This energy stock could be a reasonably safe pick in 2026.In a market obsessed with artificial intelligence stocks and high-flying meme names, midstream oil and gas player Enterprise Products Partners (EPD 0.48%) has not received the attention it deserves.This oil and gas pipeline operator, which is structured as a master limited partnership (MLP), offers a distribution (dividend) yield of 6.2% and has increased its distributions for 28 consecutive years.Enterprise Products Partners also boasts strong finan ...

Core Viewpoint - Arsenal Digital Holdings, Inc. is taking proactive steps towards uplisting and enhancing capital commitments to support acquisitions and project development activities [1] Capital Markets Progress - The company is nearing completion of its pre-audit preparation, which is a significant milestone before engaging a PCAOB-registered audit firm in the upcoming weeks [1]

Core Thesis - Energy Transfer LP (ET) is viewed positively due to its undervaluation, strong dividend yield, and growth potential linked to rising energy demand and data center expansion [1][3][5] Company Overview - Energy Transfer LP operates as a midstream oil and natural gas pipeline and transmission services company, primarily generating revenue from volumes transported and stored through its infrastructure [2] Financial Metrics - As of December 2nd, ET's share price was $16.59, with trailing and forward P/E ratios of 13.46 and 10.87 respectively [1] - The fair value of ET is estimated to be between $21–$22, indicating approximately 25% undervaluation compared to peers, alongside a high current dividend yield of about 8% and a normal growth rate of 4–7% CAGR [3] Growth Drivers - The key growth driver for ET is natural gas, which is expected to remain central to energy demand over the next 2–5 years, with nuclear energy becoming more significant later [3] - ET is positioned to benefit from rising energy demand associated with AI and data center expansion, having secured partnerships with a Colorado-based data center and Fermi's gigawatt energy campus in Texas [4] Future Outlook - Planned expansions in Texas natural gas capacity and recent rate cuts are expected to enhance ET's growth trajectory, with modeling suggesting a potential share price of $30+ by 2028 [4] - Options markets appear undervalued, particularly long-dated LEAPS through 2027–2028, presenting opportunities for outsized returns [5] Investment Appeal - ET represents a compelling investment for both value-oriented and passive income investors due to minimal downside risk, recurring cash flows, and structural tailwinds from energy demand and data center expansion [5]

Core Viewpoint - Enterprise Products Partners L.P. (NYSE:EPD) is recognized as a strong investment opportunity in the energy infrastructure sector, despite facing some short-term operational challenges [2][4]. Group 1: Company Overview - Enterprise Products Partners L.P. is one of the largest midstream oil and gas companies in North America, operating pipelines that function like a toll system to transport energy products [2][3]. - The company has a significant role in connecting upstream production with downstream refining and chemical processing [2]. Group 2: Analyst Ratings and Price Target - Stifel has reaffirmed its Buy rating on EPD with a price target of $35, indicating confidence in the company's long-term prospects [3][4]. - The firm has adjusted its operational forecasts due to lower-than-expected utilization at propane dehydrogenation plants and a decline in crude oil export volumes [3]. Group 3: Recent Developments - EPD recently completed a $580 million acquisition of Midland gathering assets, which is seen as a strategic expansion of its midstream operations [3]. - On October 8, EPD declared a quarterly dividend of $0.545 per share, maintaining its long-standing record of increasing dividends for 27 consecutive years, resulting in a dividend yield of 7.08% as of October 14 [5].

Core Insights - Enterprise Products Partners L.P. (NYSE:EPD) is recognized as one of the best affordable dividend stocks to buy now, highlighting its strong position in the market [1][2] - The company operates as a midstream oil and gas operator, providing essential connections between upstream production and downstream refining and chemical processing [2][3] Company Overview - Enterprise Products Partners L.P. is one of the largest midstream operators in North America, functioning as a toll road for the energy industry [2] - The midstream sector is less reactive to commodity price fluctuations, ensuring consistent demand for the services provided by the company [3] Financial Performance - The company has a strong dividend track record, having raised its distributions annually for the past 27 years, supported by reliable cash flows [3] - With an investment-grade balance sheet and a distributable cash flow coverage ratio of 1.7 times the payout, there is potential for further dividend growth [4] - The current quarterly dividend is $0.545 per share, resulting in a dividend yield of 7.01% as of October 2 [4]