Enterprise Products Partners L.P.(EPD)
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This Magnificent 6.5%-Yielding Dividend Stock Is Giving Its Investors Another Raise
The Motley Fool· 2025-01-09 10:02
Core Viewpoint - Enterprise Products Partners has demonstrated strong performance in cash distribution to investors, extending its distribution growth streak to 26 years and returning over $55 billion in cash through distributions and unit repurchases [1][2]. Financial Performance - The MLP has continued its distribution growth in 2025, with a recent payment reflecting a 1.9% increase from the previous quarter and a 3.9% increase year-over-year, resulting in a current yield of 6.5% [2]. - In Q3, the company generated $2 billion in distributable cash flow, a 5% increase from the previous year, covering its distribution payment by 1.7 times and retaining $808 million in cash [3]. Balance Sheet Strength - Enterprise Products Partners holds the highest bond rating in the midstream sector at A-/A3, supported by a low leverage ratio of 3.0x and primarily low-cost, fixed-rate debt [4]. Capital Allocation and Growth Investments - The company repurchased $219 million of its units last year, utilizing 57% of its $2 billion buyback program, and planned to invest $3.5 billion to $3.75 billion in growth capital projects [5]. - The acquisition of Pinon Midstream for $950 million is expected to enhance cash flow, adding $0.03 per unit in 2025 [6]. Future Growth Prospects - Enterprise Products Partners has completed several organic capital projects that will contribute to cash flow in 2025, including the expansion of the Texas Western Products System and new natural gas processing plants [7]. - The company plans to invest $3.5 billion to $4 billion in major capital projects this year, including additional natural gas processing plants and pipeline expansions, expected to provide incremental cash flow growth into 2026 [8]. - Additional expansion projects are scheduled for 2026, with an expected investment of $2 billion to $2.5 billion [9]. Strategic Initiatives - The company is exploring further expansion opportunities, including a carbon dioxide transportation network and an offshore oil port project, which could enhance growth prospects beyond 2026 [10]. - Financial flexibility allows the company to pursue accretive acquisitions, further enhancing growth potential [11]. Capacity Expansion - Pinon Midstream is working on increasing its treating facilities' capacity from 270 million cubic feet per day (MMcf/d) to 450 MMcf/d, with potential future expansion to 750 MMcf/d [12]. Income Stability - The steady income stream from Enterprise Products Partners is expected to continue rising due to its strong financial profile and visible growth prospects, making it an attractive option for investors seeking a reliable income stream [13].
Want $300 in Super-Safe Dividend Income in 2025? Invest $3,730 Into the Following 3 Ultra-High-Yield Stocks.
The Motley Fool· 2024-12-30 10:21
Three supercharged dividend stocks -- sporting an average yield of 8.05% -- have the necessary competitive advantages to make income seekers richer in 2025 (and beyond).One of the greatest aspects of Wall Street is that there are countless ways to make money. With thousands of publicly traded companies and exchange-traded funds (ETFs) to choose from, there's likely to be one or more securities that can help you reach your financial goal. But among the variety of ways investors can become wealthier on Wall S ...
Enterprise Products Partners (EPD) Suffers a Larger Drop Than the General Market: Key Insights
ZACKS· 2024-12-26 23:55
The latest trading session saw Enterprise Products Partners (EPD) ending at $31.14, denoting a -1.11% adjustment from its last day's close. This change lagged the S&P 500's 0.04% loss on the day. On the other hand, the Dow registered a gain of 0.07%, and the technology-centric Nasdaq decreased by 0.05%.Shares of the provider of midstream energy services witnessed a loss of 6.42% over the previous month, beating the performance of the Oils-Energy sector with its loss of 8.03% and underperforming the S&P 500' ...
Stocking Stuffers for Income Investors: 3 Ultra-High-Yield Dividend Stocks to Buy Before the End of 2024
The Motley Fool· 2024-12-23 10:50
Enterprise Products Partners (EPD) - Enterprise Products Partners operates over 50,000 miles of pipelines transporting natural gas liquids, natural gas, crude oil, and petrochemicals across the US [2] - The company owns midstream energy assets including storage facilities holding over 300 million barrels of liquids and 42 natural gas processing trains [2] - Enterprise Products Partners has an A credit rating, reflecting high credit quality and low default risk [3] - The company has consistently generated double-digit percentage returns on invested capital (ROIC) over the last two decades [3] - Enterprise Products Partners offers a forward distribution yield of 6.79% and has increased its distribution for 26 consecutive years [8] - The company is expected to benefit from favorable policies likely to be implemented by the incoming Trump administration [9] - Shares are trading at 10.5 times forward earnings, indicating a relatively cheap valuation [9] Pfizer (PFE) - Pfizer's COVID-19 revenue has significantly declined, and the company faces patent exclusivity losses for multiple blockbuster drugs in the coming years [4] - The company has a strong forward dividend yield of 6.53% and is expected to boost its dividend payout next year [5] - Pfizer is trading at below 8.7 times forward earnings, suggesting an attractive valuation [5] - The company is less dependent on COVID-19 product sales now, with newer products like the respiratory syncytial virus vaccine Abrysvo driving growth [11] - Recent acquisitions, including drugs like Adcetris and Padcev, are generating significant revenue [11] United Parcel Service (UPS) - UPS returned to revenue and profit growth in the third quarter of 2024, moving past the overhang of front-loaded costs associated with its Teamsters Union deal [6] - The company offers an attractive forward dividend yield of 5.19% and has increased its dividend for 15 consecutive years [13] - UPS is the world's largest package delivery company, delivering an average of 22.3 million packages and documents each day [12] - The company is focused on improving profitability by expanding into healthcare logistics and serving small-to-medium-sized businesses [15]
3 Dividend Stocks Up 8%, 16%, and 17% So Far in 2024 to Buy in December
The Motley Fool· 2024-12-22 12:45
Investing in equal parts of these dividend stocks produces an average yield of 4%.2024 is almost over, but there's still time left in the year to identify quality companies that are worth buying now. Some folks may be looking for high-octane growth stocks with room to run, whereas others may be in search of companies that can pay them dividend income no matter what the stock market is doing.Dividend stocks offer a way to participate in the market without all of the gains depending on the stock price going u ...
4 No-Brainer Pipeline Stocks to Buy With $1,000 Right Now
The Motley Fool· 2024-12-19 09:36
Core Viewpoint - The rise in energy consumption, driven by the increased use of AI applications, is leading to a greater demand for natural gas, benefiting pipeline operators in the sector [1][2]. Group 1: Pipeline Operators - Williams Companies is a leader in natural gas infrastructure, owning the Transco pipeline, which connects natural gas from Appalachia to energy demand centers in the Southeast and Gulf Coast [3][4]. - Kinder Morgan operates the largest natural gas pipeline system in the U.S., transporting about 40% of the country's natural gas, with 90% of its contracts being "take or pay" [6][7]. - Enterprise Products Partners is ramping up growth projects in response to increasing demand, with a projected capital expenditure increase from $1.6 billion in 2022 to between $3.5 billion and $4 billion in the following years [10][12]. - Energy Transfer has a strong position in the Permian Basin and is seeing increased power demand from AI and data centers, with a new $2.7 billion pipeline project planned to support this growth [14][15]. Group 2: Financial Projections - Williams Companies expects its 2025 EBITDA to be between $7.2 billion and $7.6 billion, with a compound annual growth rate of over 7% for the following five years [5]. - Kinder Morgan anticipates a 4% growth in adjusted EBITDA and an 8% increase in adjusted EPS for 2025 [9]. - Enterprise Products Partners has a forward yield of 6.6% and has consistently grown its distribution for 26 years [13]. - Energy Transfer projects a distribution increase of 3% to 5% annually, with a forward yield of 6.8% and an enterprise value-to-EBITDA multiple of 8.7 times, making it an attractive investment option [16].
3 Oil & Gas Pipeline Stocks Likely to Thrive Despite Industry Woes
ZACKS· 2024-12-04 15:21
While the midstream energy sector is less affected by oil and gas price swings, the Zacks Oil and Gas - Production & Pipelines industry still faces uncertainties. Conservative capital spending by upstream companies is slowing oil and gas production growth, which could reduce demand for midstream assets.Despite these challenges, pipeline operators are in a stronger position than upstream and downstream firms. They benefit from steady, fee-based revenues through long-term contracts with shippers. Key industry ...
EPD Stock's Valuation Looks Attractive: Is it the Right Time to Buy?
ZACKS· 2024-11-29 20:46
Core Insights - Enterprise Products Partners LP (EPD) is currently considered undervalued, trading at a trailing 12-month EV/EBITDA of 10.71x, below the industry average of 12.43x [2] - The stock carries a Zacks Rank 3 (Hold) at present, indicating a neutral outlook [1][18] Valuation and Financial Performance - EPD's discounted valuation presents a potentially lucrative opportunity, but further analysis is needed to determine if the lower valuation is justified based on fundamentals and market conditions [4] - The partnership has achieved 26 consecutive years of distribution hikes, with a current distribution yield of 6.2%, surpassing the industry average of 5.6% [7] Asset Portfolio and Growth Prospects - EPD boasts a diversified asset portfolio, including over 50,000 miles of pipelines and a storage capacity of 300 million barrels, which supports stable fee-based revenues [5] - The company has a $7 billion development pipeline and is set to generate additional fee-based earnings from $6.9 billion worth of major capital projects currently in service or under construction [6] Strategic Initiatives - Recent strategic acquisitions, such as Piñon Midstream, have enhanced EPD's processing capabilities and strengthened its NGL value chain [10] - Key growth projects, including the Bahia pipeline and Neches River NGL export terminal, are expected to drive significant cash flow growth starting in 2025 [10] Market Performance and Challenges - Year-to-date, EPD's units have gained 37.4%, underperforming the industry's composite stock growth of 46.7% [12] - Delays in key projects, such as the Bahia pipeline, and proposed regulatory changes may pose risks to operations [15] - Elevated growth capital expenditures projected between $3.5 billion and $4 billion in 2025 could strain resources and reduce short-term flexibility for shareholder returns [16]
Growing EPD Business Supports ABT Stock Amid Macroeconomic Issues
ZACKS· 2024-11-29 16:15
Abbott’s (ABT) diversified business portfolio is well-positioned to drive continued momentum in 2024. Yet, the business environment continues to remain challenging globally. The stock carries a Zacks Rank #3 (Hold).Factors Driving ABT SharesWithin Abbott’s Established Pharmaceuticals Division (EPD) business, the company is also strategically progressing with its advancement in biosimilars. Abbott, leveraging on its leading presence in emerging markets, is enjoying a unique opportunity to scale a licensing m ...
Enterprise Products (EPD) Up 15% Since Last Earnings Report: Can It Continue?
ZACKS· 2024-11-28 17:36
A month has gone by since the last earnings report for Enterprise Products Partners (EPD) . Shares have added about 15% 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 Q3 Earnings Lag E ...