Samuel Smith has a diverse background that includes being lead analyst and Vice President at several highly regarded dividend stock research firms and running his own dividend investing YouTube channel. He is a Professional Engineer and Project Management Professional and holds a B.S. in Civil Engineering & Mathematics from the United States Military Academy at West Point and has a Masters in Engineering from Texas A&M with a focus on applied mathematics and machine learning.Samuel leads the High Yield Inve ...

Core Viewpoint - The current market environment, particularly the Nasdaq Composite's drop of over 10%, has heightened investor fear, prompting a search for safer investment options [1]. Group 1: PepsiCo - PepsiCo is a major player in consumer staples, particularly in salty snacks and beverages, but has faced poor stock performance recently [3]. - For 2024, PepsiCo's organic revenue is projected to grow by 2%, with adjusted earnings expected to rise by 9%. For 2025, management anticipates low single-digit organic growth and mid-single-digit earnings growth [4]. - Despite these challenges, PepsiCo's dividend yield remains historically high at approximately 3.5%, making it an attractive option for investors seeking stability [5]. Group 2: Enterprise Products Partners - Enterprise Products Partners operates in the midstream segment of the energy sector, which is less volatile compared to upstream and downstream segments [6]. - The company generates revenue by charging fees for the use of its infrastructure, making it less sensitive to commodity price fluctuations and maintaining robust demand even during economic downturns [7]. - Enterprise has increased its distribution for 26 consecutive years, has an investment-grade balance sheet, and its distributable income covers its distribution by 1.7 times, with a high yield of 6.4% [8]. Group 3: Black Hills Corporation - Black Hills Corporation is a regulated utility serving 1.35 million customers across several states, focusing on reliability and stability [10]. - The company has achieved Dividend King status due to its consistent dividend growth, with a current yield around 4.5% [10]. - Management targets long-term earnings growth of 4% to 6% annually, making it a low-risk investment option for those seeking stability in turbulent market conditions [11]. Group 4: General Investment Strategy - In light of market volatility, investors are encouraged to consider reliable income stocks like PepsiCo, Enterprise, and Black Hills, which have been undervalued and are gaining attention from Wall Street [13].

Core Viewpoint - The article highlights three reliable dividend-paying companies: Enterprise Products Partners, Chevron, and Enbridge, each offering attractive yields and strong financial foundations, making them compelling investment opportunities as March begins [1]. Group 1: Enterprise Products Partners - Enterprise Products Partners offers a 6.4% yield, operating as a North American midstream giant with pipeline, storage, processing, and transportation assets [2]. - The company has increased its distribution annually for 26 consecutive years, with a distribution coverage ratio of 1.7 times its distributable cash flow, indicating a strong ability to maintain its dividend [3]. - The investment-grade-rated balance sheet suggests that significant adverse events would be required to jeopardize the distribution, making it a stable income-generating option [3][4]. Group 2: Chevron - Chevron provides a 4.3% dividend yield and operates in the integrated energy sector, encompassing upstream, midstream, and downstream assets, which exposes it more directly to commodity prices [5]. - The company has a strong track record of annual dividend increases for 37 years and maintains a low debt-to-equity ratio, allowing it to support its business and dividend during energy downturns [6]. - Chevron's strategy includes paying down debt during market recoveries, positioning it well for future downturns [6][7]. Group 3: Enbridge - Enbridge offers a 6.2% yield, backed by an investment-grade-rated balance sheet and a 30-year history of annual dividend increases [8]. - The company's distributable cash flow payout ratio is within its target range of 60% to 70%, indicating a balanced approach to dividend payments [8]. - Enbridge is transitioning from oil-related assets to natural gas and renewable energy, with approximately 3% of EBITDA coming from renewable power, making it a unique high-yield option with a clean energy hedge [9]. Group 4: Overall Comparison - While Enterprise, Chevron, and Enbridge are all categorized as energy stocks, each has distinct business models and strategies that enhance their attractiveness as investment options [10].

A month has gone by since the last earnings report for Enterprise Products Partners (EPD) . Shares have added about 0.2% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Enterprise Products due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Enterprise Q4 Earnings Top ...

Industry Overview - The energy sector is crucial for the economy, but energy stocks have experienced volatility and underperformance compared to the broader market due to factors like slower growth in China and stabilized energy prices [1] - Many energy companies are adopting a disciplined capital management approach, strategically deploying capital while rewarding shareholders through dividends and share repurchase programs [2] Company Analysis: ExxonMobil and Chevron - ExxonMobil and Chevron are two of the largest integrated oil and gas companies in the U.S., operating across the entire oil and gas supply chain, which includes exploration, production, transportation, and refining [3] - Their diversified business model helps stabilize performance in the volatile energy sector, with exploration and production thriving during high oil prices, while transportation and refining mitigate volatility during price declines [4] - Both companies have a strong history of dividend growth, with ExxonMobil increasing dividends for 42 years and Chevron for 38 years [4] - ExxonMobil and Chevron have improved their financial positions by using past windfall profits to pay down debt, with long-term debts peaking at $66 billion and $44 billion, respectively, and they have since paid down 43% and 45% of these debts [6] - The dividend yields for ExxonMobil and Chevron are attractive at 3.5% and 4.1%, respectively, and both stocks are trading around 12 times forward earnings, indicating reasonable pricing and strong potential for shareholder rewards [7] Company Analysis: Enterprise Products Partners - Enterprise Products Partners is a leading provider of midstream services in the U.S., with a vast network of over 50,000 miles of pipelines and significant storage capacity for crude oil, natural gas, and refined products [8] - The company offers a high dividend yield of 6.25%, supported by stable cash flows from long-term contracts, and has recently achieved record volumes across its systems [9] - The current political environment, particularly the Trump administration's focus on deregulation, could benefit pipeline operators like Enterprise Products, potentially expediting project approvals [9][10] - Enterprise Products has approximately $7.6 billion in projects under construction, with $6 billion expected to come online in 2025, positioning the company well for future growth [10] - The stable dividend payout and the increasing demand for energy, particularly for powering data centers, make Enterprise Products a solid investment opportunity [11]

In the latest market close, Enterprise Products Partners (EPD) reached $33.09, with a -0.69% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.12%. Elsewhere, the Dow saw an upswing of 1.14%, while the tech-heavy Nasdaq appreciated by 1.46%.Heading into today, shares of the provider of midstream energy services had gained 1% over the past month, outpacing the Oils-Energy sector's loss of 5.86% and the S&P 500's loss of 4.13% in that time.The investment ...

Enterprise Products Partners (EPD 1.80%) is trading for way less than $100 a share, so even a very modest investment can get you in the door of this midstream master limited partnership (MLP). The big reason to take the leap is the 6.3% distribution yield that you'll collect, which is multiples higher than the tiny 1.2% yield of the S&P 500 index.The good news doesn't stop there. Here are a few more reasons why Enterprise is the best high-yield midstream investment for you right now.What does Enterprise Pro ...

Gas Processing Capacity - The company operates 11,072 MMcf/d of net gas processing capacity and a total gas processing capacity of 12,220 MMcf/d as of February 1, 2025[36]. - Utilization rates for natural gas processing facilities were approximately 68.4%, 69.6%, and 66.5% for the years ended December 31, 2024, 2023, and 2022, respectively[40]. - The company is constructing an eighth natural gas processing train ("Orion") with a capacity of 300 MMcf/d, expected to be operational in Q3 2025[42]. - Two additional natural gas processing trains at Mentone West, each with a capacity of 300 MMcf/d, are expected to be operational in Q3 2025 and H1 2026[44]. NGL Pipeline and Marketing - The company owns and operates a total of 18,613 miles of NGL pipelines, facilitating the transportation of mixed NGLs and purity NGL products[49]. - The Mid-America Pipeline System, which is 7,103 miles long, is one of the key assets in the company's NGL pipeline network[49]. - Transportation fees for NGL pipelines are based on tariffs regulated by governmental agencies or contractual arrangements[47]. - The company’s NGL marketing results depend on the difference between NGL sales prices and associated purchase costs, with market prices subject to fluctuations[34]. - The net throughput volumes for the NGL pipelines were 4,355 MBPD, 4,040 MBPD, and 3,703 MBPD for the years ended December 31, 2024, 2023, and 2022, respectively, indicating a year-over-year increase of 7.8% from 2023 to 2024[55]. - The Bahia NGL Pipeline, with a design capacity of 600 MBPD, is expected to be operational by the fourth quarter of 2025, enhancing transportation capacity from the Permian Basin[59]. - The overall utilization rates for NGL fractionators were 106.4%, 106.0%, and 100.0% for the years ended December 31, 2024, 2023, and 2022, respectively, reflecting consistent operational efficiency[65]. - The Mont Belvieu area NGL fractionators have a total net plant capacity of 1,498 MBPD and a total plant capacity of 1,667 MBPD, supporting significant processing capabilities[63]. - Plans to construct NGL fractionator 14 ("Frac 14") with a design capacity of 150 MBPD are underway, expected to enter service in the third quarter of 2025[66]. Storage Capacity - The company operates a total of 216.7 MMBbls of net usable storage capacity across various locations, with the largest facility in Mont Belvieu having a capacity of 169.5 MMBbls[71]. - The company operates a total of 145 above-ground tanks with a net storage capacity of 44.0 MMBbls across various terminals in Texas and Oklahoma[99]. - The EHT marine terminal can load up to 2.9 MMBPD, equating to 88 MMBbls per month, making it one of the largest facilities on the Gulf Coast[102]. Crude Oil Pipelines - Net throughput volumes for crude oil pipelines were 2,510 MBPD, 2,461 MBPD, and 2,222 MBPD for the years ended December 31, 2024, 2023, and 2022, respectively[86]. - The South Texas Crude Oil Pipeline System has a capacity to transport approximately 450 MBPD of crude oil and condensate[95]. - The Seaway Pipeline has an aggregate transportation capacity of approximately 950 MBPD, depending on the type and mix of crude oil being transported[87]. - The Eagle Ford Crude Oil Pipeline System has a capacity to transport over 600 MBPD of crude oil and condensate[101]. Ethane and Propylene Export - Ethane loading volumes at the Morgan's Point Ethane Export Terminal averaged 213 MBPD, 198 MBPD, and 168 MBPD for the years ended December 31, 2024, 2023, and 2022, respectively[80]. - The Neches River Ethane/Propane Export Facility is expected to be completed during the third quarter of 2025 and first half of 2026 to expand ethane and propane export capabilities[81]. - Propylene production facilities have a total capacity of 117 MBPD, with an overall utilization rate of approximately 74.2% for the year ended December 31, 2024[128]. - Global demand for propylene is increasing, with PDH facilities capable of producing up to 1.65 billion pounds per year, or approximately 25 MBPD, of polymer grade propylene (PGP)[129]. Regulatory Environment - The company is subject to federal and state regulations regarding the disposal of hazardous and non-hazardous wastes, which may impose additional costs and operational restrictions[179]. - Under CERCLA, the company could incur liability for remediation costs related to hazardous substances, potentially affecting financial performance[180]. - The FERC has set the Index Level for pipeline rates at PPI plus 0.78% for the period from July 1, 2021, to June 30, 2026, which may impact future revenue[184]. - The company’s natural gas pipelines are regulated under the NGPA, and the rates charged must be fair and equitable, affecting profitability[188]. - The potential civil penalties for violations of FERC regulations could reach approximately $1.6 million per day per violation as of January 2025, posing a financial risk[190]. Competition - The company faces competition from independent processors and major integrated oil companies in the NGL market, impacting pricing and market share[200]. - Climate change regulations may increase operating costs and compliance burdens, affecting overall profitability and market demand for fossil fuels[197]. - The company’s operations may be impacted by the designation of habitats for endangered species, potentially leading to increased costs or operational restrictions[181]. - The company faces intense competition in the NGL and related product storage business from major integrated oil companies and other storage service providers, focusing on fees, pipeline connections, and operational dependability[201]. - In the natural gas gathering business, competition is based on reputation, efficiency, system reliability, and pricing arrangements, with key competitors including independent gas gatherers and major integrated energy companies[204]. Health and Safety - The company's Total Recordable Incident Rate (TRIR) for 2024 was 0.33, which is favorable compared to the midstream industry average over the last seven years, indicating a strong commitment to health and safety[214]. - Approximately 7,800 EPCO personnel are engaged in the company's business, with 14% being female and 33% being minorities, reflecting a commitment to workforce diversity[213]. Operational Challenges - The company’s operations along the Gulf Coast may be affected by seasonal weather events, impacting throughput volumes and natural gas storage levels during winter and summer months[211]. - The company’s construction of new assets is subject to various risks, including operational, regulatory, and environmental challenges, which may lead to delays and increased costs[221]. - The company’s growth strategy may be impacted by illiquid capital markets or increased competition for investment opportunities, potentially limiting future financial flexibility[221].

Group 1: Industry Overview - President Trump's declaration of a national energy emergency and freeze on federal funding for clean energy aims to boost the domestic oil and gas industry [1] - The push for fossil fuels has rekindled interest in oil stocks among investors, although uncertainties remain regarding tariffs and oil prices [2] Group 2: Chevron (CVX) - Chevron is positioned as a leading player in the U.S. oil industry, with a history dating back to 1879 and significant growth plans [3] - The company anticipates a compound annual growth rate of approximately 6% in production through 2026, expecting to generate $10 billion in incremental free cash flow (FCF) at a Brent crude price of $70 per barrel [4] - If Chevron's acquisition of Hess (HES) is completed, FCF could increase further, with the $53 billion all-stock deal expected to close soon [5] - Shareholders are likely to benefit from dividend growth and share-price appreciation, with Chevron having increased dividends for 37 consecutive years, offering a yield of 4.4% [6] Group 3: Occidental Petroleum (OXY) - Occidental Petroleum is highlighted as a value stock, with potential for recovery and growth, allowing investors to purchase around 10 shares for $500 [7] - Following the acquisition of CrownRock for $12 billion, Occidental's stock initially declined due to concerns over increased debt, with shares down about 19% year-over-year [8] - The company has shifted focus to debt reduction, achieving a target of $4.5 billion in debt reduction within five months of the acquisition [9] - Occidental plans to continue deleveraging while maintaining sustainable dividend growth, recently raising its quarterly dividend by 9% [10] - The company is also set to divest $1.2 billion in assets while investing up to $7.6 billion across various sectors in 2025 [10][11] Group 4: Enterprise Products Partners (EPD) - Enterprise Products Partners is recognized as a high-yield oil dividend stock, with a yield of 6.4% and strong cash-flow growth [13] - The company reported a record net income of $5.9 billion in 2024, with earnings per share (EPS) growing nearly 7% over 2023, and distributable cash flow (DCF) reaching $7.8 billion [14] - Enterprise Products has a robust history of dividend increases, having raised dividends for over 25 consecutive years, contributing to total returns [14] - The company has $7.6 billion in major projects under construction, with $6 billion expected to come online this year, positioning it for future growth [16]

Favorable oil prices are supporting exploration and production activities, leading to increased upstream operations. This is expected to drive higher demand for pipeline and storage assets, enhancing the outlook for the Zacks Oil and Gas - Pipeline MLP industry.These partnerships benefit from stable, fee-based revenues secured through long-term contracts with shippers. With a strong pipeline of growth projects, midstream companies are well-positioned to generate additional cash flows, reinforcing their stab ...