High-yielding dividend stocks are riskier. Many of them have cut their payments in the past due to weaker financial profiles.
However, I fully trust Enterprise Products Partners' (NYSE: EPD) 5.8%-yielding payout right now. Here are three reasons why I think it's safe.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Enterprise Products Partners operates an integrated footprint of critical energy infrastructure. The master limited partnership (MLP), an entity that sends a Schedule K-1 Federal tax form, has broad diversification across ******* et types (e.g., pipelines, processing plants, and export terminals), products (e.g., oil, natural gas, natural gas liquids, and petrochemicals), customers, and geography. Long-term, fee-based contracts underpin about 80% of its earnings, providing a very stable cash flow base. This combination of diversification and stability has helped cushion the impact of market downturns over the years.
Enterprise Products Partners generated a record $2.3 billion of operational distributable cash flow during the second quarter. That was enough to cover its high-yielding distribution by a very comfortable 1.9 times. This allowed the MLP to retain $1.1 billion in distributable cash flow during the quarter, which it used to invest in expansion projects, repurchase units, and maintain its balance sheet strength.
#products #flow #high
However, I fully trust Enterprise Products Partners' (NYSE: EPD) 5.8%-yielding payout right now. Here are three reasons why I think it's safe.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Enterprise Products Partners operates an integrated footprint of critical energy infrastructure. The master limited partnership (MLP), an entity that sends a Schedule K-1 Federal tax form, has broad diversification across ******* et types (e.g., pipelines, processing plants, and export terminals), products (e.g., oil, natural gas, natural gas liquids, and petrochemicals), customers, and geography. Long-term, fee-based contracts underpin about 80% of its earnings, providing a very stable cash flow base. This combination of diversification and stability has helped cushion the impact of market downturns over the years.
Enterprise Products Partners generated a record $2.3 billion of operational distributable cash flow during the second quarter. That was enough to cover its high-yielding distribution by a very comfortable 1.9 times. This allowed the MLP to retain $1.1 billion in distributable cash flow during the quarter, which it used to invest in expansion projects, repurchase units, and maintain its balance sheet strength.
#products #flow #high
5 days ago
