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Got $200 to Invest? 2 Elite Ultra-High-Yield Dividend Stocks to Buy for Income and Never Look Back.
EPDEnterprise Products Partners L.P.(EPD) The Motley Fool·2025-03-29 13:52

Core Insights - Companies like Enterprise Products Partners and NNN REIT are highlighted for their ability to provide high dividend yields and consistent payout increases, making them attractive for income-focused investors [2][12] Enterprise Products Partners (EPD) - EPD currently offers a dividend yield of 6.3%, translating to 6.30ofannualpassiveincomeforevery6.30 of annual passive income for every 100 invested, with a history of 26 consecutive years of payout increases [3][12] - The company operates a diversified energy midstream infrastructure portfolio, generating stable cash flows supported by long-term contracts, covering its distribution comfortably at a ratio of 1.7 times [4][12] - EPD has 7.6billioninmajorprojectsunderconstruction,whichareexpectedtoenhancecashflowinthecomingyears,alongsideongoingdevelopmentprojectsforlongtermgrowth[5]Thecompanymaintainsastrongbalancesheetandthehighestcreditratinginthemidstreamsector,allowingforstrategicacquisitions,suchasthe7.6 billion in major projects under construction, which are expected to enhance cash flow in the coming years, alongside ongoing development projects for long-term growth [5] - The company maintains a strong balance sheet and the highest credit rating in the midstream sector, allowing for strategic acquisitions, such as the 950 million purchase of Pinon Midstream, which is expected to boost cash flow per share [6][12] - The combination of organic growth and acquisitions positions EPD to continue increasing its distributions [7] NNN REIT - NNN REIT currently has a dividend yield of 5.5%, providing 5.50ofincomeforevery5.50 of income for every 100 invested, with a 35-year streak of increasing dividends [8][12] - The REIT focuses on single-tenant retail properties under net lease agreements, which provide stable cash flow as tenants cover most operating expenses [9] - NNN REIT conservatively pays out less than 70% of its core funds from operations in dividends, allowing for significant cash retention for further investments, with an expected free cash flow of about $200 million in 2025 [10] - The REIT actively partners with retailers to expand their operations, often acquiring properties through sale-leaseback transactions, which has accounted for over 70% of its investment volume since 2007 [11] - The growing portfolio and strategic capital recycling should enable NNN REIT to continue increasing its high-yielding payouts [11][12]