Enterprise Products Partners (EPD -1.73%) currently yields 6.7%. The master limited partnership (MLP), which sends investors a Schedule K-1 Federal Tax Form each year, backs that payout with a very stable cash flow profile and strong balance sheet. The midstream energy company's integrated network of pipelines, processing plants, storage terminals, and export facilities generates predictable cash flow backed primarily by long-term, fixed-rate contracts and government-regulated rate structures. The company p ...

Core Viewpoint - Enbridge Inc. reported its first-quarter 2025 earnings results, which are likely to leave investors relatively satisfied [1] Financial Performance - The earnings results indicate a positive outlook for the company, contributing to investor confidence [1] Investment Strategy - The focus is on generating a 7%+ income yield by investing in a portfolio of energy stocks while minimizing the risk of principal loss [1]

There are three types of dividend stocks: those that don't change their dividend payments, those that have cut or eliminated their payouts, and those that initiate and grow their dividends. That last of those groups has significantly outperformed other dividend stocks over the long term: | Dividend Policy | | Returns | | --- | --- | --- | | Dividend growers and | 10.2% | | | initiators | | | | No change in dividend policy | 6.8% | | | Dividend cutters and | (0.9%) | | | eliminators | | | Given the returns d ...

Core Investment Thesis - Enbridge offers a high dividend yield of 6.5%, significantly above the S&P 500's 1.3% yield, making it an attractive income investment opportunity [1] - The company has a substantial backlog of expansion projects, which is expected to drive growth and total returns for investors in the coming years [1][2] Growth Prospects - Enbridge has secured $20 billion in expansion projects, including an additional $1.7 billion in recent investments, enhancing its long-term growth outlook [2] - The company anticipates placing $15.9 billion of projects into service by 2027, with additional projects expected to come online in 2028 and 2029 [2] Financial Performance Expectations - Enbridge expects adjusted EBITDA growth of 7% to 9% through 2026, followed by 5% annual growth thereafter [3] - The company projects 3% annual growth in distributable cash flow per share through 2026, increasing to 5% beyond next year, supporting annual dividend increases of up to 3% through next year and potentially 5% after 2026 [3] Market Opportunities - Enbridge sees significant growth opportunities across its franchises, with an estimated CA$50 billion ($34.5 billion) in new growth opportunities through 2030 [4] - The largest growth opportunity is in gas transmission, with $15.9 billion in projects aimed at increasing gas supplies in the U.S. Gulf Coast region and supporting growing industrial and export demand [5] Segment-Specific Expansion - Enbridge is pursuing $6.9 billion in liquids pipeline projects, $6.2 billion in gas distribution and storage, and $4.8 billion in renewable power projects [6] - The company is focusing on lower carbon opportunities within its liquids pipeline segment, including carbon capture and storage initiatives [6] Capital Investments - Enbridge plans to invest up to $1.4 billion in its Mainline oil pipeline system through 2028 to enhance reliability and efficiency [7] - Additional expansions include a $276 million investment in the T-North Pipeline and a $69 million expansion of the T15 project, both expected to be completed by 2028 [7] Total Return Potential - The combination of a high dividend yield and solid growth prospects positions Enbridge to achieve total annual returns of 10% to 12% by growing cash flow per share in the 3% to 5% range [9]