Fort Myers Florida Weekly

The Motley Fool Take

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Enterprise Products Partners (NYSE: EPD) has been an unstoppable dividend stock over the years, with its payout recently yielding a hefty 7.8%. One of the largest midstream pipeline companies in North America, it recently declared another dividend increase, something it has done for 23 consecutive years

Enterprise’s stable midstream assets include about 50,000 miles of pipelines; 14 billion cubic feet of natural gas storage capacity; and 260 million barrels of storage capacity for natural gas liquids (NGLs), crude oil, refined products and petrochemicals. They generate steady, contractually secured cash flow. The company’s financial profile is top-tier, featuring an investment-grade credit rating backed by low debt levels and a conservative dividend payout ratio.

The company has recently added even more fuel for future growth by agreeing to acquire Navitas Midstream Partners from a private equity fund for $3.25 billion in cash. The deal gives Enterprise entry into the energy-rich Midland Basin.

It’s likely that North America will eventually move away from fossil fuels, hurting Enterprise’s business, but that won’t happen anytime soon. Note that the company is a Master Limited Partnership (MLP), and those can require some special handling at tax time; read up on MLPs before investing. (The Motley Fool has recommended Enterprise Products Partners.) ¦

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