Enterprise Products Partners LP (EPD) ended the last trading session at $33.59 per unit, just 3% below its 52-week high of $34.63. Despite the stock nearing its peak, it remains relatively undervalued, trading at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) ratio of 10.60, which is lower than the broader industry average of 12.24. Image Source: Zacks Investment ResearchShould investors jump into the stock now? Before answering that, let's take a closer look at the midstream energy player's bus ...

Core Viewpoint - Trump's energy policies are expected to significantly benefit oil stocks, particularly those with disciplined growth strategies and strong financials [1][2][3] Group 1: Trump's Energy Plans - President Trump declared a "national energy emergency" and aims to boost U.S. oil and gas production while lowering energy prices through increased supply [1][2] - The focus on oil stocks has returned, but the potential for lower commodity prices poses a challenge for producers [2] Group 2: ExxonMobil - ExxonMobil is the largest oil producer in the U.S. and has made a significant acquisition of Pioneer Natural Resources for nearly $60 billion, which will more than double its production in the Permian Basin [4] - The company plans to invest approximately $140 billion in growth projects from 2025 to 2030, expecting $20 billion in incremental earnings and $30 billion in incremental cash flows by 2030 [5] - At a Brent Crude Oil price of $65 per barrel, ExxonMobil could generate nearly $165 billion in surplus cash flow by 2030, with a strong likelihood of returning cash to shareholders through dividends or share repurchases [6] - The Department of Energy has granted an export permit extension for the Golden Pass LNG terminal, which is expected to start operations later this year [7] - Overall, ExxonMobil's strong financials and growth plans position it well to benefit from Trump's energy initiatives [8] Group 3: Enterprise Products Partners - Enterprise Products Partners operates in the midstream sector, allowing it to benefit from increased drilling activities without being directly affected by crude oil prices [9][10] - The company has $7.5 billion in major projects under construction, with $6 billion expected to come online this year, which will enhance cash flows [11] - As capital spending is expected to decrease from 2026 onward, more cash could be allocated to shareholders, as Enterprise Products has a history of consistent dividend increases and share repurchases [12][13] - The company has experienced exceptional growth over the past five years and is well-positioned for continued success under Trump's administration, with a current dividend yield of 6.5% [14]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that help investors select stocks likely to outperform the market in the next 30 days, rated from A to F based on value, growth, and momentum characteristics [2][10] - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score assesses a company's financial strength and future outlook based on projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score focuses on trends in stock price and earnings outlook, utilizing factors like one-week price change and monthly earnings estimate changes [5] VGM Score - The VGM Score combines the three Style Scores to identify companies with the best value, growth forecasts, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary stock-rating model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988 [7][8] Stock to Watch: Enterprise Products Partners (EPD) - Enterprise Products Partners operates a midstream energy network and has achieved record volumes in natural gas processing and crude oil equivalent pipeline volumes, supported by new processing plants [12] - EPD holds a 2 (Buy) Zacks Rank with a VGM Score of B and a Momentum Style Score of A, with shares up 0.2% over the past four weeks [13] - Analysts have revised EPD's earnings estimate higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.05 to $2.90 per share [13]

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 ...