#1 - Enterprise Product Partners (NYSE:EPD)
Dividend Yield: 8.60%
Market Capitalization: $46.04 billion
Dividend yield can be a misleading metric. A high dividend yield can sometimes be a trap because it gets investors plowing money into laggard stocks. Enterprise Product Partners (NYSE:EPD) is no yield trap. The company operates as a holding company engaging in the production and trade of natural gas and petrochemicals. This has been a sector that’s seen a renaissance as awareness grows that natural gas will be an important point of our transition away from traditional fossil fuels.
Through three quarters of the year, Enterprise Product Partners has already delivered $29.44 billion in revenue, surpassing its revenue for all of 2020. And the company is also likely to beat 2020 earnings when it reports its fourth-quarter in February 2022.
And the company has increased its dividend in each of the last 24 years, putting it one year shy of Dividend Aristocrat status. Some may quibble with its three-year dividend growth which is well below the sector average. However, a 24-year track record of increasing its dividend offers security that more than makes up for the softer year-over-year growth.
About Enterprise Products Partners
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.
Read More - Current Price
- $28.92
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 11 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $32.58 (12.7% Upside)
