Top Dividend Stocks Enterprise product partners (EPD) is back in the spotlight, with an impressive 7.2% return and improving fundamentals.
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Houston-based Enterprise Products operates as a Master Limited Partnership (MLP) and manages more than 50,000 miles of crude oil and natural gas pipelines. It also maintains natural gas storage facilities and processing sites.
Since Enterprise Product Partners was featured in this column in August, the company has again increased its distribution to 51.5 cents per quarter at the beginning of this year. That marked the 26th consecutive year of dividend increases for the company.
With a current annualized yield of 7.2%, Enterprise Products stands out as a top dividend stock, well above the S&P 500’s 1.3% average.
Enterprise Products will pay its next distribution of 51.5 cents on May 14. The ex-dividend date is April 29.
Earnings report approaching for top dividend stocks
The company will report first-quarter earnings on April 30. Analysts estimate earnings per share at 67 cents, a year-over-year increase of 5%. Wall Street expects revenue to rise 11% to $13.83 billion.
Annual earnings are expected to rise from $2.53 per share in 2023 to $2.71 this year, and rise further to $2.84 in 2025.
Given their highly predictable cash flows, pipeline stocks like Enterprise Products are cornerstones of any income-based portfolio. Although these companies are exposed to changes in energy prices, that risk is much smaller than for energy producers.
With debt rated A by S&P Global, conservative investors can find reassurance in the stock.
Furthermore, stocks have shown remarkable stability, with annualized volatility of less than 13% over the past year. To put this into perspective, this volatility is lower than that of defensive stalwarts Procter & Gamble (PG) and Coca-Cola (KO), which also offer much lower benefits.
Although the dividend stock crossed a 27.95 buy point in March, it currently remains within a 5% buy zone. The stock has fallen back to the 50-day moving average, where it is finding support. Please note that market risk is currently high.
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