise Products Partners takes a slightly more conservative approach to paying out distributable cash flow (DCF) to unitholders. While competing pipeline stocks and master limited partnerships pay out 65% and sometimes more than 70% of DCF, based on its 1.7x coverage ratio, this MLP distributes less than 60% of its DCF in the form of cash payouts.
That's not all. Enterprise Products Partners has steadily grown its operational DCF over the last 20 years, even amid macro challenges such as the late 2000s financial crisis, the mid-2010s oil price collapse, and the COVID-19 pandemic of 2020. During this time, DCF has nearly quadrupled. All of these factors make this pipeline stock a standout.
Fill up a diesel truck right now and you'll feel it. The national average on-highway diesel price sat at $6.199 a gallon for the week of Oct. 5, according to the U.S. Energy Information Administration, down a touch from a 2026 peak of $6.529 in late September but still more than two and a half dollars above where it stood a year ago. The reason traces back to a supply shock most drivers never think about: A disruption to Strait of Hormuz shipping earlier this year choked off a chunk of the world's refined fuel exports, and global diesel supplies still haven't caught up.
That's bad news at the pump, but it's not bad news for everyone who touches a barrel of oil. Diesel is refined from crude, not pumped straight out of the ground, so the companies that profit here aren't always the ones hurt when gas prices rise. Here's how five energy stocks line up, from the one cashing in hardest to the ones along for the ride.
Image source: Getty Images.
Marathon Petroleum: the purest bet on the crack spread
Marathon Petroleum (MPC +0.24%) buys crude and turns it into diesel, gasoline, and jet fuel. That makes it the most direct play on what traders call the crack spread, the gap between what a refiner pays for crude and what it sells the finished fuel for. Marathon's refining margin doubled to $36.33 a barrel in the second quarter of 2026, up from $17.58 a barrel a year earlier, per Quartz. Its refining segment posted adjusted earnings before interest, taxes, depreciation, and amortization of $6.7 billion, up from $1.9 billion.
One caveat worth knowing: Marathon has been public since 2011 and has lived through a real down cycle before, including the brutal refining crash of 2020. But the company has changed shape since then, selling its Speedway gas stations to 7-Eleven in 2021 and spinning off its pipeline business as MPLX (MPLX +1.82%). Today's Marathon is a leaner, more refining-heavy business than the one that weathered those past downturns, so its old track record only tells you so much about how this version holds up once margins cool off. Still, no stock on this list cashes in on high diesel prices more directly than this one.
MPC Marathon Petroleum$478.07+$1.15 (+0.24%)
NYSE · As of 4:00 PM ET 10/16/26
Chevron and ExxonMobil: refining is the smaller half of a bigger machine
Chevron (CVX +2.58%) and ExxonMobil (XOM +2.46%) get hit by the same tailwind, just with more padding around it. Both are integrated majors, meaning they pull oil out of the ground and refine it too, so a spike in diesel margins shows up as a real but smaller slice of a much bigger business. Chevron's downstream earnings jumped to $4.9 billion in the second quarter of 2026 from $737 million a year earlier, on the back of stronger margins on gasoline and diesel. Exxon's Energy Products segment, its refining and fuels business, posted adjusted earnings of $4.1 billion for the quarter, nearly double from a year earlier, with the company highlighting record second-quarter diesel production. Both companies benefit from the same crack spread Marathon rides, but oil production, chemicals, and other segments cushion the swings, for better or worse, depending on which direction crude and refining margins move next.
CVX Chevron$224.99+$5.67 (+2.58%)
NYSE · As of 4:00 PM ET 10/16/26
Energy Transfer and Enterprise Products Partners: paid to move it, not to sell it
Energy Transfer (ET +1.91%) and Enterprise Products Partners (EPD +3.51%) own the pipelines, storage tanks, and terminals that move diesel and other fuels around the country. Neither company buys crude low and sells diesel high. They get paid a fee for moving volume through their systems, and both lean on long-term, take-or-pay contracts, meaning a customer pays whether or not barrels ship. Energy Transfer says roughly 90% of its business is fee-based; Enterprise puts a similar share of its profit in that same category. That structure means neither company gets a direct lift just because diesel crack spreads hit a record. What they do offer is a steady toll-collector role in a system running flat out to meet diesel demand, plus the high distribution yields both are known for among income investors, a separate reason to own these stocks that has nothing to do with today's diesel prices.
ET Energy Transfer$20.26+$0.38 (+1.91%)
TXSE · As of 4:00 PM ET 10/16/26
What this means for your money
None of this is permanent. The EIA itself expects diesel prices to stay elevated through October before easing as crude supply and refinery output catch up, and crack spreads this wide don't tend to last. Marathon has the most to lose if margins snap back, since refining is its entire business. Chevron and Exxon have more built-in cushion. Energy Transfer and Enterprise were never playing this game to begin with; their appeal is the steady toll income, not a diesel bet.
Two pipeline giants both raised their payouts this quarter, but one cut its dividend during the last industry bust while the other kept raising through it. For retirees living on portfolio income, that history changes everything about which stock belongs…
How does a retirement-focused investor compare Enterprise Products Partners (NYSE:EPD | EPD Price Prediction) or Williams Companies (NYSE:WMB) right now? Both pipeline giants posted strong second-quarter 2026 results, but they pay retirees very differently. Enterprise offers a forward yield of about 6.2%. Williams yields about 3.0% and is spending heavily on faster growth. Here is how they compare on the three measures that matter most for income.
Yield and Income: Enterprise Pays Far More Today Enterprise raised its quarterly distribution to $0.56 from $0.55, which works out to $2.24 a year. At a unit price of $36.08, that is a yield of about 6.2%. The distribution is well covered. Second-quarter operational distributable cash flow hit a record $2.3B, or 1.9x the distribution. Enterprise also bought back $405M of units over the trailing 12 months.
Williams pays $0.525 a quarter, up from $0.50, for $2.10 a year. At $69.94, that comes to about 3.0%. Its forecast 2026 coverage of 2.36x to 2.45x leaves a deeper cushion. Even so, a retiree who needs monthly cash gets far more income per dollar from Enterprise. Winner: Enterprise.
Growth Trajectory: Williams Is Building at Twice the Scale Williams expects $7.3B to $7.9B of growth capex in 2026, compared with $2.9B to $3.4B at Enterprise. It raised its 2026 adjusted EBITDA guidance to $8.3B to $8.5B and lifted its long-term compound annual EBITDA growth target through 2030 to “11 plus percent.” Its drivers include the $5.5B Momentum Midstream deal, 7.1 Bcf/d of pipeline projects already underway and power projects for data centers. Management also expects Gulf Coast LNG demand to rise by about 20 Bcf/d over the next decade.
Enterprise is aiming for about 10% area growth in EBITDA from 2025 to 2027. Its payout raises are also smaller: 2.8% a year, compared with Williams’ 5% increase for 2026. Williams pays for that growth with more debt. It expects year-end leverage around 3.9 times, compared with Enterprise’s 3.0 net target. Winner: Williams.
Track Record: Enterprise Kept Raising Through the 2016 Bust Enterprise is on its 27th consecutive year of distribution growth. Its quarterly payout rose from $0.39 in 2016 to $0.56, a gain of 43.6%. Williams cut its dividend from $0.64 to $0.20 in September 2016. It has since raised the payout by 162.5%, but today’s $0.525 is still below where it was before the cut. Williams’ 52nd consecutive year of payments counts only payments, since the 2016 cut broke its growth record.
Williams has delivered more price growth: its stock is up 303.76% over 10 years, compared with 175.28% for Enterprise. A payout that held up through the last industry downturn matters more to a retiree, though. Winner: Enterprise.
Tax Paperwork Can Decide This for You Enterprise is a master limited partnership, so unitholders get a Schedule K-1 instead of a 1099. Partnership income is reported on Schedule K-1 (Form 1065). Holding it in an IRA brings an extra wrinkle. The IRA must count its share of a partnership’s unrelated business income under 26 U.S.C. § 512(c)(1). An IRA with $1,000 or more of that income must file Form 990-T.
Williams is a regular corporation, so it reports dividends on a 1099-DIV. Qualified dividends can be taxed at 0%, 15%, or 20% rates.
Verdict: Enterprise Wins for Income Retirees Enterprise Products Partners offers more current income for retirees who live on portfolio income in a taxable brokerage account. It pays about twice Williams’ yield, covers the payout 1.9x, carries less debt and kept raising through 2016 while Williams cut. The K-1 adds a few forms at tax time, and the extra income more than pays for them (building a ladder of payers like this is the whole idea behind our free guide on living off dividends without ever selling a share).
Williams wins for one specific group: investors who hold their income stocks in an IRA and won’t need the cash for 10 years or more. For them, its faster EBITDA growth, bigger annual raises and simple 1099 reporting outweigh today’s lower yield. For anyone already drawing down a portfolio, Enterprise’s higher current income stands out.
Contact [email protected] for any questions or corrections.
Key Takeaways Best Buy posted 4.1% comparable-sales growth and 15% adjusted EPS growth, with a 4.37% dividend yield.BP's second-quarter underlying profit reached $5.732 billion, while its quarterly dividend rose to 8.66 cents.Enel Chile offers a 5.88% yield, while Enterprise Products Partners leads the group at 6.22%. In the second half of October, investors are contending with rising inflationary pressures and an uncertain interest-rate outlook. In this environment, dividend-paying stocks with credible cash-generation prospects can offer an income component while investors wait for business fundamentals to translate into share price performance.
Here we have picked four stocks, Best Buy (BBY - Free Report) , BP plc (BP - Free Report) , Enel Chile (ENIC - Free Report) and Enterprise Products Partners (EPD - Free Report) that offer investors a mix of income, potential dividend growth and exposure to different business drivers. Let’s delve deeper.
Growth & Income Stocks in Focus on Inflation, Rate UncertaintyThe latest inflation report supports the case for selectivity. The U.S. Bureau of Labor Statistics (BLS), in its Oct. 14 release, reported that the Consumer Price Index (CPI) rose 3.7% year over year in September, up from 3.4% in August. Monthly inflation accelerated to 0.6% from 0.4%, while core CPI increased 2.6% year over year. Gasoline prices rose 9.1% in September, accounting for more than half of the monthly increase in headline inflation. These figures complicate the outlook for household purchasing power and the Federal Reserve's efforts to restore price stability.
Monetary policy adds another layer of uncertainty. On Sept. 16, the Federal Reserve raisedits target federal funds rate by 25 basis points to 3.75%-4%, citing elevated inflation even as economic activity continued to expand at a solid pace. With inflation moving in the wrong direction, investors cannot simply assume that easier monetary policy will soon support dividend-stock valuations.
For the remainder of October, therefore, the more compelling income opportunities may be companies whose dividends are supported by operating cash flow, resilient business models or a credible record of distributions.
4 Compelling Dividend Growth Stocks to Buy TodayBest Buy: It is the largest specialty consumer electronics retailer in the United States, selling computers, appliances and other technology products, alongside installation and technical support services. The company generated $41.7 billion in fiscal 2026 revenues. In the last-reported second quarter of fiscal 2027, comparable sales increased 4.1% and adjusted EPS rose 15% to $1.47. Best Buy declared a quarterly dividend of $0.96 per share, payable on Oct. 8, 2026.
BBY, a Zacks Rank #2 (Buy), also has a Growth Score of A. With a market capitalization of approximately $18.45 billion, Best Buy offers a dividend yield of 4.37%, slightly below its five-year average of 4.66%. Its five-year historical dividend growth rate of 4.74% indicates a record of dividend increases.
BP: The company’s integrated operations span oil and gas production, refining and trading. In the second quarter of 2026, underlying replacement-cost profit reached $5.732 billion, compared with $2.353 billion a year earlier, while operating cash flow totaled $10.858 billion. BP announced a quarterly dividend of 8.66 cents per ordinary share, up from 8.32 cents in the year-earlier quarter.
BP has a Zacks Rank #1 (Strong Buy) and a Growth Score of B. With a market capitalization of approximately $127.13 billion, BP offers a dividend yield of 4.24%. Its five-year average is 4.95%. Its five-year historical dividend growth rate of 10.87% reflects growth in shareholder distributions over the period.
Enel Chile: It operates in electricity generation and distribution, providing exposure to power demand and local electricity-market conditions. For its second-quarter 2026, the company reported net income of $272 million through June, up 10.7% from the comparable 2025 period.
ENIC has a Zacks Rank #2 and a Growth Score of B. With a market capitalization of $6.13 billion, Enel Chile offers a dividend yield of 5.88%, significantly above its five-year average of 4.13%. Its five-year historical dividend growth rate of 87.98% makes it a compelling dividend growth stock.
Enterprise Products Partners: The company operates pipelines, storage facilities and processing plants, with contracted and fee-based activities supporting cash-flow visibility. In the second quarter of 2026, adjusted EBITDA increased 17% year over year while distributable cash flow reached $2.3 billion, covering distributions by 1.9 times. EPD declared a third-quarter 2026 cash distribution of $0.56 per unit, or $2.24 annualized, on Oct. 8. This represented a 2.8% increase over the year-earlier distribution.
EPD has a Zacks Rank #2 and a Growth Score of B. With a market capitalization of $77.83 billion, EPD offers a distribution yield of 6.22%, the highest among the four stocks, although below its five-year average of 7.10%. Its five-year historical distribution growth rate of 4.50% indicates a relatively moderate pace of growth compared with BP and Enel Chile.
You can see the complete list of today’s Zacks #1 Rank stocks here.
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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.82% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Enterprise Products Partners (EPD - Free Report) Enterprise Products Partners L.P. owns and operates a diversified midstream network across natural gas, natural gas liquids, crude oil, petrochemicals and refined products. The partnership provides gathering, treating, processing, transportation, fractionation, storage and terminaling services through an integrated asset base that links major United States supply basins to domestic demand centers and international markets.
EPD is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. EPD has a Growth Style Score of B, forecasting year-over-year earnings growth of 13.5% for the current fiscal year.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.04 to $3.02 per share. EPD also boasts an average earnings surprise of +1.5%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, EPD should be on investors' short list.
A fat yield means nothing if the cash behind it runs dry, and plenty of popular high-payers are already running on fumes. These four cleared a stricter test that most income stocks quietly fail.
A big yield only matters if the business can keep paying it. Plenty of high payers look generous because the share price fell or because the company pays out more cash than it brings in, the kind of warning signs we cataloged in a free report on dividend traps. The four names below meet a stricter standard. Each one funds its payout from cash flow with room left over, and each raised its payout within the past year. Enterprise Products Partners (NYSE:EPD | EPD Price Prediction) shows what that margin can look like: last quarter’s record distributable cash flow covered its distribution 1.9x.
Enterprise Products Partners: Record Cash Flow Behind a Rising Distribution Enterprise yields 6.11%, which puts it in ultra-high-yield territory. That yield comes from a rising payout. At $35.84, the units are up 16.95% this year. Because Enterprise is a master limited partnership, it pays distributions rather than dividends, and unitholders receive a K-1 at tax time.
Dividend safety: Operational distributable cash flow rose to an all-time high of $2.3 billion in the second quarter, up 21% from a year earlier. Enterprise paid $1.2 billion to unitholders and kept $1.1 billion for growth projects and buybacks. Over the 12 months ending June 30, distributions and unit repurchases together came to 56% of adjusted cash flow from operations. Total debt principal was about $33.5 billion. Roughly 97% of it carries fixed rates, at a weighted average cost of 4.7%, and leverage remains at the partnership’s 3.0 net target.
Track record: The quarterly distribution has risen from $0.45 in 2021 to $0.56 today, with increases every year in between. The latest rate is 2.8% higher than a year ago.
Bull case: Enterprise has $6.5 billion of organic growth projects under construction, including new Permian processing plants and a new fractionator. Its LPG export capacity is about 90% contracted. Management still expects discretionary free cash flow to approach the $1 billion area this year even with higher capital spending. The chief executive summed it up: “Combined with a strong balance sheet, substantial retained cash flow, and a disciplined capital program, we’re well positioned for growth.”
Risk: The record quarter included about $200 million of extra benefit from a surge in global demand during April and May, and management said those spreads have since largely returned to normal. That makes 1.9x coverage look like a high point for the partnership. The units have fallen 7.87% over the past month.
Realty Income: 676 Straight Monthly Dividends Backed by Rising AFFO Realty Income (NYSE:O) yields 5.97%, a high yield paid out every month. At $55.21, the stock is up 1.88% this year, so the yield reflects a growing payout.
Dividend safety: Second-quarter adjusted funds from operations (AFFO, the cash earnings measure REITs use) came to $1.09 per share. Dividends paid in the quarter were $0.8115 per share. Management raised full-year AFFO guidance to $4.44 to $4.45 per share, well above the $3.252 annualized dividend. The free cash flow yield is 7.43%, and Fitch rates the company ‘A’. Occupancy was 98.8%, and re-leased properties brought in 102.7% of their prior rent.
Track record: Realty Income’s most recent declaration was its 676th consecutive monthly dividend. It has also declared its 136th monthly dividend increase and reached its 115th consecutive quarterly increase. The current monthly payment is $0.2715.
Bull case: Realty Income raised its investment volume guidance to $10.0 billion at a 7.3% initial cash yield. Its private capital platform, which manages $3.5 billion for outside investors, adds a fee stream on top of rent. Management said the guidance raise reflects “approximately 4% growth rate at the midpoint.”
Risk: Leverage has been rose. Net debt to annualized pro forma adjusted EBITDAre increased to 5.4x from 5.2x, and interest coverage stands at 1.42. That leaves the company sensitive to borrowing costs as it funds new acquisitions.
Altria Group: A Yield That Held Up Through a 31% Rally Altria (NYSE:MO) yields 5.92% even though the stock has rose 31.64% this year to $72.39. The yield stayed high because the payout kept rising: the quarterly dividend just went up to $1.11 from $1.06.
Dividend safety: Trailing diluted EPS of $4.75 covers the $4.24 in dividends per share over the past year. Management narrowed full-year adjusted EPS guidance to $5.61 to $5.72 and raised the low end. In the first half, Altria returned nearly $3.9 billion through dividends and buybacks while cash grew to $2.37 billion, up 83.9% from a year earlier. Shareholders’ equity is negative at -$2.62 billion. That reflects years of share buybacks.
Track record: Altria’s dividend history goes back to 1999. The data shows a raise every year since at least 2019, when the quarterly payout reached $0.84.
Bull case: Pricing power keeps the cash coming. Smokeable segment revenue rose 2.0% to $4.66 billion, and on! PLUS nicotine pouches are sold in 120,000 stores. The stock trades at about 12 times forward earnings, based on a forward P/E of 12, and $665 million remains on the buyback authorization. The chief executive said Altria “returned nearly $3.9 billion to shareholders through dividends and share repurchases combined.”
Risk: Cigarette volumes are shrinking. Industry volume is falling about 5%, adjusted for trade inventory, and Marlboro’s retail share slipped 1.5 points to 39.5%. Price increases have to keep making up for those lost sales.
VICI Properties: An Ultra-High Yield Where AFFO Still Covers the Payout VICI Properties (NYSE:VICI) yields 7.82%, the highest in this group. A falling stock price accounts for some of that yield. Shares are down 14.34% this year to $22.87, close to the $22.43 52-week low. Cash flow still supports the dividend.
Dividend safety: Second-quarter AFFO came to $0.62 per share, against a $0.45 quarterly dividend. Full-year AFFO guidance was raised to $2.45 to $2.47 per share. GAAP EPS of $0.48 missed expectations because of a $271.1 million non-cash credit-loss charge. That is an accounting entry that does not reduce cash available for dividends. Net debt is about 4.9 times adjusted EBITDA, below the company’s 5 to 5.5 times target range. Liquidity is about $2.5 billion, and Fitch rates the company ‘A’.
Track record: since VICI’s first listed payment of $0.16 in 2018, the dividend has gone up every year. The latest increase took it to $0.46.
Bull case: Occupancy is 100%, and the weighted average lease term is 39.6 years. Rents step up through annual increases of about 2.0%, plus CPI-linked increases. VICI now has 16 tenants. The stock trades at about 8 times forward earnings (forward P/E of 8) and a price-to-book of 0.895. The company’s president described its growth discipline this way: “We aim to make VICI bigger only when it makes VICI better.”
Risk: Rent is concentrated in two tenants. Caesars accounts for 38% of rent and MGM for 32%, so the dividend depends heavily on how those two operators perform.
Four Payouts Backed by Cash Flow The widest coverage margin belongs to Enterprise, Realty Income has the longest streak, Altria kept its yield high through a fairly strong rally, and VICI offers the biggest yield with AFFO well above the dividend. All four raised their payouts within the past year, and each paid for those raises from cash flow. For investors living off the checks, that cash coverage is what separates a reliable yield from a risky one.
Contact [email protected] for any questions or corrections.
Enterprise Products Partners (EPD - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this provider of midstream energy services have returned -7.1%, compared to the Zacks S&P 500 composite's +2.1% change. During this period, the Zacks Oil and Gas - Production Pipeline - MLB industry, which Enterprise Products falls in, has gained 24.7%. The key question now is: What could be the stock's future direction?
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.
Revisions to Earnings EstimatesRather 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 $0.75 per share, indicating a change of +23% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.
The consensus earnings estimate of $3.02 for the current fiscal year indicates a year-over-year change of +13.5%. This estimate has changed -0.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $3.22 indicates a change of +6.6% from what Enterprise Products is expected to report a year ago. Over the past month, the estimate has changed -0.4%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Enterprise Products is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Enterprise Products, the consensus sales estimate for the current quarter of $15.35 billion indicates a year-over-year change of +27.7%. For the current and next fiscal years, $63.5 billion and $66.13 billion estimates indicate +20.7% and +4.1% changes, respectively.
Last Reported Results and Surprise HistoryEnterprise Products reported revenues of $18.27 billion in the last reported quarter, representing a year-over-year change of +60.8%. EPS of $0.84 for the same period compares with $0.66 a year ago.
Compared to the Zacks Consensus Estimate of $13.6 billion, the reported revenues represent a surprise of +34.33%. The EPS surprise was +12%.
Over the last four quarters, Enterprise Products surpassed consensus EPS estimates two times. The company topped consensus revenue estimates three 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.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it 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 #2 does suggest that it may outperform the broader market in the near term.
ST. LOUIS, Oct. 13, 2026 (GLOBE NEWSWIRE) -- Verde Resources Inc. (OTCQB: VRDR) (“Verde”), an emerging leader in sustainable infrastructure products and technologies, today announced that the Environmental Product Declaration (“EPD”) for its engineered biochar has successfully completed third-party verification and is now publicly available through the ASTM International EPD library.
The milestone completes an initiative announced in April 2026, when Verde engaged WAP Sustainability, a part of SLR, to conduct a comprehensive Life Cycle Assessment (“LCA”) and develop an EPD for the engineered biochar used in Verde’s carbon-sequestering road technologies.
EPDs provide standardized, independently verified information on a product’s environmental impacts, including Global Warming Potential (“GWP”), or what is commonly referred to as embodied carbon. For Verde, the EPD establishes a verified environmental profile for its engineered biochar and provides customers, infrastructure owners, contractors and other stakeholders with a standardized basis for evaluating its climate impact.
GWP is generally expressed in kilograms of carbon dioxide equivalent (“kg CO₂e”) and measures the impact on global warming across defined stages of a product’s life cycle. In the case of biochar, life-cycle accounting can also capture the contribution of stable biogenic carbon stored within the material, providing valuable data for assessing the overall GWP profile of downstream road and infrastructure products incorporating Verde’s engineered biochar.
The EPD directly supports Verde’s commercialization initiatives with Ergon Asphalt & Emulsions under the parties’ 10-year Master Commercialization and Collaboration Agreement (“MCCA”) announced in July 2026. The MCCA provides the commercial framework for Verde and Ergon to develop and bring to market road products incorporating Verde’s engineered biochar and other carbon-sequestering road technologies.
The completed LCA and EPD also strengthen Verde’s collaboration with Isometric, announced in April 2026, to advance the certification and commercialization of engineered biochar-based carbon removal through infrastructure. While the EPD provides independently verified product-level environmental and GWP data, the Isometric pathway focuses on quantifying and verifying eligible carbon removals. Together, these frameworks are intended to enhance the transparency, measurability, durability and integrity of carbon removal credits generated through road and infrastructure applications—creating a differentiated pathway for corporate buyers seeking high-quality, durable carbon removals to support their sustainability and decarbonization goals.
The EPD further supports Verde’s global licensing strategy, beginning with its strategic collaboration with Highway International Private Limited (“Highway”), one of Singapore’s leading asphalt producers and road infrastructure contractors, as announced in August 2026. Beyond its established role in Singapore’s road infrastructure, Highway brings specialized expertise in high-performance asphalt applications, having pioneered the development of a specialized asphalt-wearing course for Singapore’s Formula 1 street circuit during its inaugural event in 2008. Engineered to withstand the exceptional demands of high-speed motorsport while functioning as a public roadway, the specialized surface reflects Highway’s technical capabilities, with the company continuing to service the circuit as recently as the October 2026 Singapore Grand Prix. Building on this expertise, Verde and Highway are preparing a pilot program to validate Verde’s engineered biochar-based carbon-sequestering solutions for roads and airfield pavements, while exploring adaptations for high-performance applications, including motorsport-grade asphalt surfaces. The collaboration aims to establish a technically validated, economically viable, and scalable licensing model for deployment in Singapore and potentially other international markets.
“The LCA and EPD for our engineered biochar gives our commercial collaborators and potential customers independently verified environmental and GWP data while strengthening the commercial platform we are building with Ergon, Isometric and Highway in Singapore,” said Karl Strahl, Director of Biochar and a member of Verde's Board of Directors. “It is another important step toward deploying Verde’s carbon-sequestering infrastructure technologies globally.”
“We are pleased to have supported Verde on their biochar in construction EPD project,” said William Paddock, CEO of WAP Sustainability. “This milestone demonstrates how rigorous life-cycle data can bring greater transparency to emerging carbon-sequestering materials, and we look forward to supporting Verde as it works to deploy these solutions globally.”
Verde’s Net Zero Blueprint platform brings together engineered biochar, advanced road-material technologies, LCA and EPD data, carbon accounting, digital measurement, reporting and verification (“MRV”), and third-party carbon-removal certification. The platform is designed to transform both existing and new infrastructure into durable carbon sinks, while generating measurable and verifiable environmental value through monetizable carbon removal credits.
At its core, the Net Zero Blueprint reflects Verde’s overarching vision: integrating carbon removal into the fabric of global infrastructure.
About Verde Resources Inc.
Verde Resources Inc. (OTCQB: VRDR) is an emerging leader in environmentally sustainable infrastructure products and technologies, specializing in innovative and cost-effective solutions designed to help the industry seamlessly #TransitionToZero®.
Through its engineered biochar, sustainable road-material technologies and Net Zero Blueprint, Verde is developing solutions designed to reduce greenhouse gas emissions, sequester carbon dioxide, expand the use of recycled and locally available materials, and transform conventional infrastructure into a platform for measurable carbon storage.
For more information, please visit www.verderesources.com.
This press release and statements of Verde’s management and Verde’s collaborators made in connection with the matters addressed by this press release contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Verde’s expectations, projections, and potential future developments. Statements attributed to Verde reflects its views as of the date hereof and are not intended as guarantees of future performance. All forward-looking statements are subject to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements involve significant known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially and adversely from those expressed or implied. In some cases, forward-looking statements can be identified by words such as “may,” “will,” “expect,” “plan,” “believe,” “estimate,” “anticipate,” “project,” “seek,” “propose,” “intend,” “aim,” “goal,” “potential,” “explore” or derivations of such words or similar expressions regarding the future, although forward-looking statements may be denoted by other terms. In this press release, forward-looking statements include those related to (i) the anticipated benefits to Verde’s business of Environmental Product Declaration regarding Verde’s biochar as described herein, and (ii) Verde’s commercial and other plans generally. These and other statements are based on current expectations and speak only as of the date of this release.
A non-exclusive list of risks and uncertainties that could cause the forward-looking statements herein to differ from future results includes, without limitation: (i) the risk that the Environmental Product Declaration not lead to a definitive licensing or other agreements for Verde or any revenue generating operations, (ii) the risk that Verde and its commercial partners will not be able validate the Net Zero Blueprint or gain market acceptance of their products and solutions, (iii) risks that biochar-modified paving materials may not achieve required regulatory or department of transportation approvals, and (iv) risks that field performance of engineered biochar products may differ from laboratory or test results. Other important factors that could cause actual results to differ materially from those in the forward-looking statements include those contained in the Verde’s filings with the SEC, which can be accessed here.
Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements contained herein. Except as required by applicable law, Verde does not plan to publicly update or revise any forward-looking statements contained herein, whether because of any new information, future events, changed circumstances, or otherwise.
SandRidge Energy (NYSE:SD – Get Free Report) and Enterprise Products Partners (NYSE:EPD – Get Free Report) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.
Profitability
This table compares SandRidge Energy and Enterprise Products Partners’ net margins, return on equity and return on assets.
Net Margins
Return on Equity
Return on Assets
SandRidge Energy
46.06%
13.62%
10.93%
Enterprise Products Partners
10.79%
20.67%
7.93%
Earnings & Valuation
This table compares SandRidge Energy and Enterprise Products Partners”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue
Price/Sales Ratio
Net Income
Earnings Per Share
Price/Earnings Ratio
SandRidge Energy
$156.36 million
3.32
$70.20 million
$2.24
6.26
Enterprise Products Partners has higher revenue and earnings than SandRidge Energy. SandRidge Energy is trading at a lower price-to-earnings ratio than Enterprise Products Partners, indicating that it is currently the more affordable of the two stocks.
Dividends
SandRidge Energy pays an annual dividend of $0.52 per share and has a dividend yield of 3.7%. Enterprise Products Partners pays an annual dividend of $2.24 per share and has a dividend yield of 6.2%. SandRidge Energy pays out 23.2% of its earnings in the form of a dividend. Enterprise Products Partners pays out 77.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SandRidge Energy has raised its dividend for 2 consecutive years and Enterprise Products Partners has raised its dividend for 28 consecutive years. Enterprise Products Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
SandRidge Energy has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Enterprise Products Partners has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations for SandRidge Energy and Enterprise Products Partners, as provided by MarketBeat.com.
Enterprise Products Partners has a consensus target price of $40.12, suggesting a potential upside of 11.69%. Given Enterprise Products Partners’ stronger consensus rating and higher possible upside, analysts clearly believe Enterprise Products Partners is more favorable than SandRidge Energy.
Insider and Institutional Ownership
61.8% of SandRidge Energy shares are owned by institutional investors. Comparatively, 26.1% of Enterprise Products Partners shares are owned by institutional investors. 1.6% of SandRidge Energy shares are owned by company insiders. Comparatively, 32.6% of Enterprise Products Partners shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Enterprise Products Partners beats SandRidge Energy on 11 of the 17 factors compared between the two stocks.
(Get Free Report)
SandRidge Energy, Inc. engages in the acquisition, development, and production of oil, natural gas, and natural gas liquids in the United States Mid-Continent. The company was incorporated in 2006 and is headquartered in Oklahoma City, Oklahoma.
About Enterprise Products Partners
(Get Free Report)
Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. It operates in four segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services. The NGL Pipelines & Services segment offers natural gas processing and related NGL marketing services. It operates natural gas processing facilities located in Colorado, Louisiana, Mississippi, New Mexico, Texas, and Wyoming; NGL pipelines; NGL fractionation facilities; NGL and related product storage facilities; and NGL marine terminals. The Crude Oil Pipelines & Services segment operates crude oil pipelines; and crude oil storage and marine terminals, which include a fleet of approximately 250 tractor-trailer tank trucks that are used to transport crude oil. It also engages in crude oil marketing activities. The Natural Gas Pipelines & Services segment operates natural gas pipeline systems to gather, treat, and transport natural gas. It leases underground salt dome natural gas storage facilities in Napoleonville, Louisiana; owns an underground salt dome storage cavern in Wharton County, Texas; and markets natural gas. The Petrochemical & Refined Products Services segment operates propylene fractionation facilities, including propylene fractionation units and propane dehydrogenation facilities, and related marketing activities; butane isomerization complex and related deisobutanizer operations; and octane enhancement, isobutane dehydrogenation, and high purity isobutylene production facilities. It also operates refined products pipelines and terminals; and ethylene export terminals; and provides refined products marketing and marine transportation services. Enterprise Products Partners L.P. was founded in 1968 and is headquartered in Houston, Texas.
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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.86% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Enterprise Products Partners (EPD - Free Report) Enterprise Products Partners L.P. owns and operates a diversified midstream network across natural gas, natural gas liquids, crude oil, petrochemicals and refined products. The partnership provides gathering, treating, processing, transportation, fractionation, storage and terminaling services through an integrated asset base that links major United States supply basins to domestic demand centers and international markets.
EPD is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 11.94; value investors should take notice.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.06 to $3.02 per share. EPD boasts an average earnings surprise of +1.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, EPD should be on investors' short list.
Billions of dollars in key capital growth projects await oil and natural gas pipeline players, which could generate incremental cash flows. Rising clean energy demand from data centers is also brightening the prospects for natural gas transportation companies, enhancing the outlook for the Zacks Oil and Gas - Pipeline MLP industry.
The companies belonging to the industry are also benefiting from stable fee-based revenues, as most contracts are for the long term. Key players in this industry include Enterprise Products Partners LP (EPD - Free Report) , Energy Transfer LP (ET - Free Report) and Plains All American Pipeline LP (PAA - Free Report) .
About the Industry The Zacks Oil and Gas - Pipeline MLP industry comprises master limited partnerships (or MLPs) that primarily transport oil, natural gas, refined petroleum products and natural gas liquids (NGL) to consumers in North America. Apart from transporting the commodities, the partnerships have huge capacities to store oil, natural gas and petrochemical products. The partnerships thus provide midstream services to producers and consumers of the commodities. The firms generate stable fee-based revenues from all these transportation and storage assets. The services provided by the MLPs entail the gathering and processing of commodities. The integrated midstream energy players also generate cashflows from ownership interests in fractionators and condensate distillation facilities.
What's Shaping the Future of Oil & Gas - Production & Pipelines Industry? Stable Cash Flow Generation: The midstream assets are usually booked by shippers for the long term, generating stable cash flows. The long-term contracts are mostly take-or-pay contracts, meaning shippers have to pay a minimum amount even if they don’t utilize the midstream assets. Thus, cash flow generation is highly predictable, suggesting that the business model is not very vulnerable to volatility in oil and natural gas prices.
Rising Demand From Data Centers: The natural gas transportation companies in the industry are well-positioned to gain from the growing clean energy demand from data centers. This is because, employing their pipeline networks, the midstream companies can transport natural gas to gas-fired power plants, which will provide electricity to the data centers.
Growth Capital Pipeline: Companies and partnerships in the industry are expected to generate incremental cash flow from billions of dollars in key capital projects that are either in service or set to come online.
Zacks Industry Rank Indicates Strong Prospects The Zacks Oil and Gas - Pipeline MLP industry is a seven-stock group within the broader Zacks Oil - Energy sector. The industry currently carries a Zacks Industry Rank #26, which places it in the top 11% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates solid near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s position in the top 50% of the Zacks-ranked industries forms a favorable earnings outlook for the constituent stocks in aggregate. Before we present a few stocks that you may want to consider, let’s look at the industry’s recent stock market performance and its valuation picture.
Industry Outperforms Sector, S&P 500 The Zacks Oil and Gas - Pipeline MLP industry has outperformed the broader Zacks Oil - Energy sector and the Zacks S&P 500 Composite over the past year. The industry has jumped 62.8% in the past year against the broader sector’s 39.5% gain and the S&P 500's 18.6% rise.
One-Year Price Performance
Industry's Current Valuation Since midstream-focused oil and gas partnerships use fixed-rate debt for the majority of their borrowings, it makes sense to value them based on the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) ratio. This is because the valuation metric takes into account not just equity but also the level of debt.
On the basis of the trailing 12-month enterprise value-to-EBITDA (EV/EBITDA), the industry is currently trading at 13.04X, lower than the S&P 500’s 18.22X. It is, however, significantly above the sector’s trailing 12-month EV/EBITDA of 6.20X.
Over the past five years, the industry has traded as high as 13.15X and as low as 8.31X, with a median of 10.82X.
Trailing 12-Month Enterprise Value-to EBITDA (EV/EBITDA) Ratio
3 Oil & Gas Pipeline MLPs to Gain Enterprise Products Partners is a leading midstream player and therefore has a resilient business model. EPD has a pipeline network that spans more than 50,000 miles, transporting oil, natural gas, refined products and other commodities. Thus, the partnership generates stable fee-based revenues from the midstream assets as the assets are booked by shippers for the long term.
Due to the resilience of its business model, the partnership, currently carrying a Zacks Rank #2 (Buy), has been able to return capital to unitholders on an ongoing basis. Since its IPO, Enterprise Products has returned billions of dollars to unitholders through both repurchases and distributions. Thus, the partnership has successfully kept cash flow steady through all business cycles.
Price and Consensus: EPD
Energy Transfer has a stable business model with its huge pipeline network of natural gas, oil and refined petroleum products across 125,000 miles. The partnership has midstream assets in all the key basins in the United States, generating stable fee-based revenues.
Energy Transfer, carrying a Zacks Rank #3 (Hold), has offered a higher distribution yield than the composite stocks belonging to the industry over the past three consecutive years. For this year, the partnership is likely to see earnings growth of 43%.
Price and Consensus: ET
Plains All American Pipeline also enjoys stable fee-based revenues, banking on its oil and natural gas pipeline network and storage assets. For this year, the #3 Ranked stock has witnessed earnings growth of almost 12%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Six income holdings, no bonds, and a strict rule against selling shares sounds clean until you look at what each position actually pays out and why two of them might be handing you back your own money.
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Pulling in $8,950 a month adds up to $107,400 a year, and this portfolio aims to cover it all from distributions alone. It spreads the work across six income holdings, with no bonds and no selling shares. Based on early October 2026 prices and each holding’s current annualized payout, the blended yield comes to about 8.4%, meaning you’d need roughly $1,280,000 to make it work.
A Dividend Growth Anchor With the Lowest Yield Let’s kick things off with Schwab’s U.S. Dividend Equity ETF (NYSEARCA:SCHD), which tracks an index that picks U.S. companies with long dividend records and strong quality screens. Its biggest positions are QUALCOMM and Texas Instruments. It gets a 20% weight, or about $256,000. Forward and trailing 12-month yields are both near 3.2%, or about $8,192 a year.
SCHD takes a fifth of the capital and delivers only about 8% of the income. Its main contribution is dividend growth. The latest quarterly payout of $0.2665 is up from $0.2604 a year earlier.
Nasdaq-100 Option Income and Its Return of Capital Question Next up is the NEOS Nasdaq-100 High Income ETF (NASDAQ:QQQI), which owns Nasdaq-100 stocks and sells index call options against them for income. A call option gives the buyer the right to buy at a set price, and the fund collects a fee for selling it. At 20%, or about $256,000, its roughly 13.5% distribution rate produces about $34,600.
Return of capital means the fund hands back part of the investor’s own money instead of income it earned. For the fiscal year ending May 31, 2025, 95% to 99% of each payout was classified as return of capital. That figure is more than a year old. A distribution rate made up mostly of returned capital measures how much cash goes out the door, and the fund’s earned income is a separate figure.
S&P 500 Covered Calls With a Shrinking Payout Another strong consideration is the Global X S&P 500 Covered Call ETF (NYSEARCA:XYLD), which runs the same strategy on the S&P 500. It holds 15% of the portfolio, or about $192,000. The forward distribution rate is about 8.5%, compared with a trailing 12-month rate near 10.3%. That gap means recent monthly payouts are running lower. At the forward rate, it adds about $16,300. Selling calls also caps the upside: when stocks rally past the strike, the fund gives up those gains.
Together, QQQI and XYLD supply about 47% of the portfolio’s income, and it all comes from option premiums. Premium rises and falls with market volatility, so two funds running the same strategy add little diversification.
Casino Real Estate Under Decades-Long Leases VICI Properties (NYSE:VICI) owns casino and entertainment real estate under triple-net leases, where tenants pay taxes, insurance, and maintenance. At 15%, its yield of about 8.0% adds roughly $15,400. Earnings-based payout ratios overstate risk for real estate investment trusts (REITs) because depreciation drags down reported profit. Measured against 2026 guidance for adjusted funds from operations (AFFO), a cash-flow measure REITs use in place of earnings, the dividend uses about 75% of cash flow. Caesars Entertainment pays about 38% of rent and MGM Resorts about 32%. Leases run a weighted average of 39.6 years.
First-Lien Loans Backing a Double-Digit Yield Capital Southwest (NASDAQ:CSWC) is a business development company, or BDC, that lends to mid-sized private businesses. At 15%, its trailing yield is near 10.9%, producing about $20,900. About 99% of the portfolio is first-lien debt, meaning it gets paid first. Fiscal fourth-quarter earnings of $0.59 a share covered the $0.58 regular quarterly dividend. The $0.06 supplemental is the piece most likely to change.
Pipeline Cash Flow With a Tax Twist Enterprise Products Partners (NYSE:EPD | EPD Price Prediction) owns pipelines and export terminals. At a 15% weight, its yield of about 6.2% contributes roughly $11,900 in income. Cash flow covered the distribution 1.9 times over, so the payout has some breathing room.
Why the Partnership Structure Matters EPD is a master limited partnership. It mails a Schedule K-1 instead of a Form 1099, and K-1s often arrive late, which can hold up anyone who likes to file early. Most distributions count as a return of capital and reduce the holder’s cost basis. Once basis hits zero, further distributions are taxed as capital gains.
None of it is a qualified dividend. Inside an IRA, unrelated business income of $1,000 or more forces the account itself to file and pay tax. EPD generally fits better in a taxable account.
What Could Shrink the Monthly Check Without selling, the income falls only if payouts fall (we walked through a dividend ladder built to live off the checks without touching the shares in a free guide). Calm markets reduce option premium at QQQI and XYLD, and Capital Southwest can drop its supplemental. EPD and VICI have steadier cash flows, though either could cut. SCHD’s qualified dividends fit a taxable account. VICI, Capital Southwest, and XYLD pay mostly ordinary income, so they fit better in an IRA.
Each year, two numbers deserve a check: the share of QQQI and XYLD payouts classified as return of capital, and whether Capital Southwest’s earnings still cover its regular dividend.
Contact [email protected] for any questions or corrections.
Midstream companies have some of the best dividends among energy stocks. Their dependable toll-like revenue streams provide steady cash flow, allowing them to deliver predictable dividend increases.
Even among midstream companies, Energy Transfer (TXSE: ET) and Enterprise Products Partners (EPD -1.82%) stand out. They have two of the sector's best dividend yields and enticingly low valuations, making them more attractive to income-oriented investors.
Energy Transfer's dividend is 6.65% at its current share price, while Enterprise Products Partners is 5.98%. Their trailing price-to-earnings (P/E) ratios are around 13 times earnings, while their forward P/Es are around 12 times earnings, well below their peers' multiples.
Image source: Getty Images
Why Energy Transfer is a good buy now The Dallas master limited partnership operates more than 140,000 miles of pipelines across 44 states. It is expanding to meet the growing demand for natural gas liquids (NGL) for large data centers and power plants and is in the process of buying midstream services company Vaquero Midstream for $2.65 billion. The move is intended to improve Energy Transfer's integrated natural gas gathering and processing network.
Energy Transfer has one of the fastest-rising dividends in the energy sector, having increased its dividend for 19 consecutive quarters, including a 3% raise in the second quarter. One concern is that its cash dividend payout ratio is around 90.14%, which looks high. However, the company grew its distributable cash flow (DCF) by 32% year over year in the second quarter to $2.59 billion. That means its DCF distribution ratio is only around 43%.
The company reported second-quarter revenue of $34.3 billion, up 78.4%, year over year, and earnings per share (EPS) of $0.59, an increase of 84.4% over the same period a year ago.
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Why Enterprise Products Partners is a good buy right now The Houston-based midstream company operates liquid storage facilities, marine export terminals, and more than 50,000 miles of pipelines to transport energy products. It reported record numbers in the second quarter, thanks mainly to record volumes going through its pipelines.
In the second quarter, it reported record revenue of $18.3 billion, up 60.7% year over year. EPS was $0.84, up 27.3% over the same period a year ago. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 17%, year over year, to a record $2.8 billion.
The company has increased its quarterly dividend for 28 consecutive years, including a 2.8% bump this year to $2.24 per share. It also had a record DCF of $2.3 billion in the quarter, up 21% year over year, and provided 1.9x coverage of the dividend.
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Business is booming, but... Midstream stocks are having a moment right now because of record-high volumes, with the growth of data centers leading the way. That has meant strong growth for Energy Transfer and Enterprise Products Partners. Based on their recent success, both stocks remain underpriced relative to competitors' valuations.
However, if you need to choose between the two, Energy Transfer's growth has come at a greater price, and its trailing debt-to-equity ratio of 4.1 makes it a riskier pick than Enterprise Products Partners -- and that was before Energy Transfer's proposed purchase of Vaquero.
SummaryThis article is part of our monthly series where we highlight five large-cap, relatively safe, dividend-paying companies offering significant discounts to their historical norms.We go over our filtering process to select just five conservative DGI stocks from more than 7,500 companies that are traded on U.S. exchanges, including OTC networks.In addition to the primary list that yields 4.6%, we present two other groups of five DGI stocks, each with moderate to high yields of up to 8%.Looking for a portfolio of ideas like this one? Members of High Income DIY Portfolios get exclusive access to our subscriber-only portfolios. Learn More » Olivier Le Moal/iStock via Getty Images
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Author's Note: This is our monthly series on Dividend Stocks, usually published in the first week of every month. We scan the universe of roughly 7,500 stocks listed and traded on U.S. exchanges and use our
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of ABT, ABBV, CI, JNJ, PFE, NVS, NVO, AZN, UNH, CL, CLX, UL, NSRGY, PG, TSN, ADM, BTI, MO, PM, KO, PEP, EXC, D, DEA, DEO, ENB, MCD, BAC, PRU, UPS, WMT, WBA, CVS, LOW, AAPL, IBM, CSCO, MSFT, INTC, T, VZ, CVX, XOM, VLO, ABB, ITW, MMM, LMT, LYB, RIO, O, NNN, WPC, TLT 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.
Disclaimer: The information presented in this article is for informational purposes only and in no way should be construed as financial advice or a recommendation to buy or sell any stock. The author is not a financial advisor. Please always do further research and do your own due diligence before making any investments. Every effort has been made to present the data/information accurately; however, the author does not claim 100% accuracy. The stock portfolios presented here are model portfolios for demonstration purposes. For the complete list of our LONG positions, please see our profile on Seeking Alpha.
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Western Midstream Partners (WES +0.59%) has an 8.1% yield as of this writing. That's the highest yield among this list of six income investments: Western Midstream, Energy Transfer (ET +0.68%), Enterprise Products Partners (EPD -0.43%), MPLX LP (MPLX +0.47%), Enbridge (ENB +1.42%), and ExxonMobil (XOM +2.71%). Exxon has the lowest yield at "just" 2.5%, which is still vastly higher than the S&P 500 index's (^GSPC -0.47%) 1%.
Here's a quick look at this list and how much income a $1,000 investment in each business would generate in a year.
Most of these businesses are focused on the midstream Midstream businesses own energy infrastructure assets such as pipelines, storage, and transportation facilities. They largely charge fees for the use of their assets, so the volume flowing through their systems is more important than the price of what is being moved. In other words, oil and natural gas prices aren't the biggest determinant of success; demand for energy is. Demand tends to be strong even when oil prices are low and during economic downturns because the fuel is so important to the normal functioning of the world. Midstream businesses are fairly reliable income generators and often pass a significant portion of their earnings to unitholders or shareholders as distributions or dividends.
Image source: Getty Images.
That's the basic reason why income investors will be interested in the midstream. Western Midstream, Energy Transfer, Enterprise Products Partners, and MPLX LP are all high-yield midstream limited partnerships (MLPs). Enbridge is a high-yield Canadian company that primarily operates in the midstream segment, though it also owns regulated natural gas utilities and clean energy assets.
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A $1,000 investment in Western Midstream, as of this writing, would generate $81 in a year based on its 8.1% yield, as of this writing. MPLX LP's yield is 7.5%, so a $1k investment would generate $75 per year in income. Energy Transfer's yield is 6.5%, allowing investors to generate $65 per year in distributions. And Enterprise Products would generate $59 a year from a $1,000 investment, given its 5.9% yield. Enbridge's yield is 6.1%, so it would generate $61 in a year. You can multiply that dollar figure by the number of thousands you are investing, so a $10,000 investment in Western Midstream would generate $81 x 10, which is $810 per year in income.
There are a couple of important takeaways. First, higher yields generally suggest higher risk. For example, Energy Transfer cut its distribution in 2020 (it has since returned to growth), while Enterprise Products has increased its distribution annually for 28 consecutive years. If income consistency is important to you, you may want to focus on lower-yielding options.
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Second, master limited partnerships (MLPs) come with tax complications. For example, you'll need to deal with a K-1 at tax time, and MLPs don't play well with tax-advantaged retirement accounts. So far, all but Enbridge are MLPs.
Enbridge represents a different complication, because it is a Canadian company. You avoid the MLP issues, but you have to pay Canadian taxes on the dividends it pays. If your broker has completed the required paperwork (you'll have to ask), however, those taxes can be avoided by holding it in a tax-advantaged account, such as an IRA or a Roth IRA, thanks to a tax treaty between the U.S. and Canada.
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For reference, Enbridge has increased its dividend for more than three decades. So, despite having the lowest yield so far, it may be the best choice if you are investing within a tax-advantaged retirement account. Its regulated natural gas utility assets and clean energy investments add diversification, as well.
ExxonMobil: A totally different direction This brings the story to the final name on the list above: ExxonMobil. It is one of the world's largest energy companies, with a globally diversified portfolio spanning the entire energy value chain, from production and midstream to chemicals and refining. It is a solid choice if you are looking for energy exposure that includes commodity exposure.
This energy industry bellwether has a 2.5% yield, so a $1k investment would generate only about $25 per year in income. However, it has increased its dividend annually for 43 years, making it the most reliable income investment on this list. But you'd have to be willing to accept the commodity risk that comes along with a large energy production business. More conservative income investors will probably be better off focusing on Enterprise and Enbridge, which sit between the high and low ends of the yield spectrum.
HOUSTON--(BUSINESS WIRE)--Enterprise Products Partners L.P. (NYSE: EPD) (“Enterprise”) announced today that the board of directors of its general partner declared a quarterly cash distribution to be paid to Enterprise common unitholders with respect to the third quarter of 2026 of $0.56 per unit, or $2.24 per unit on an annualized basis.
This distribution represents a 2.8 percent increase over the distribution declared with respect to the third quarter of 2025. The quarterly distribution will be paid Friday, November 13, 2026, to common unitholders of record as of the close of business Friday, October 30, 2026.
Enterprise repurchased approximately $112 million of its common units during the third quarter of 2026, which brings the total year-to-date repurchases for 2026 to $387 million. Inclusive of these purchases, the partnership has utilized approximately 36 percent of its authorized $5.0 billion buyback program.
Enterprise will announce its earnings for the third quarter of 2026 on Thursday, October 29, 2026, before the New York Stock Exchange opens for trading. Following the announcement, the partnership will host a conference call at 9 a.m. CDT with analysts and investors to discuss earnings. The call will be webcast live on the internet and may be accessed through the “Investors” section of the partnership’s website at www.enterpriseproducts.com. A replay of the webcast will be available following the conference call and may be accessed approximately one hour after completion of the call.
Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. Services include: natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage and marine terminals; crude oil gathering, transportation, storage and marine terminals; petrochemical and refined products transportation, storage and marine terminals; and a marine transportation business that operates on key U.S. inland and intracoastal waterway systems. The partnership’s assets currently include more than 50,000 miles of pipelines; over 300 million barrels of storage capacity for NGLs, crude oil, petrochemicals and refined products; and 14 billion cubic feet of natural gas storage capacity.
Qualified Notice for Non-U.S. Unitholder Income Tax Withholding
This release is intended to serve as qualified notice under Treasury Regulation Section 1.1446-4(b)(4) and (d). Brokers and nominees should treat one hundred percent of Enterprise’s distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Enterprise’s distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate. For purposes of Treasury Regulation section 1.1446(f)-4(c)(2)(iii), brokers and nominees should treat one hundred percent of the distributions as being in excess of cumulative net income for purposes of determining the amount to withhold. Nominees, and not Enterprise Products Partners L.P., are treated as withholding agents responsible for any necessary withholding on amounts received by them on behalf of foreign investors.
This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission. All statements, other than statements of historical fact, included herein that address activities, events, developments or transactions that Enterprise and its general partner expect, believe or anticipate will or may occur in the future are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from expectations, including required approvals by regulatory agencies, the possibility that the anticipated benefits from such activities, events, developments or transactions cannot be fully realized, the possibility that costs or difficulties related thereto will be greater than expected, the impact of competition, and other risk factors included in Enterprise’s reports filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. Except as required by law, Enterprise does not intend to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
A fat yield can vanish overnight, but four dividend stocks on this list show you exactly where the cash comes from before you buy a single share. The difference between a payout that lasts and one that gets cut is…
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Every income investor has seen it happen: a double-digit yield draws buyers, then the dividend gets cut. The four names here were picked because the cash behind the payout is easy to see. The clearest example is Enterprise Products Partners (NYSE:EPD | EPD Price Prediction), which generated $2.3B of operational distributable cash flow in the second quarter, covering its distribution 1.9x. Fee-based pipelines, a diversified healthcare giant and a tobacco company with pricing power each pay well, and each can show the cash to keep paying.
Enterprise Products Partners: Nearly Double Coverage on a 6% Yield Yield: At $36.91, the $2.24 annualized forward distribution yields about 6.07%.
Dividend safety: Over the 12 months ending June 30, Enterprise paid out 56% of adjusted cash flow from operations. It also kept $1.1B after distributions in the second quarter alone, which funded growth projects and $159M of unit buybacks. Leverage is at its 3.0 net target. About 97% of its debt is fixed rate, with a weighted average life of roughly 17 years. The latest raise took the quarterly payout to $0.56 from $0.55, up 2.8% YoY. The distribution record runs continuous from 1999.
Bull case: Enterprise posted record adjusted EBITDA of $2.83B (+17% YoY) and record pipeline volumes of 14.7 MMBPD. It has $6.5B of organic projects under construction, including an LPG export terminal expansion due online by year-end 2026. Management says that export capacity is about 90% contracted. Units are up 20.45% year to date.
Risk: Management said about $200 million of the quarter came from unusually strong global demand that has since normalized, so the next few quarters may show less of that boost. The partnership also issues a K-1, which makes taxes more complicated, and its longtime co-CEO is retiring.
Enbridge: 31 Straight Raises Backed by a $41 Billion Backlog Yield: Enbridge (NYSE:ENB) pays a quarterly dividend of C$0.97. For U.S. holders, the annualized forward amount of $2.784 works out to about a 6.07% yield at $45.89.
Dividend safety: Management reaffirmed 2026 DCF guidance of C$5.70-6.10 per share. That means the dividend uses roughly 64% to 68% of guided cash flow. Second-quarter distributable cash flow was $2.95B, and adjusted EPS of $0.63 beat the $0.60 consensus. The company reports 31 consecutive years of dividend increases and says it expects to return 40 to 45 billion to shareholders over the next five years.
Bull case: Enbridge works like a utility that happens to own pipelines. Its $41 billion backlog covers liquids, gas transmission, gas utilities and renewables, and its pipes connect to about 75% of North America’s refining capacity. Management targets about 5% annual growth in EBITDA, DCF and EPS after 2026. The stock has gone nowhere, down 0.14% year to date and down 8.38% over the past month, which has pushed the yield higher.
Risk: Leverage is tight. Debt-to-EBITDA reached 5.1x, just above the 4.5 to 5 target range. Management blames currency moves for most of that, and the same currency moves change the U.S.-dollar value of each payment.
Johnson & Johnson: A Dividend King With the Most Coverage Yield: Johnson & Johnson (NYSE:JNJ) yields about 2.07% on its $5.36 forward dividend at $258.45. Its yield is the lowest on this list. It also has the most room to keep raising.
Dividend safety: In April the quarterly payout rose to $1.34 from $1.30, the company’s 64th consecutive year of increases, which makes it a Dividend King. The forward dividend is about 46% of the bottom of 2026 adjusted EPS guidance, which is $11.60-11.75. Full-year free cash flow is expected to reach approaching $21 billion. Net debt is about $28 billion, and the company holds a AAA credit rating.
Bull case: J&J has 28 products and platforms that each bring in more than $1 billion a year, and it is on track to top $100 billion in annual revenue for the first time. Growth comes from Darzalex at $4.21B (+18.9%) and Tremfya at $2.05B (+72.5%). Shares are up 26.89% year to date.
Risk: Biosimilar competition took Stelara sales down 55.2% to $740M, and litigation costs continue. The planned separation of DePuy Synthes in mid-2027 also has to go smoothly.
British American Tobacco: Ultra-High-Yield Paid From a Cash Machine Yield: British American Tobacco (NYSE:BTI) pays a quarterly ADR dividend of $0.834851, up from $0.749068 in 2025. At $53.90, the forward yield is about 6.20%. It is the one ultra-high-yield name here.
Dividend safety: BAT has converted at least 100% of operating profit into cash every year since 2020. It says it is on track to generate more than £50 billion in free cash flow by 2030. The forward dividend matches about 86% of trailing EPS of $3.90, which is high but supported by that cash conversion. Leverage was 2.55x at the end of 2025, and management targets 2.0-2.5x by year-end 2026. The company notes a 25-year track record of dividend growth in sterling, and its latest raise was 2.0%. The company is also buying back £1.3B of stock in 2026.
The bull thesis: the shift to smokeless products is working. BAT now has 34.1M smokeless consumers. Velo grew 48% globally, and Velo Plus is now the number-two U.S. modern oral brand. Meanwhile, U.S. cigarettes delivered price/mix gains of 12.3%. At a forward P/E of 11, the stock trades at a modest multiple relative to that growth.
Risk: Illegal disposable vapes keep taking share from Vuse, and nicotine regulation remains a constant concern. The company also faces potential Dutch tax assessments of £1.08B.
Cash Covers Every One of These Payouts Enterprise pays out only about half its cash flow, Enbridge spends about two-thirds of guided DCF, J&J pays less than half its earnings, and BAT turns almost all of its operating profit into cash. That coverage is why these yields are sustainable, unlike the double-digit yields that end in cuts (we documented the seven warning signs that a big yield is about to be slashed in a free dividend trap guide). Two pipelines with fee-based revenue, a AAA healthcare company and a tobacco company with pricing power give this income list protection on several fronts at once.
Contact [email protected] for any questions or corrections.
Chickasaw Capital Management LLC trimmed its position in Enterprise Products Partners L.P. (NYSE:EPD – Free Report) by 3.4% in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 4,564,870 shares of the oil and gas producer’s stock after selling 162,740 shares during the period. Enterprise Products Partners makes up about 5.8% of Chickasaw Capital Management LLC’s portfolio, making the stock its 8th largest holding. Chickasaw Capital Management LLC owned 0.21% of Enterprise Products Partners worth $162,555,000 at the end of the most recent reporting period.
Several other hedge funds also recently modified their holdings of EPD. Alps Advisors Inc. boosted its stake in Enterprise Products Partners by 0.6% during the fourth quarter. Alps Advisors Inc. now owns 42,639,131 shares of the oil and gas producer’s stock valued at $1,367,011,000 after buying an additional 260,305 shares in the last quarter. Auto Owners Insurance Co raised its position in Enterprise Products Partners by 3,106.0% in the fourth quarter. Auto Owners Insurance Co now owns 32,060,000 shares of the oil and gas producer’s stock worth $102,784,000 after acquiring an additional 31,060,000 shares in the last quarter. Energy Income Partners LLC acquired a new stake in Enterprise Products Partners in the 2nd quarter valued at about $508,461,000. Bank of America Corp DE acquired a new stake in Enterprise Products Partners in the 2nd quarter valued at about $416,553,000. Finally, BlackRock Inc. bought a new position in shares of Enterprise Products Partners during the 2nd quarter valued at about $255,325,000. 26.07% of the stock is currently owned by institutional investors and hedge funds.
Enterprise Products Partners Trading Down 0.9% Enterprise Products Partners stock opened at $36.93 on Thursday. Enterprise Products Partners L.P. has a 52 week low of $30.01 and a 52 week high of $40.17. The company has a debt-to-equity ratio of 1.00, a quick ratio of 0.66 and a current ratio of 0.93. The firm has a market capitalization of $79.75 billion, a price-to-earnings ratio of 12.82, a P/E/G ratio of 1.37 and a beta of 0.50. The company has a 50 day moving average price of $38.12 and a 200 day moving average price of $37.94.
Enterprise Products Partners (NYSE:EPD – Get Free Report) last announced its earnings results on Wednesday, July 29th. The oil and gas producer reported $0.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.75 by $0.09. The company had revenue of $18.27 billion for the quarter, compared to the consensus estimate of $13.69 billion. Enterprise Products Partners had a net margin of 10.79% and a return on equity of 20.67%. The company’s revenue was up 60.8% on a year-over-year basis. During the same period in the previous year, the business earned $0.66 EPS. Research analysts forecast that Enterprise Products Partners L.P. will post 3.02 EPS for the current year. Analysts Set New Price Targets Several equities analysts have recently issued reports on EPD shares. The Goldman Sachs Group reaffirmed a “neutral” rating and issued a $38.00 price objective on shares of Enterprise Products Partners in a research note on Wednesday, June 17th. TD Cowen reissued a “hold” rating and set a $38.00 target price (down from $39.00) on shares of Enterprise Products Partners in a research note on Monday, August 3rd. Weiss Ratings lowered shares of Enterprise Products Partners from a “buy (a-)” rating to a “buy (b)” rating in a research report on Friday, October 2nd. JPMorgan Chase & Co. upped their price target on Enterprise Products Partners from $41.00 to $42.00 and gave the company a “neutral” rating in a report on Thursday, July 9th. Finally, Wall Street Zen downgraded Enterprise Products Partners from a “strong-buy” rating to a “buy” rating in a research report on Saturday, October 3rd. Seven equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Enterprise Products Partners has an average rating of “Hold” and a consensus price target of $40.12.
Check Out Our Latest Research Report on Enterprise Products Partners
(Free Report)
Enterprise Products Partners L.P. is a publicly traded master limited partnership that owns and operates midstream energy infrastructure in the United States. The company transports, stores, processes and exports oil, natural gas, natural gas liquids (NGLs), refined products and petrochemicals.
Its operations include pipelines, natural gas processing plants, NGL fractionation facilities, underground storage, marine terminals and export infrastructure. Enterprise serves producers, refiners, petrochemical manufacturers, utilities and other energy customers by connecting major producing regions with domestic and international markets.
Enterprise Products Partners was founded in 1968 and is headquartered in Houston, Texas.
Featured Articles Five stocks we like better than Enterprise Products Partners Skydance Just Became a Media Giant—With an $80 Billion Debt Load Could Velo3D Be the Next Defense Buyout Target? Penguin Solutions Is Soaring as AI Memory Demand Explodes Alphabet’s Chart Is Coiling—and the Fundamentals May Be Ready to Back It Up Want to see what other hedge funds are holding EPD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Enterprise Products Partners L.P. (NYSE:EPD – Free Report).
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Venture Visionary Partners LLC boosted its position in shares of Enterprise Products Partners L.P. (NYSE:EPD – Free Report) by 206.9% in the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 84,596 shares of the oil and gas producer’s stock after acquiring an additional 57,035 shares during the period. Venture Visionary Partners LLC’s holdings in Enterprise Products Partners were worth $3,013,000 as of its most recent filing with the Securities & Exchange Commission.
Several other institutional investors also recently bought and sold shares of EPD. Alps Advisors Inc. increased its position in shares of Enterprise Products Partners by 0.6% during the fourth quarter. Alps Advisors Inc. now owns 42,639,131 shares of the oil and gas producer’s stock worth $1,367,011,000 after purchasing an additional 260,305 shares in the last quarter. Auto Owners Insurance Co boosted its position in shares of Enterprise Products Partners by 3,106.0% in the 4th quarter. Auto Owners Insurance Co now owns 32,060,000 shares of the oil and gas producer’s stock worth $102,784,000 after purchasing an additional 31,060,000 shares in the last quarter. Energy Income Partners LLC purchased a new position in Enterprise Products Partners during the 2nd quarter worth $508,461,000. Bank of America Corp DE purchased a new position in Enterprise Products Partners during the 2nd quarter worth $416,553,000. Finally, BlackRock Inc. acquired a new position in Enterprise Products Partners during the 2nd quarter valued at about $255,325,000. 26.07% of the stock is currently owned by institutional investors and hedge funds.
Enterprise Products Partners Stock Performance Shares of EPD stock opened at $36.93 on Thursday. The firm has a market capitalization of $79.75 billion, a price-to-earnings ratio of 12.82, a price-to-earnings-growth ratio of 1.37 and a beta of 0.50. The company has a debt-to-equity ratio of 1.00, a current ratio of 0.93 and a quick ratio of 0.66. The business has a fifty day moving average of $38.12 and a 200 day moving average of $37.94. Enterprise Products Partners L.P. has a 1 year low of $30.01 and a 1 year high of $40.17.
Enterprise Products Partners (NYSE:EPD – Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The oil and gas producer reported $0.84 earnings per share for the quarter, beating the consensus estimate of $0.75 by $0.09. The business had revenue of $18.27 billion for the quarter, compared to the consensus estimate of $13.69 billion. Enterprise Products Partners had a return on equity of 20.67% and a net margin of 10.79%.The company’s quarterly revenue was up 60.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.66 EPS. As a group, research analysts expect that Enterprise Products Partners L.P. will post 3.02 earnings per share for the current year. Analysts Set New Price Targets A number of equities research analysts have commented on EPD shares. Capital One Financial initiated coverage on Enterprise Products Partners in a research note on Tuesday, September 22nd. They issued an “equal weight” rating and a $42.00 price target for the company. UBS Group restated a “buy” rating and set a $45.00 price target on shares of Enterprise Products Partners in a research note on Wednesday, June 17th. The Goldman Sachs Group restated a “neutral” rating and set a $38.00 price objective on shares of Enterprise Products Partners in a report on Wednesday, June 17th. Stifel Nicolaus initiated coverage on shares of Enterprise Products Partners in a research report on Thursday, September 10th. They issued a “hold” rating and a $40.00 price objective for the company. Finally, TD Cowen reiterated a “hold” rating and issued a $38.00 target price (down from $39.00) on shares of Enterprise Products Partners in a research note on Monday, August 3rd. Seven research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Enterprise Products Partners has a consensus rating of “Hold” and a consensus target price of $40.12.
Check Out Our Latest Research Report on Enterprise Products Partners
Enterprise Products Partners Company Profile (Free Report)
Enterprise Products Partners L.P. is a publicly traded master limited partnership that owns and operates midstream energy infrastructure in the United States. The company transports, stores, processes and exports oil, natural gas, natural gas liquids (NGLs), refined products and petrochemicals.
Its operations include pipelines, natural gas processing plants, NGL fractionation facilities, underground storage, marine terminals and export infrastructure. Enterprise serves producers, refiners, petrochemical manufacturers, utilities and other energy customers by connecting major producing regions with domestic and international markets.
Enterprise Products Partners was founded in 1968 and is headquartered in Houston, Texas.
Featured Articles Five stocks we like better than Enterprise Products Partners Skydance Just Became a Media Giant—With an $80 Billion Debt Load Could Velo3D Be the Next Defense Buyout Target? Penguin Solutions Is Soaring as AI Memory Demand Explodes Alphabet’s Chart Is Coiling—and the Fundamentals May Be Ready to Back It Up
Receive News & Ratings for Enterprise Products Partners Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Enterprise Products Partners and related companies with MarketBeat.com's FREE daily email newsletter.
Investing in dividend stocks can be a great way to generate passive income from your investment portfolio. Rather than chasing growth, income investors focus on investing in companies that consistently return cash to shareholders.
That's where energy pipeline giant Enterprise Products Partners (EPD -0.94%) shines. The company recently raised its distribution payout and offers investors a monster 6% yield. If you're considering investing in Enterprise Products for income, here's what you need to know.
Image source: The Motley Fool.
Enterprise Products Partners' business is built for dividends In July, Enterprise Products Partners declared a cash distribution of $0.56 per unit, a 2.8% increase from last year. Strong cash flow backs its distributions. In the second quarter, Enterprise had a 1.9x distribution coverage ratio, allowing it to retain $1.09 billion in operating cash flow after distributions to fund investments.
Enterprise stands out for its fully integrated, end-to-end infrastructure network that connects producers in major North American basins directly to domestic end users and international markets. Its massive network saw record volumes in the second quarter, moving an equivalent of 14.7 million barrels per day across its pipelines and 2.8 million barrels per day across its marine terminal docks.
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Its integrated business spans five midstream sectors: natural gas liquids, crude oil, natural gas, petrochemicals, and refined products. This integrated model helps Enterprise capture fees at multiple points along the value chain.
In addition, most of Enterprise's services are locked into fee-based, long-term contracts that insulate it from commodity price fluctuations. These contracts include fixed fees and minimum volume commitments, and often have inflation-indexed rate escalations. Customers pay for reserved pipeline capacity and midstream processing regardless of energy prices, giving Enterprise a predictable cash flow.
The company is investing heavily as U.S. natural gas production grows Enterprise should continue to benefit as the U.S. ramps up natural gas production. More natural gas, particularly in the Permian Basin, drives higher processing throughput. To handle these higher volumes, Enterprise has $6.5 billion in capital projects, which it aims to complete by early 2029.
The company is constructing five natural gas processing trains to capitalize on ongoing oil and gas growth in the Permian Basin. Each train adds 300 million cubic feet per day (MMcf/d) of gas processing capacity. Each new gas processing train helps extract 45,000 barrels of natural gas liquids per day.
Like many pipeline stocks, Enterprise operates as a master limited partnership (MLP), giving it a legal structure that makes it a solid income stock. That said, MLPs have different tax treatment, including a Schedule K-1 rather than a standard 1099-DIV, which can complicate tax filing.
That said, Enterprise Products Partners is a top dividend stock for income investors, thanks to its stable yield backed by long-term contracts and insulated from commodity price swings.
Certain high-yield dividend stocks hand the IRS a five-figure cut every single year, but the account type you choose changes that math completely. Here is what four popular income payers actually cost you depending on where you hold them.
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In 2026 the 24% federal bracket covers individuals whose taxable income tops $105,700 and married couples over $211,400. At that rate, a portfolio paying $50,925 a year in ordinary dividends sends $12,222 to the government annually. Hold the same stocks in a Roth IRA and that bill quickly drops to zero.
Ordinary Dividends Create the Widest Roth Gap Capital gains rates apply to qualified dividends. Most payouts from REITs, BDCs and mortgage REITs are nonqualified, so a taxable account taxes them at your full ordinary rate. A Roth removes that drag entirely, and the savings grow with the yield: a payout twice as large avoids twice the tax. One warning for taxable REIT holders: the Section 199A deduction lowers the effective rate on REIT dividends, so the real gap on the two equity REITs below is somewhat smaller than the full-rate math shows.
$500,000 Split Four Ways: Roth Versus Taxable This model places $125,000 into each of four ordinary-income payers. Yields are based on current prices and forward payouts.
Stock Yield Annual Income VICI 8.13% $10,163 OHI 5.87% $7,338 ARCC 10.19% $12,738 AGNC 16.55% $20,688 Roth: $50,925 gross, $0 tax, $50,925 net. Taxable at 24%: $50,925 gross, $12,222 tax, $38,703 net. Over 10 years, with no growth assumed, the Roth saves an extra $122,220.
VICI Properties (NYSE:VICI) is ultra-high-yield. Its annualized $1.84 payout stands well below 2026 adjusted funds from operations (AFFO) guidance of $2.45 to $2.47, and its properties are 100% occupied. The yield is this high partly because the stock fell 25.77% over the past year.
Omega Healthcare Investors (NYSE:OHI) is high-yield. It raised its quarterly dividend to $0.68 after holding it at $0.67 since 2020, and AFFO guidance of $3.22 to $3.26 covers the payout.
Ares Capital (NASDAQ:ARCC | ARCC Price Prediction) pays out mostly loan interest, all of it taxed at ordinary rates. Coverage is tight: second-quarter core earnings were 47 cents against a $0.48 dividend. That gap is supported by $1.38 per share of spillover income.
AGNC Investment (NASDAQ:AGNC) has made its 75th consecutive monthly payment of $0.12. Second-quarter net spread income of $0.40 per share covered $0.36 in dividends. The payout history shows the risk: the monthly payout was $0.18 in 2019, and the stock fell 17.23% last month.
Higher Brackets Lose Far More Outside a Roth Bracket Taxable Net Roth Advantage 22% $39,722 $11,204 24% $38,703 $12,222 32% $34,629 $16,296 35% $33,101 $17,824 37% $32,083 $18,842 What 20 Years Outside a Roth Really Costs The annual gap compounds. If the $12,222 yearly advantage is reinvested at a conservative 4%, it grows to $146,739 after 10 years and $363,948 after 20. Without reinvestment, the 20-year total would be $244,440. This assumes no price growth. It is simply what you give up by holding these four stocks outside a tax-advantaged account.
Plug your own bracket and reinvestment rate into the model below to see what the gap looks like for your situation.
MPLX and EPD: Strong Payers, Weak Roth Fits MPLX (NYSE:MPLX) yields 7.48% and has committed to 12.5% distribution growth through 2027. Enterprise Products Partners (NYSE:EPD) yields 6.09%, and distributable cash flow covers its payout 1.9x. Both are master limited partnerships (MLPs) that report on K-1s. Much of what they pay is return of capital, which already postpones tax when held outside a retirement account. Inside an IRA, unrelated business taxable income can trigger tax within the account itself.
What to Review Before Year-End Holders of AGNC or ARCC in a taxable account should multiply their position by the yields above and their bracket before filing their next return. Model a staged Roth conversion that starts with AGNC and ARCC, then VICI, then OHI, and compare the conversion tax to the annual savings at your bracket. If MPLX or EPD sits in an IRA now, check its K-1 for unrelated business taxable income. On tax drag alone, AGNC and ARCC lose the most outside a Roth, followed by VICI and OHI. MPLX and EPD carry IRA-specific tax complications that taxable accounts avoid. The quiet years between your last paycheck and your first RMD are when conversion math works best, something we sized up in a free Roth guide here: The Roth Window.
Contact [email protected] for any questions or corrections.
Enterprise Products Partners (EPD - Free Report) closed at $36.80 in the latest trading session, marking a +1.71% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.66%. On the other hand, the Dow registered a gain of 0.18%, and the technology-centric Nasdaq increased by 1.05%.
Shares of the provider of midstream energy services witnessed a loss of 7.09% over the previous month, trailing the performance of the Oils-Energy sector with its loss of 2.73%, and the S&P 500's gain of 0.55%.
Analysts and investors alike will be keeping a close eye on the performance of Enterprise Products Partners in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.75, indicating a 22.95% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $15.35 billion, up 27.65% from the prior-year quarter.
EPD's full-year Zacks Consensus Estimates are calling for earnings of $3.02 per share and revenue of $63.5 billion. These results would represent year-over-year changes of +13.53% and +20.74%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Enterprise Products Partners. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.35% lower within the past month. Currently, Enterprise Products Partners is carrying a Zacks Rank of #3 (Hold).
Investors should also note Enterprise Products Partners's current valuation metrics, including its Forward P/E ratio of 11.97. This signifies a discount in comparison to the average Forward P/E of 13.57 for its industry.
Also, we should mention that EPD has a PEG ratio of 1.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Oil and Gas - Production Pipeline - MLB industry was having an average PEG ratio of 1.9.
The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% of all 250+ industries.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
The yield you chase determines whether you need $1.3 million or over $5 million to walk away from your paycheck, and picking the wrong tier can leave you worse off than someone who started with far less.
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A $180,000 salary is $15,000 a month. Replacing that paycheck with portfolio income comes down to one equation: income target divided by yield equals capital required. The yield you choose swings the answer from about $1.3 million to more than $5 million. The sections below cover three yield levels, a sample combined portfolio, and the compounding math that changes the comparison.
Conservative Tier (3% to 4%): Highest Capital, Steadiest Income At 3.5%, $180,000 divided by 0.035 equals $5,142,857. At 4%, $180,000 divided by 0.04 equals $4,500,000. This level holds dividend growth funds, broad high-dividend ETFs, and blue-chip dividend payers.
Chevron (NYSE:CVX | CVX Price Prediction) yields about 3.4%. Its quarterly dividend rose from $1.08 in 2017 to $1.78, a 65% increase, and second-quarter free cash flow came in at $18.1 billion. The iShares Core High Dividend ETF (NYSEARCA:HDV) and the iShares Core Dividend Growth ETF (NYSEARCA:DGRO) each charge 0.08% a year. DGRO’s forward payout is about 2.0%, which falls below the levels because its holdings raise dividends faster.
The tradeoff: you need the most capital upfront, but income cuts are least likely, and the principal tends to grow over time.
Moderate Tier (5% to 7%): Less Capital, Slower Raises At 5%, $180,000 divided by 0.05 equals $3,600,000. At 7%, $180,000 divided by 0.07 equals $2,571,429. REITs, midstream partnerships, preferred shares, and high-dividend equity funds fill this range.
Enterprise Products Partners (NYSE:EPD) yields about 6.2%, with distributions up 2.8% year over year and covered 1.9x. Unitholders receive a K-1 tax form. VICI Properties (NYSE:VICI) yields about 7.9% and reports 100% occupancy, yet its shares fell 26% over the past year. Most leases carry 2.0% annual rent increases, which caps how fast income can grow.
Here you give up dividend growth, and over several decades the income may fall behind inflation.
Aggressive Tier (8% to 14%): Smallest Check, Shrinking Principal At 8%, $180,000 divided by 0.08 is $2,250,000. At 12%, it is $1,500,000. At 14%, it equals $1,285,714. Typical holdings include leveraged covered call funds, business development companies, mortgage REITs, and high-yield bond funds.
The Goldman Sachs S&P 500 Premium Income ETF (NASDAQ:GPIX) is a good entry point. Its forward distributions mean about 8.5%, paid monthly, and it sells options against an S&P 500 portfolio, which limits upside. Higher up this range, distribution cuts and principal erosion become common. Investors at these yields are often spending down the asset.
Combined the Tiers Into a 5.1% Portfolio One sample mix holds HDV 25%, DGRO 15%, GPIX 20%, VICI 15%, CVX 10%, and EPD 15% for a combined yield of 5.10%. $180,000 divided by 0.051 equals about $3,529,412. The 10-year Treasury currently yields 5.24%, slightly above that blend. The stock portfolio has to earn its place through dividend growth and price appreciation, since the Treasury pays more today.
Why the Smaller Yield Can Pay More Later Put $5,142,857 to work at 3.5% and grow the dividends 8% a year. After nine years, the portfolio pays about $359,821 a year. A $1,500,000 portfolio yielding 12% with no growth still pays $180,000 in year nine, and inflation has cut what that money buys. The conservative investor needs more money on day one and gets a paycheck that keeps rising.
Three Steps Before Choosing a Tier Add up what you actually spend each year. Payroll taxes and retirement contributions come out of a $180,000 salary but do not apply to dividend income, so the amount you need to replace may be well below $15,000 a month. Run the after-tax numbers for each level in your bracket. Chevron and the iShares funds pay qualified dividends at lower tax rates, VICI’s REIT dividends are mostly taxed as ordinary income, and Enterprise’s distributions come with K-1 reporting. Look at payout histories side by side. DGRO paid $0.175 per share in its September 2016 distribution and $0.385 in September 2026. Check whether a high-yield fund you are considering grew its payout over the same stretch. Contact [email protected] for any questions or corrections.
Enterprise Products Partners' (EPD +1.43%) well-above-market 6% yield is likely to be the biggest draw for investors. To put that yield into perspective, the S&P 500 index (^GSPC +0.73%) yields around 1%, and the average energy stock yields 2.2%. However, there is a lot more to like about this North American midstream giant as it steadily approaches a 30-year streak of annual distribution increases. Here's why it's likely to hit that mark in 2028.
Enterprise is most of the way there The most obvious reason why Enterprise is likely to hit 30 annual distribution increases by the end of 2028 is that it is already at 28 years as 2026 comes to a close. However, the really interesting thing here is that the current 28-year streak is basically as long as Enterprise has been publicly traded. So, the master limited partnership (MLP) has a very clear focus on returning value to unitholders via regular distribution growth.
Image source: Getty Images.
To be fair, the distribution doesn't grow quickly. Think low to mid single digits. However, with a 6% starting yield, that probably won't bother most yield-focused investors. Still, this is just the start of the story; the real reason Enterprise is likely to hit 30 years is the strength of its business.
Enterprise has a rock-solid business built on a toll-taker model Enterprise operates in the energy industry, a sector known for its volatility. However, Enterprise sidesteps the commodity risk that leads to most of the industry's volatility. It is a toll-taker, charging customers fees for the use of its energy infrastructure assets. It operates a large North American portfolio of pipelines, storage, and energy transportation assets.
Essentially, it helps move oil and natural gas around the world. Demand for energy is more important than commodity prices. Since energy is vital for the modern world, the volumes moving through Enterprise's vast midstream system tend to be high most of the time. And, with recent geopolitical conflicts highlighting the importance of energy security, demand for U.S. energy is likely to benefit from demand tailwinds. To put a number on its growth plans, Enterprise has $6.5 billion in capital investment projects underway, with projects coming online through 2029.
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The cash flows from new midstream assets will help fuel distribution growth, as will regular price increases on existing assets. But that's not the only factor to consider. Enterprise's lofty yield is also well covered by distributable cash flow. In 2025, the distribution was covered 1.7x. That leaves ample room for adversity before a distribution cut would be in the cards. Moreover, Enterprise has an investment-grade-rated balance sheet, so it could add debt in the short term to maintain its streak if needed.
And then there's another notable detail: insiders control roughly a third of Enterprise's units. Basically, insiders have a vested interest in seeing the distribution continue its slow and steady growth. And, just as important, it is unlikely that this conservatively managed midstream giant will do anything that would put its distribution at risk.
Enterprise isn't exciting, but that's the point At the end of the day, it is highly likely that this well-run midstream business will continue to generate reliable, growing cash flows to support its distribution and distribution growth. Oil prices may rise and fall along the way, but boring Enterprise will continue to move slowly forward, rewarding investors well with its lofty yield and, if my prediction is correct, hit 30 annual distribution increases within the next two years or so. If you are trying to live off the income your portfolio generates, this is a business you should get to know very well.
Historical data for the S&P 500 (^GSPC +0.73%) The Shiller CAPE (cyclically adjusted price-to-earnings) ratio dates back to 1871. During those 155 years, the ratio has crossed 40 only two times.
One of those times is happening right now. The prior instance ended in one of the worst stock market crashes ever. If history repeats itself, investors are in store for pain. However, some stocks are well-positioned to weather what comes next.
Image source: Getty Images.
A flashing warning signalEconomist Robert Shiller didn't create the ratio that bears his name with the intention of developing a warning signal for potential stock market crashes. Instead, he wanted a metric to accurately assess the stock market's valuation.
However, the S&P 500 Shiller CAPE ratio proved highly predictive of looming market declines. For example, the CAPE ratio topped 40 for the first time in late 1999 and early 2000. Within months, the dot-com bubble burst. The S&P 500 ultimately plunged nearly 50% and didn't fully recover for seven years.
While that was the only time other than now that the S&P 500 Shiller CAPE ratio rose above 40, the metric has spiked to high levels at other times in the past with disastrous results. In 1929, the CAPE ratio soared above 30 for the first time. Students of market history know what happened soon afterward: the Black Friday crash of October 1929 that ushered in the Great Depression.
In late 2021, the S&P 500 Shiller CAPE ratio rose above 36, something that it had done only once before. A few months later, the stock market entered a bear market that lasted through most of 2022.
Three stocks built to weather the storm.Fortunately, investors don't have to wring their hands in despair at the CAPE ratio being in scary territory again. Three stocks, in particular, should hold up well if another market sell-off is around the corner.
Johnson & Johnson (JNJ -1.02%) It is a no-brainer pick to weather any coming storm. For one thing, it's a member of the Dividend Kings (stocks that have increased their dividends for at least 50 consecutive years). J&J's streak of dividend hikes dates back to 1962.
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The healthcare giant's products enjoy stable demand even during economic turbulence. J&J is also well-positioned for growth thanks to a strong product lineup and a pipeline featuring 97 programs.
Procter & Gamble (PG +0.67%) It is another Dividend King that could help stabilize a volatile portfolio during a steep market decline. During the period following the dot-com bubble, consumer staple stocks fared much better than most stocks. And P&G recovered from the sell-off more quickly than most other consumer staple stocks.
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The key thing about Procter & Gamble is that it sells products that consumers need. Detergent, diapers, shaving cream, toothpaste, and a long list of other P&G products are essentials people buy even when they tighten their purse strings.
Enterprise Products Partners LP (EPD +1.43%) might be a surprising pick. Energy stocks can be highly volatile. However, Enterprise is a leader in the midstream energy industry with its more than 50,000 miles of pipeline. Midstream companies' revenue doesn't fluctuate with oil and gas prices; their operations are more like a toll road.
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Thanks to its juicy 6.2% distribution yield, Enterprise Products Partners pays investors to wait on better days. It's also highly inflation-linked, with escalation provisions in its long-term contracts.
What if the warning signal is wrong?Is a stock market decline guaranteed because the S&P 500 Shiller CAPE ratio is near its second-highest level ever? Not at all. The stock market may continue to climb despite its historically high valuation.
The good news is that Johnson & Johnson, Procter & Gamble, and Enterprise Products Partners can deliver solid gains whether the overall market rises or falls.
Generating over $83,000 a year in dividend income sounds like a job for REITs, but seven completely different asset classes can get you there at a fraction of the capital you might expect.
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A monthly income of $6,950 totals $83,400 a year. This article explains how much capital it takes to generate that income without owning any real estate investment trusts. The money comes from seven other sources: dividend equity, covered calls, preferred shares, a telecom carrier, a midstream energy partnership, and two business development companies (BDCs). BDCs lend to private middle-market firms and must pass most of their income through to shareholders.
The math rests on one equation: income divided by yield equals capital required. Treasuries set the floor for comparison. The 10-year yield is now 5.3%, so anything that yields more than that carries equity, credit, or distribution risk.
What Each Yield Tier Costs at $83,400 a Year Conservative Tier: Around 3.3% iShares Core High Dividend ETF (NYSEARCA:HDV) yields roughly 3.3% and charges 0.08% a year. At that yield, an $83,400 investment at 0.033 produces about $2.5 million. You need the most capital here, and you get the most room for growth in return. Over the past 10 years, the fund’s adjusted price rose 147%.
Moderate Tier: 6% to 7% Three holdings sit in this level, and iShares Preferred and Income Securities ETF (NASDAQ:PFF) yields about 6.0% on a forward basis. Verizon (NYSE:VZ | VZ Price Prediction) and Enterprise Products Partners (NYSE:EPD) each yield about 6.2%. At a 6% yield, $83,400 divided by 0.06 equals $1.39 million.
Payouts at this level grow slowly. Verizon raised its quarterly dividend to $0.7075. Enterprise lifted its distribution 3% year over year and covers it 1.9x with distributable cash flow. Preferred shares offer little price upside: PFF’s price is down 1% over the past year.
Aggressive Tier: 10% to 12% NEOS S&P 500 High Income ETF (CBOE:SPYI) yields about 12.0%. Both Ares Capital (NASDAQ:ARCC) and Capital Southwest (NASDAQ:CSWC) yield near 10.0%. With a 10% yield, $83,400 invested at 0.10 produces $834,000.
The higher yield comes with credit risk. Ares Capital’s net asset value per share slipped from $19.94 to $19.35, and non-accruals rose to 2%. Capital Southwest holds a portfolio that is 99% first-lien senior secured. SPYI writes calls against its stock holdings, which caps gains in strong markets.
Combining All Seven Into One $83,400 Portfolio Weighted by the allocation below, the portfolio yields 7.7%. That means you’d need about $1.08 million in capital.
Holding Weight Yield Capital Annual Income HDV 20% 3.3% $216,623 $7,149 SPYI 20% 12.0% $216,623 $25,995 ARCC 15% 10.0% $162,468 $16,247 PFF 15% 6.0% $162,468 $9,748 CSWC 10% 10.0% $108,312 $10,831 VZ 10% 6.2% $108,312 $6,715 EPD 10% 6.2% $108,312 $6,715 Overall, this portfolio with SPYI and the two BDCs makes up 45% of the capital and produces more than half of the income.
Why the Smallest Yield Can Win Over a Decade Ares Capital has paid $0.48 every quarter since early 2023. SPYI’s monthly payout went from $0.4755 in January 2023 to $0.5338 recently. Both are reliable payers, and neither has grown much.
By comparison, if HDV’s $7,149 slice grew 8% a year, it would reach about $14,290 in nine years. Fund the full target through HDV at the same growth rate, and it would grow from $83,400 to roughly $166,700. The combined mix gives up that compounding in exchange for needing about $1.44 million less capital upfront.
Run your own version of that compounding on the HDV slice:
Steps to Take Before Building This Portfolio Model your after-tax income. BDC distributions are taxed mostly as ordinary income, Enterprise sends unitholders a K-1, and covered-call payouts have their own tax treatment. Your $6,950 gross could shrink a lot depending on your bracket and account type. Check net asset value per share at Ares Capital and Capital Southwest every quarter. If NAV keeps falling while the dividend holds steady, the payout may be using up into capital. Compare how income would change over time if you reinvested part of the SPYI and BDC payouts into HDV during the first few years. Gradually shifting money toward a growing payer can build a slice of income that offsets inflation. Contact [email protected] for any questions or corrections.
Enterprise Products Partners (EPD - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this provider of midstream energy services have returned -9.5%, compared to the Zacks S&P 500 composite's -0.4% change. During this period, the Zacks Oil and Gas - Production Pipeline - MLB industry, which Enterprise Products falls in, has lost 7.4%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
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.
Enterprise Products is expected to post earnings of $0.75 per share for the current quarter, representing a year-over-year change of +23%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.
The consensus earnings estimate of $3.02 for the current fiscal year indicates a year-over-year change of +13.5%. This estimate has changed -0.4% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $3.22 indicates a change of +6.5% from what Enterprise Products is expected to report a year ago. Over the past month, the estimate has changed -0.7%.
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.
For Enterprise Products, the consensus sales estimate for the current quarter of $15.35 billion indicates a year-over-year change of +27.7%. For the current and next fiscal years, $63.5 billion and $66.13 billion estimates indicate +20.7% and +4.1% changes, respectively.
Last Reported Results and Surprise HistoryEnterprise Products reported revenues of $18.27 billion in the last reported quarter, representing a year-over-year change of +60.8%. EPS of $0.84 for the same period compares with $0.66 a year ago.
Compared to the Zacks Consensus Estimate of $13.6 billion, the reported revenues represent a surprise of +34.33%. The EPS surprise was +12%.
Over the last four quarters, Enterprise Products surpassed consensus EPS estimates two times. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it 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.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.
Bohdan Kucheriavyi is not a financial/investment advisor, broker, or dealer. He's solely sharing personal experience and opinion; therefore, all strategies, tips, suggestions, and recommendations shared are solely for informational purposes. There are risks associated with investing in securities. Investing in stocks, bonds, options, exchange-traded funds, mutual funds, and money market funds involves the risk of loss. Loss of principal is possible. Some high-risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including greater volatility and political, economic, and currency risks and differences in accounting methods. A security’s or a firm’s past investment performance is not a guarantee or predictor of future investment performance.
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 1.72% at $36.02. This change lagged the S&P 500's 0.17% loss on the day. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq lost 0.09%.
Heading into today, shares of the provider of midstream energy services had lost 5.59% over the past month, lagging the Oils-Energy sector's gain of 0.04% and the S&P 500's loss of 0.24%.
The investment community will be closely monitoring the performance of Enterprise Products Partners in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.75, reflecting a 22.95% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $15.35 billion, up 27.65% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.02 per share and revenue of $63.5 billion. These totals would mark changes of +13.53% and +20.74%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Enterprise Products Partners. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.35% lower. Right now, Enterprise Products Partners possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Enterprise Products Partners is at present trading with a Forward P/E ratio of 12.13. Its industry sports an average Forward P/E of 13.7, so one might conclude that Enterprise Products Partners is trading at a discount comparatively.
We can also see that EPD currently has a PEG ratio of 1.35. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Oil and Gas - Production Pipeline - MLB was holding an average PEG ratio of 1.94 at yesterday's closing price.
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 57, placing it within the top 24% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
The modern world isn't possible without energy, so every investor should probably have some exposure to the energy sector. The sector, however, is largely commodity-driven and highly volatile. But there is one niche of the broader energy sector that doesn't care if oil prices are $70 or $100: the Midstream. Here's why Enterprise Products Partners (EPD -1.72%), Enbridge (ENB -0.68%), and Energy Transfer (ET -0.95%) can reliably support yields of up to 6.7% regardless of what oil prices are doing.
Oil prices aren't doing anything unusual today Oil prices are over $100 per barrel as of this writing. The cost of filling up your car with gas can be a bit of a shock, and is a very real example of the impact that high oil prices have on the economy. But if you look back at history, high oil prices aren't exactly unusual. The energy sector is known for its volatility, driven by factors such as geopolitical events, supply and-demand dynamics, industry disasters, natural disasters, and extreme weather.
Image source: Getty Images.
While today's high prices are unwelcome and a shock to the wallet, such volatility is normal in the energy sector. You can sidestep much of that volatility, however, by being selective about the dividend stocks you buy in the energy sector. The midstream segment of the broader industry is largely a toll-taker business, generating reliable fees to support robust dividends. It connects the upstream (oil drillers) to the downstream (chemical and refining) and to the rest of the world. In the midstream, demand for the services that pipelines, storage, and transportation assets provide is more important than energy prices.
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3 high-yield midstream businesses to look at today One of the best options in the midstream is master limited partnership Enterprise Products Partners. It has a 6% yield and has increased its distribution annually for 28 years. That's basically as long as Enterprise has been publicly traded. Although it serves a broad range of energy customers, conservatively run MLP has a strong focus on natural gas, an increasingly important fuel in the utility sector. With capital spending plans of $6.5 billion, Enterprise is leaning into demand to build more fee-generating assets to drive its slow and steady growth.
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Enbridge is another solid choice, with a yield of roughly 6% and a dividend streak of 31 years. However, it is a bit unique in the midstream sector because its portfolio is broadly diversified. It owns material oil and natural gas pipeline assets, but it also operates regulated natural gas utilities and a small portfolio of renewable energy assets. All of its businesses generate reliable cash flows. That said, it tends to carry more leverage than other midstream operators because of the regulated utility assets it operates. On the positive side, the non-midstream assets add diversification, which will likely make Enbridge particularly interesting to risk-averse dividend investors.
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Energy Transfer tops this list on yield, with a distribution yield of 6.7%. Distributable cash flow covered the distribution by over 2x in the second quarter of 2026, which is very strong. But that has to be juxtaposed against the fact that Energy Transfer cut its distribution in 2020, using the freed-up cash to reduce leverage. It was something of a business reset, with the company shifting toward a slow-and-steady growth profile. The distribution is growing again and is above its level prior to the cut. For more aggressive types, Energy Transfer's lofty yield could be of interest.
Three strong options for dividend investors If you know you should have energy exposure in your portfolio, but just can't stomach the volatility of oil prices, the midstream is the place to be. With yields of up to 6.7%, Enterprise, Enbridge, and Energy Transfer are leading North American midstream businesses built on fee-producing infrastructure assets rather than commodities. Each has its own nuances to dig into, but all three are worth a close look regardless of how much volatile oil costs on any given day.
Enterprise Products Partners is upgraded to buy, driven by strong results and a return to higher distribution growth. EPD's 2026 and 2027 growth CapEx guidance increased, supporting Permian expansion and signaling higher-than-expected EBITDA growth. Distribution coverage remains robust, with a 1.7x–1.8x DCF ratio and potential for further distribution increases in 2027.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Enterprise Products Partners (EPD - Free Report) Enterprise Products Partners L.P. owns and operates a diversified midstream network across natural gas, natural gas liquids, crude oil, petrochemicals and refined products. The partnership provides gathering, treating, processing, transportation, fractionation, storage and terminaling services through an integrated asset base that links major United States supply basins to domestic demand centers and international markets.
EPD is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. EPD has a Growth Style Score of B, forecasting year-over-year earnings growth of 13.5% for the current fiscal year.
For fiscal 2026, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.11 to $3.02 per share. EPD boasts an average earnings surprise of +1.5%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, EPD should be on investors' short list.
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.
Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. The investments and strategies discussed within this article are solely my personal opinions and commentary on the subject. This article has been written for research and educational purposes only. Anything written in this article does not take into account the reader’s particular investment objectives, financial situation, needs, or personal circumstances and is not intended to be specific to you. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters. Just because something may be an enticing investment for me or someone else, it may not be the correct investment for you.
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.
Dependable dividend machines share 5 key traits in common. I identify the two 6% yielding dividend growth machines that meet these 5 requirements the best right now. I detail the investment thesis and risks for each.
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.
Last week, the Federal Reserve hiked rates for the first time since 2023 amid persistent inflation concerns. With markets pricing in at least one more hike this year, monetary policy remains top of mind for income-focused investors.
Replacing a top-tier salary with dividends sounds like a portfolio problem, but the yield you chase could cost you far more than the shares you buy. The answer depends on a tradeoff most investors never think to run.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
A $200,000 salary puts you inside the top decile of American earners, and replacing that paycheck with portfolio income is a math problem before it is a stock-picking problem. Every article in this series runs on one equation: income target divided by yield equals capital required. At $200,000, small yield differences translate to millions in required principal, and the reference point keeps shifting. The 10-year Treasury pays almost 5% right now, which changes how much risk you should accept to chase yield.
Conservative Tier: The $5 Million Answer At a 3.5% yield, replacing $200,000 requires $5,714,286. Bump the yield to 4%, and the number drops to $5,000,000. This is the range for broad high-dividend equity ETFs, quality dividend growers, and blue-chip Aristocrats.
iShares Core High Dividend ETF (NYSEARCA:HDV) screens for financially healthy U.S. payers, charges a 0.08% expense ratio, and returned 22% over the past year. WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW) leans the other way, pairing a slim current yield with a 272% ten-year total return. AbbVie (NYSE:ABBV | ABBV Price Prediction) sits in the same neighborhood as an individual name, yielding 2.6% with a $6.92 annualized forward dividend. You need the most capital here, but principal is likeliest to grow with the payout.
Moderate Tier: The REIT and MLP Range At 6%, you need $3,333,333. At 7%, the requirement falls to $2,857,143. This is the natural home for net-lease REITs, midstream partnerships, and covered-call equity funds.
W. P. Carey (NYSE:WPC) yields 5.6%, with 48% of annualized base rent tied to CPI escalators and quarterly distributions that rose from $0.86 in late 2023 to $0.95 in September 2026. Enterprise Products Partners (NYSE:EPD) yields 5.7%, backed by 1.9x distribution coverage and a $5.0 billion buyback. The tradeoff: distribution growth is slower, MLPs bring K-1 tax paperwork, and REIT payouts are ordinary income unless held in a Roth or IRA.
Aggressive Tier: Where the Math Gets Seductive At 10%, $200,000 requires $2,000,000. Push to 12%, and you need only $1,666,667. This is the world of leveraged covered-call funds, business development companies, mortgage REITs, and high-yield bond funds.
The number looks great. The catch is durability. Distributions in this range routinely include return of capital, get cut when volatility drops or credit spreads widen, and often ride portfolios whose net asset value grinds lower year after year. You are effectively spending down the asset while calling it income.
Why a 3.5% Yield Can Beat a 12% Yield Here is the piece most $200,000 replacement plans miss. AbbVie paid a $0.40 quarterly dividend in 2013, but that same dividend is $1.73 in 2026. A shareholder who bought at the lower yield now collects a payout many times the original, and the shares are up 529% over ten years, on top of the income.
A 12% distribution that never grows stays at $200,000 forever, and inflation quietly eats it. A 3.5% yield growing 8% annually doubles in roughly nine years. Over a 20-year retirement, the compounding portfolio can pass the static one in absolute dollars even though it started with far less current income. That is the whole case for a dividend ladder built so you never have to sell a share, which we walked through step by step in a free guide here.
Three Moves Before You Pick a Tier Replace spending, not salary. A $200,000 gross salary might correspond to $140,000 of after-tax spending. Solve for what your household actually consumes, and the capital requirement can drop by a full tier. Blend, do not pick. A mixed sleeve of growth-oriented equity funds, a REIT or two, and a midstream position can land near a 4.5% to 5% portfolio yield while preserving compounding, cutting the required principal well below the pure-conservative number. Stress-test the tax bill. REIT distributions, MLP K-1s, and covered-call return of capital each behave differently. Model your specific bracket before you assume a headline yield is what lands in your account. Contact [email protected] for any questions or corrections.
Enterprise Products Partners L.P. (NYSE:EPD – Get Free Report)’s share price rose 1.3% during trading on Friday . The stock traded as high as $39.10 and last traded at $38.96. Approximately 4,889,597 shares traded hands during mid-day trading, an increase of 25% from the average session volume of 3,904,107 shares. The stock had previously closed at $38.45.
Wall Street Analyst Weigh In EPD has been the topic of a number of research analyst reports. UBS Group reissued a “buy” rating and issued a $45.00 price target on shares of Enterprise Products Partners in a research note on Wednesday, June 17th. Wall Street Zen upgraded shares of Enterprise Products Partners from a “buy” rating to a “strong-buy” rating in a report on Sunday, September 6th. JPMorgan Chase & Co. raised their target price on shares of Enterprise Products Partners from $41.00 to $42.00 and gave the stock a “neutral” rating in a research report on Thursday, July 9th. The Goldman Sachs Group reaffirmed a “neutral” rating and set a $38.00 price target on shares of Enterprise Products Partners in a research report on Wednesday, June 17th. Finally, Stifel Nicolaus assumed coverage on shares of Enterprise Products Partners in a research note on Thursday, September 10th. They set a “hold” rating and a $40.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $39.87.
View Our Latest Stock Report on Enterprise Products Partners
The firm’s 50 day simple moving average is $38.51 and its 200-day simple moving average is $37.96. The company has a market capitalization of $84.13 billion, a PE ratio of 13.53, a P/E/G ratio of 1.42 and a beta of 0.50. The company has a quick ratio of 0.66, a current ratio of 0.93 and a debt-to-equity ratio of 1.00. Enterprise Products Partners (NYSE:EPD – Get Free Report) last posted its earnings results on Wednesday, July 29th. The oil and gas producer reported $0.84 earnings per share for the quarter, beating the consensus estimate of $0.75 by $0.09. Enterprise Products Partners had a net margin of 10.79% and a return on equity of 20.67%. The business had revenue of $18.27 billion for the quarter, compared to analyst estimates of $13.69 billion. During the same quarter in the previous year, the business posted $0.66 EPS. The business’s quarterly revenue was up 60.8% on a year-over-year basis. As a group, equities research analysts anticipate that Enterprise Products Partners L.P. will post 3.03 EPS for the current year.
Enterprise Products Partners Increases Dividend The business also recently announced a quarterly dividend, which was paid on Friday, August 14th. Investors of record on Friday, July 31st were issued a dividend of $0.56 per share. This represents a $2.24 annualized dividend and a dividend yield of 5.7%. The ex-dividend date was Friday, July 31st. This is an increase from Enterprise Products Partners’s previous quarterly dividend of $0.55. Enterprise Products Partners’s dividend payout ratio (DPR) is 77.78%.
Institutional Inflows and Outflows Several institutional investors and hedge funds have recently made changes to their positions in the company. Security National Bank of Sioux City Iowa IA bought a new stake in shares of Enterprise Products Partners in the 2nd quarter valued at approximately $67,000. Anchor Investment Management LLC raised its holdings in shares of Enterprise Products Partners by 13.5% during the second quarter. Anchor Investment Management LLC now owns 42,150 shares of the oil and gas producer’s stock worth $1,549,000 after purchasing an additional 5,004 shares during the period. Core Capital Management & Research inc. bought a new position in shares of Enterprise Products Partners in the 2nd quarter worth about $4,393,000. Sequoia Financial Advisors LLC lifted its position in shares of Enterprise Products Partners by 1.9% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 66,928 shares of the oil and gas producer’s stock worth $2,460,000 after buying an additional 1,228 shares during the last quarter. Finally, Tidal Investments LLC boosted its holdings in shares of Enterprise Products Partners by 95.7% in the 2nd quarter. Tidal Investments LLC now owns 118,324 shares of the oil and gas producer’s stock valued at $4,350,000 after buying an additional 57,860 shares during the period. 26.07% of the stock is currently owned by hedge funds and other institutional investors.
About Enterprise Products Partners (Get Free Report)
Enterprise Products Partners L.P. (NYSE: EPD) is a publicly traded midstream energy partnership that provides transportation, storage, processing and export services for crude oil, natural gas, natural gas liquids (NGLs), petrochemicals and refined products. The company operates an integrated network of pipelines, processing plants, fractionation facilities, storage assets and marine terminals.
Enterprise’s NGL operations include natural gas processing, NGL fractionation and the production and distribution of ethane, propane, butanes and natural gasoline.
Further Reading Five stocks we like better than Enterprise Products Partners Lennar’s Earnings Miss May Be Sending a Bigger Warning About U.S. Housing Priced for a Pullback or More Gains? These 3 Stocks Are Testing the Limits These 3 Agentic AI Stocks Have More Than Hype Behind Their Growth Stories Not Just Banks: 3 Trading Stocks to Watch After the Fed Rate Hike Receive News & Ratings for Enterprise Products Partners Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Enterprise Products Partners and related companies with MarketBeat.com's FREE daily email newsletter.
Artificial intelligence (AI) is really just a fancy computer program. While much of the news focuses on the computer chips and data centers needed to support AI, that ecosystem doesn't work without electricity. Access to reliable power has been a major bottleneck in the AI build-out, with utilities and other power providers likely to benefit from a step change in electricity demand. But there's another step, seemingly outside of the electricity sector, that you should consider if you are a dividend investor: the midstream sector.
Businesses like Enterprise Products Partners (EPD +1.14%), Enbridge (ENB -0.04%), and Energy Transfer (ET +0.43%) have ultra-high yields and keep winning despite not providing power to AI companies. Here's why, with yields of up to 6.3%, you'll want to get to know these three midstream giants.
Image source: Getty Images.
What do midstream businesses do? At their core, Enterprise, Enbridge, and Energy Transfer own the energy infrastructure that helps to move oil and natural gas around the world. They largely charge fees for the use of their assets, so the volumes they move are more important than the prices of the commodities being transported. Basically, they are service providers to energy companies in the upstream and downstream of the broader energy sector.
The truth is, Enterprise, Enbridge, and Energy Transfer are kind of boring. However, the fact that energy demand in the United States is expected to increase by 60% between 2025 and 2045 is a very big deal (for reference, demand increased by only 10% between 2005 and 2025). Natural gas, which is most efficiently moved by pipeline, is increasingly being relied on to generate electricity.
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So, higher electricity demand will mean higher demand for natural gas. And that will lead to more volume moving through the pipelines owned by this trio of midstream giants. It also means that more pipelines will be needed, offering capital investment opportunities. And overseas demand for natural gas adds even more growth appeal to the story, since AI is a global phenomenon, not just a U.S. event.
Which midstream giant is right for your portfolio? Enterprise Products Partners is a bellwether name in the midstream sector. The master limited partnership (MLP) has increased its distribution annually for 28 years and offers an attractive 5.7% yield. With slow and steady distribution growth in the low single digits, this financially strong business will likely be a good pick for conservative investors.
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Enbridge is based in Canada and has a yield of 5.8%. Its dividend streak is up to 31 years, in Canadian dollars. The dividends U.S. investors receive will fluctuate along with exchange rates. It also has a more diversified portfolio than most of its pipeline peers, with regulated natural gas utilities and a small clean energy business in the mix. However, the really big difference here is that Enbridge is not an MLP. That means investors don't have to deal with a K-1, and it can be easily held in a tax-advantaged retirement account, such as an IRA. MLPs don't play nicely with tax-advantaged accounts. Like Enterprise, it is a conservatively managed business, so most investors will be comfortable owning it.
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Energy Transfer is another MLP, but it has the highest yield on this list at 6.3%. For those looking to maximize the income their portfolios generate, it will be an attractive option. The caveat is that Energy Transfer cut its distribution in half during the COVID pandemic. The purpose was to strengthen the balance sheet, and that task has been completed. The distribution is growing again, with a low single-digit growth target. Moreover, the distribution is above its level prior to the cut and well covered by distributable cash flow. For more aggressive investors willing to overlook past transgressions, it could be worth a deep dive.
Who powers the power companies? At the end of the day, high-yield midstream businesses like Enterprise, Enbridge, and Energy Transfer are still picks-and-shovels plays in the development of AI. Only, they don't directly support AI in any way; they support the power companies that support AI, effectively operating one step back from the action. If you are a dividend lover, these three energy players are worth a closer look right now, as electricity demand starts to take off.
Enterprise Products Partners (EPD +1.14%) has delivered 28 years of distribution growth. The master limited partnership (MLP) has returned $65 billion in cash to its investors during that period through its growing distribution and unit repurchases. The MLP currently yields 5.9%, putting it well above the S&P 500's 1% yield.
The pipeline company is in a strong position to continue increasing its high-yielding distribution. That makes it an ideal option for investors seeking a lifetime source of passive income.
Image source: Getty Images.
Built on a fortified foundationEnterprise Products Partners owns and operates an integrated energy midstream platform with diversification across products and markets. Its assets are highly resilient as fee-based contracts underpin about 80% of its earnings, muting much of the impact of commodity price volatility. It has historically delivered income stability during major market downturns and growth in normal operating conditions.
The MLP generated $2.3 billion of operational distributable cash flow during the second quarter, a robust 21% increase, driven by expansion projects and strong market conditions. That was enough to cover its high-yield payout by a comfy 1.9x, enabling it to retain $1.1 billion in cash to reinvest in the partnership. The pipeline company's growing cash flow and strong coverage level have allowed it to increase its distribution by 2.8% over the past year.
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Enterprise Products Partners further fortifies its high-yielding distribution with a balance sheet that sets the standard for financial strength in the energy midstream sector. It has a leading A-/A3 credit rating, supported by a low leverage ratio of 3.0x (comfortably within its conservative 2.75x-3.25x target range).
The company's stable cash flows, robust post-distribution free cash flow, and balance sheet strength give it the flexibility to weather market downturns and continue investing to grow the partnership. It also allows the company to return additional cash to investors via unit repurchases ($405 million over the last year as part of its $5 billion unit repurchase program).
Several years of growth visibilityEnterprise Products Partners ended the second quarter with $6.5 billion of major capital projects under construction. They included several new natural gas processing plants across the Permian Basin, the expansion and extension of a natural gas liquids pipeline, a new NGL fractionator, and expanded LPG export capacity. The company expects these projects to enter commercial service through the first quarter of 2029. That provides it with lots of visibility into its growth over the next few years.
Meanwhile, there's more growth likely ahead. The company forecasts that U.S. natural gas demand will grow by 11 Bcf/d to 26 Bcf/d by 2030, driven by AI data centers and liquefied natural gas (LNG) exports. Additionally, the company sees strong supply growth ahead for crude oil, ethane, and LPG. Enterprise Products Partners' extensive, strategically located infrastructure puts it in a strong position to capitalize on the expected growth in supply and demand. It should continue to approve new pipeline expansions, natural gas processing plants, NGL fractionators, and export capacity expansion projects.
Enterprise Products Partners also has the financial flexibility to make acquisitions as opportunities arise, enhancing its growth. Last year, it bought Occidental Petroleum's natural gas gathering affiliate in the Permian Basin for $580 million. The MLP is now building new natural gas processing plants to support Occidental's growth in the region. Meanwhile, it bought Pinon Midstream for $950 million in 2024 to expand its sour gas treating and acid gas injection well capacity in the Permian, which it's currently expanding.
A durable passive income investmentEnterprise Products Partners has delivered 28 consecutive years of distribution increases, which is impressive considering the volatility in the energy sector. That track record is a testament to its resilient business model, fortress financial foundation, and steady growth. While there's no guarantee the MLP (which sends investors a Schedule K-1 Federal tax form each year) will continue increasing its high-yielding distribution for years to come, the company is currently in a strong position to do so. That makes it an ideal high-yield dividend stock to buy and hold for a potential lifetime of passive income.
SummaryBuilding a $100,000 dividend snowball is foundational for financial security and passive income.I detail how I would go about doing so in today's rising rate environment.I also share some specific picks and how to allocate capital on a percentage basis to build the snowball.Looking for a portfolio of ideas like this one? Members of High Yield Investor get exclusive access to our subscriber-only portfolios. Learn More » MARHARYTA MARKO/iStock via Getty Images
The late Charlie Munger once extolled the virtues of getting $100,000 amassed in your portfolio as the key first step on the road to financial prosperity. This number makes sense from both a practical and psychological
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of SGOV, BOXX, EPD, ET, PFFA, OBDC, MSDL, BAM, RYN 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.
Enterprise Products Partners (EPD - Free Report) ended the recent trading session at $38.09, demonstrating a -1.86% change from the preceding day's closing price. This change lagged the S&P 500's 0.45% loss on the day. Elsewhere, the Dow saw a downswing of 1.21%, while the tech-heavy Nasdaq depreciated by 0.01%.
Shares of the provider of midstream energy services have appreciated by 0.44% over the course of the past month, underperforming the Oils-Energy sector's gain of 3.72%, and outperforming the S&P 500's loss of 2.43%.
The investment community will be closely monitoring the performance of Enterprise Products Partners in its forthcoming earnings report. The company is forecasted to report an EPS of $0.75, showcasing a 22.95% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $15.13 billion, indicating a 25.86% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.03 per share and a revenue of $63.08 billion, representing changes of +13.91% and +19.94%, respectively, from the prior year.
Investors should also pay attention to any latest changes in 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.59% upward. Enterprise Products Partners presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Enterprise Products Partners is at present trading with a Forward P/E ratio of 12.82. Its industry sports an average Forward P/E of 14.55, so one might conclude that Enterprise Products Partners is trading at a discount comparatively.
Also, we should mention that EPD has a PEG ratio of 1.42. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Oil and Gas - Production Pipeline - MLB industry held an average PEG ratio of 2.07.
The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 77, finds itself in the top 32% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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) 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 +0.4% over the past month versus the Zacks S&P 500 composite's -2.4% change. The Zacks Oil and Gas - Production Pipeline - MLB industry, to which Enterprise Products belongs, has gained 0.9% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
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.
Enterprise Products is expected to post earnings of $0.75 per share for the current quarter, representing a year-over-year change of +23%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.6%.
The consensus earnings estimate of $3.03 for the current fiscal year indicates a year-over-year change of +13.9%. This estimate has changed +1.6% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $3.23 indicates a change of +6.8% from what Enterprise Products is expected to report a year ago. Over the past month, the estimate has changed +0.7%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Enterprise Products is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Enterprise Products, the consensus sales estimate for the current quarter of $15.13 billion indicates a year-over-year change of +25.9%. For the current and next fiscal years, $63.08 billion and $66.95 billion estimates indicate +19.9% and +6.1% changes, respectively.
Last Reported Results and Surprise HistoryEnterprise Products reported revenues of $18.27 billion in the last reported quarter, representing a year-over-year change of +60.8%. EPS of $0.84 for the same period compares with $0.66 a year ago.
Compared to the Zacks Consensus Estimate of $13.6 billion, the reported revenues represent a surprise of +34.33%. The EPS surprise was +12%.
Over the last four quarters, Enterprise Products surpassed consensus EPS estimates two times. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
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.
Bottom LineThe 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.
