Enterprise Products Partners (EPD): How Safe is this High-Yield MLPs Distribution? The best way of valuing an MLP is based not on earnings but on cash flow and yield, since these are the most crucial metrics that directly apply to the very reason that investors own these securities. Fortunately Enterprises massive scale and best-in-the-industry BBB+ credit rating means that it isnt likely to be priced out of the debt markets in the coming years. At the end of the day, even conservative midstream MLPs such as Enterprise Products Partners are at the mercy of capital markets and commodity prices, if for no other reason that demand for their growth projects require higher oil & gas prices. This article will look at EDP's dividend history, what the future dividend policy may be, and compare it to other competitors' dividends. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. This brings me to the second major risk for Enterprise, rising interest rates. Is Dividend Investing Good for Millennials? Com Units/Enterprise Products Partners L.P. (NYSE:EPD) has paid dividends since 1998, has a current dividend yield of 8.0525884628% and has increased its dividends for 0 successive years. Touch device users, explore by touch or with swipe gestures. You raised a great point about diversification it prevents us from having to be right on all of our investments. That would likely mean investors would be able to buy long-term Treasuries (risk-free bonds) with yields of 5% to 6%. View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. Visit ourDividend Calendar: Our partner, Quotemedia, provides the upcoming ex-dividend dates for the next month (Other OTC & OTCBB stocks are not included in coverage for Dividend History). Longer term, who know how this will affect this company or others. By creating a free account, you agree to our, Mullen Automotive - Short Squeeze is Possible - Not Inevitable, PepsiCo or Coke? EPD's current dividend yield is eight basis points higher than its own 4-year average dividend yield of about 7.45%. * Dividend amounts are adjusted for stock splits when applicable. So the current yield is about 9% higher than its historic norm. Enterprise primarily makes most of its money from fees it charges E&P customers for its services. . EPD EPD DIVIDEND HISTORY EPD Dividend History EX-DIVIDEND DATE 10/28/2022 DIVIDEND YIELD 7.65% ANNUAL DIVIDEND $1.90 P/E RATIO 10.71 Back to EPD Overview The Dividend History. List: . The long-term growth rate of MLPs has come into question for some of these reasons, resulting in the sharp sell-off that has taken place since late 2014. Members of Turnaround Stock Advisory get exclusive ideas and guidance to navigate any climate. The key to Enterprises success mainly has to do with its industry-leading, conservative management team. That helps keep its access to cheap credit plentiful, such as the current $3.5 billion in liquidity that ensures the MLP has enough capital to bring online its various growth projects, grow its DCF, and keep the payout highly secure in the coming years. News, reports, and commentary about active ETFs. Learn more about planning and maintaining a happy, financially secure retirement. However, much of the companys future ultimately hinges on the success of its growth projects and how the domestic energy landscape evolves. Blend yield & returns in the Energy sector. The next dividend for EPD was announced to be 0.49. In addition, unlike other pipeline operators such as Kinder Morgan (KMI), which went debt crazy during the boom years of 2010 through 2014 (when oil was about $100 per barrel), Enterprises management has always been far more conservative in its growth approach. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service. HOUSTON, April 07, 2022--(BUSINESS WIRE)--Enterprise Products Partners L.P. (NYSE: EPD) ("Enterprise") announced today that the board of directors of its general partner declared the quarterly cash distribution paid to limited partners holding Enterprise common units with respect to the first quarter of 2022 of $0.465 per unit, or $1.86 per unit on an annualized basis. EPD | Complete Enterprise Products Partners L.P. stock news by MarketWatch. The monthly returns are then compounded to arrive at the annual return. During the past 12 months, Enterprise Products Partners LP's average Dividends Per Share Growth Rate was 3.30% per year. This creates a massive growth runway that should allow Enterprise Products Partners to realistically continue growing its DCF and its highly secure payout by around 5% over the next decade. Visit Performance Disclosure for information about the performance numbers displayed above. Besides, the dividend rate for MMP is a rather anemic 4.8%, for the risk one is taking, and SEP prices seem more volatile. Get short term trading ideas from the MarketBeat Idea Engine. For example, over the past 13 years Enterprises yield has ranged from 3.42% to 11.67%, with a median of 5.77%. Dividend Aristocrats (>25 yrs S&P500 stocks) Dividend Champions (>25 yrs) Dividend Achievers (>10 yr NASDAQ stocks) Dividend Challengers (5-9 yrs) Dividend Contenders (10-24 yrs) Dividend Kings (>50 yrs) Picks Model Portfolios Best High Dividend Stocks Best Dividend Protection Stocks Best Dividend Growth Stocks Best Dividend Stocks See what a Digrin managed dividend portfolio looks like. Dividend Safety Scores range from 0 to 100, and conservative dividend investors should stick with firms that score at least 60. The annual dividend for EPD shares is $1.90. I just try to stay out of the way! Considering its 24-year history of raising the distribution, its conservative management, and its commitment to raising distributions, EPD looks to be a stellar choice for long-term dividend-seeking investors. All rights reserved. Disciplined capital management has kept debt low relative to other pipelines and inside ownership is over 36%. Create your Watchlist to save your favorite quotes on Nasdaq.com. Enter your email address below to receive the latest headlines and analysts' recommendations for your stocks with our free daily email newsletter. Natural gas liquids transportation and processing provides the majority of the MLPs gross margins, which Enterprise is doubling down on because the shale gas boom has resulted in such an abundance of NGLs (which are used to make plastics) that there is a massive and fast growing export market for refined NGL products such as Ethylene and Propylene in Asia and Europe. Dividend history information is presently unavailable for this company. 2023 Stock Analysis. During the past 3 years, the average Dividends Per Share Growth Rate was 1.60% per year. Dividends are common dividends paid per share, reported as of the ex-dividend date. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. This is why EPD held up so well in 2020. A cash dividend payment of $0.445 per share is scheduled to be paid . That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. The first two have seen big declines over the past month. This in turn would mean that Enterprise, with its current 6.4% yield, would be far less attractive. 2021-07-09 Enterprise Declares Quarterly Distribution. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F. As an investor, you want to buy stocks with the highest probability of success. Enterprise Products Partners (NYSE:EPD) is one of the largest pipelines in the US, with a more than 50,000-mile footprint covering the United States from Wyoming to New York. Services include: natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage and marine terminals; crude oil gathering, transportation, storage and marine terminals; petrochemical and refined products transportation, storage and marine terminals; and a marine transportation business that operates on key U.S. inland and intracoastal waterway systems. In fact, just last week Baker Hughes (BHI) reported the number of rigs drilling in the U.S. rose by 20, the largest weekly increase in two years. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. Enterprise would be throwing off substantial free cash flow if it wasnt investing for future growth, but instead its reported free cash flow year-to-date is slightly above zero. 97.30% based on next year's estimates. Its still a real risk what if the project fails to deliver its expected return with the slump in oil / gas prices? Portfolio management news, reports, video and more. Oil has been at this level or lower before 2004-5 and except for the early 1980s. But we have to remember that as an MLP, Enterprise Products Partners pays out the vast majority of its cash flow as distributions and thus must periodically turn to equity markets to raise growth capital. Dividend capture strategy is based on EPDs historical data. Copy and paste multiple symbols separated by spaces. If you found this article to be of value, please scroll up and click the "Follow" button next to my name. Build conviction from in-depth coverage of the best dividend stocks. (function() { Step 1: Buy IVR shares 1 day before the ex-dividend date purchase date (estimate) Apr 26, 2023 Upcoming Ex-dividend date Apr 27, 2023 Step 2: SEll IVR shares when price recovers sell date (estimate) May 13, 2023 Avg Price Recovery 15.3 Days Avg yield on cost 3.56% See Full History Maximize yield on cost. Enterprise Products Partners pays quarterly dividends to shareholders. Enterprise Products Partners is North Americas third largest midstream operator, with nearly 50,000 miles of natural gas, oil, natural gas liquid (NGL), and refined product pipelines. Good to see that you differentiated between growth capital spending and maintenance or sustaining capital spending. window.mc4wp.listeners.push({ When autocomplete results are available use up and down arrows to review and enter to select. CONTACT US: (440) 617-1200; Home; Contact Us; why are flights so expensive right now 2022 Menu Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank, Industry: Oil and Gas - Production Pipeline - MLB. See rankings and related performance below. This explains why it has the highest credit rating of any MLP (actually its tied with Magellan Midstream Partners (MMP)). When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. Everything Dividend Investors Need to Know About MLPs, Transportadora de Gas del Sur - Ordinary Shares - Class B, AltaGas Ltd - FXDFR PRF PERPETUAL CAD 25 - Ser I, Critical Facts You Need to Know About Preferred Stocks, Earn More With Dividend Stocks Than With Annuities for Your Retirement. Our Dividend Growth Score answers the question, How fast is the dividend likely to grow? It considers many of the same fundamental factors as the Safety Score but places more weight on growth-centric metrics like sales and earnings growth and payout ratios. We like that. When was Enterprise Products Partners's most recent dividend payment? Frontline's previous ex-dividend date was on 2020-09-10. Enterprise Products Partners is currently trading at 13.9 times operating cash flow, which is a bit higher than its historical norm of 10.4. Western countries are now scrambling for stable, renewable energy. Dividends Valuation Growth Profitability Momentum Peers Options Charting Dividend Scorecard Dividend Yield Dividend Growth Dividend Safety Dividend History Dividend Estimates Dividend. Tritium Is the Largest DC EV Charger Maker Youve Never Heard Of. It has approved a $0.22 quarterly dividend for the second quarter, payable on July 30.. That puts the current rig count up nearly 50% off its lows and might signal that U.S. shale producers, eager for additional cash flow to service their debts, might end up stalling the recovery at much lower prices than otherwise would have occurred. Recommendation not provided. By the way, in following the prices of these stocks today, while also following the price of oil, I noted the stock prices were in lock step with oil prices, right down to the minute, at least during the last trading hour or so I did this study. The dividend is paid every three months and the last ex-dividend date was Oct 28, 2022. Dividend Yield 7.30% Annual Dividend $1.88 Ex-Dividend Date Oct 28, 2022 Payout Frequency Quarterly Payout Ratio 80.00% Dividend Growth 4.44% Dividend History Since that point, the dividend has increased from $0.125 . Vale S.A. has a dividend yield of 7.68% and paid 7.29131 BRL or $1.38 USD per share in the past year. Find the latest Financials data for Enterprise Products Partners L.P. Common Stock (EPD) at Nasdaq.com.
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