- How Investors May Respond To Enterprise Products Partners (EPD) Strong Q1 Results And Permian Expansion Push
May 13, 2026
Enterprise Products Partners recently reported strong first-quarter 2026 results, with net income attributable to common unitholders rising to US$1.48 billion alongside higher earnings per unit, while advancing new gas processing, pipeline, and export projects in the Permian Basin and beyond. The partnership’s ongoing expansion projects, reduced PDH downtime, and continued commitment to both cash distributions and unit buybacks highlight a business increasingly focused on turning its growing asset base into more stable cash generation for unitholders. We’ll now examine how the stronger Q1 performance and new Permian gas processing capacity influence Enterprise Products Partners’ investment narrative.
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Enterprise Products Partners Investment Narrative Recap
To own Enterprise Products Partners, you need to believe its expanding midstream footprint can support consistent cash generation while managing commodity and volume volatility. The strong Q1 2026 results and higher guidance support the near term catalyst of new Permian gas processing and export capacity, but do not remove the key risk that changing Permian producer activity or commodity spreads could temper throughput and earnings.
The Q1 update underlined this balance: Enterprise completed two new Permian gas processing plants and continued to ramp pipeline and export projects, while also reporting higher net income of US$1.48 billion and maintaining distribution growth. At the same time, Truist’s unchanged Hold rating, despite lifting its price recommendation to US$40, reflects how commodity price swings and narrowing regional spreads can quickly influence how much of that new capacity translates into incremental earnings.
Yet even with stronger Q1 numbers and new projects, investors should be aware that volatility in Permian producer activity and regional spreads could...
Read the full narrative on Enterprise Products Partners (it's free!)
Enterprise Products Partners' narrative projects $61.1 billion revenue and $7.2 billion earnings by 2029. This requires 5.1% yearly revenue growth and about a $1.4 billion earnings increase from $5.8 billion today.
Uncover how Enterprise Products Partners' forecasts yield a $40.05 fair value, a 5% upside to its current price.
Exploring Other PerspectivesEPD 1-Year Stock Price Chart
Six members of the Simply Wall St Community currently value Enterprise Products Partners between US$34.42 and US$92.22 per unit, showing how far opinions can stretch. Against that backdrop, the risk that commodity price swings and narrowing Permian spreads could limit upside in coming quarters is a key factor you should weigh as you compare these different views.
Story Continues
Explore 6 other fair value estimates on Enterprise Products Partners - why the stock might be worth 10% less than the current price!
Decide For Yourself
Don't just follow the ticker - dig into the data and build a conviction that's truly your own.
A great starting point for your Enterprise Products Partners research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision. Our free Enterprise Products Partners research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Enterprise Products Partners' overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include EPD.
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- The 3-Bucket Income Portfolio: How to Build $5,000 a Month From Dividends, Bonds, and REITs
May 12, 2026
Quick Read
Schwab U.S. Dividend Equity ETF (SCHD), Enterprise Products Partners (EPD), Verizon Communications (VZ), and Realty Income (O) generate $5,192 monthly income. A diversified $1.1 million portfolio across dividend stocks, bonds, and REITs targets a 5.7% blended yield for early retirement. The analyst who called NVIDIA in 2010 just named his top 10 stocks and Enterprise Products Partners wasn't one of them. Get them here FREE.
Pulling $5,000 a month from a portfolio is a common benchmark for early retirees who want a middle-class income floor without relying on full-time work. It can help cover property taxes, insurance, healthcare premiums, groceries, utilities, and the basics of a comfortable middle-class life in many parts of the country. Building it without leaning on a single asset class that can fail you in the wrong market is the harder problem.
The three-bucket approach spreads $1,100,000 across dividend equities, bonds, and REITs. Each bucket pays cash. Each one reacts differently when stocks fall, rates rise, or inflation jumps. Blended together, they target a 5.7% yield and produce roughly $62,303 a year, or $5,192 a month.
Dividend bucket: $550,000 doing the heavy lifting
Half the capital sits in four dividend payers chosen for different jobs. $137,500 goes into Schwab U.S. Dividend Equity ETF (NASDAQ:SCHD) at a typical 3.4% yield, generating about $4,675 a year. SCHD has paid quarterly dividends since 2011 and is up 26% over the past year.
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The largest sleeve, $220,000, goes to JPMorgan Equity Premium Income ETF (JEPI) at a typical 8.4% distribution yield for about $18,480 a year. The covered-call strategy holds blue-chip names like Johnson & Johnson, AbbVie, and Walmart at a 0.35% expense ratio.
Then $110,000 goes to Enterprise Products Partners (NYSE:EPD) at 5.9% producing about $6,490 a year. The midstream MLP just raised its quarterly distribution to $0.55, marking 27 consecutive years of payout growth. The final $82,500 sits in Verizon Communications (NYSE:VZ) at 6.1%, paying about $5,033 a year. Verizon's quarterly dividend is now $0.7075, up from $0.6775 a year ago. Bucket total: roughly $34,678.
Bond bucket: $330,000 for ballast
Bonds anchor the portfolio when equities sell off. $165,000 in Vanguard Intermediate-Term Corporate Bond ETF (VCIT) at a typical 4.7% yield generates about $7,755 a year. Another $165,000 in Vanguard Emerging Markets Government Bond ETF (VWOB) at a typical 5.9% yield adds about $9,735. With the 10-year Treasury near 4.4% and the Fed funds upper bound at 3.75%, both spreads remain workable. Bucket total: roughly $17,490.
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REIT bucket: $220,000 for inflation defense
The third bucket pairs a single-name income workhorse with a broad real estate ETF. $132,000 in Realty Income (NYSE:O) at 5.1% produces $6,772 in monthly checks. The net-lease REIT just declared its 113th consecutive quarterly dividend increase, with monthly payouts at $0.2705 and occupancy at 99% across 15,542 properties. The remaining $88,000 in Vanguard Real Estate ETF (VNQ) at 4.0% spreads exposure across data centers, towers, and industrial real estate, generating $3,494. Bucket total: $10,265.
The reason three beats one
The structural advantage is correlation. In a stock market crash, the dividend bucket falls while Treasuries typically rally on flight-to-safety flows, stabilizing total portfolio income. In a rate-spike environment, bonds drop, while high-quality dividend payers like Verizon and Realty Income usually hold their cash distributions. When inflation surges, REIT rents and MLP fee escalators reset higher while bonds lag. No single environment damages all three buckets at once.
Yield mix also matters for compounding. SCHD's roughly 3.4% yield grows faster over time than JEPI's 8.4%, which caps upside through covered calls. Realty Income's monthly raises compound quietly. Pairing growth-leaning yield with high-current-yield satellites delivers $5,192 monthly today and meaningful raises across the next decade.
Three moves to make this week
Map your real spending. Pull twelve months of bank and credit card statements. If your actual outflow runs below $5,000 a month, you need less capital than the $1.1 million baseline at the same 5.66% blended yield. A free planner from SmartAsset can match you with a fiduciary if the modeling gets complex. Stress-test the bond bucket against rates. With the Fed funds rate at 3.75% and held steady since late last year, model what happens to VCIT and VWOB if the 10-year moves 100 basis points either way. Pick the JEPI weight before funding the account. The 40% allocation drives $18,392 of bucket-one income, while anchoring the sleeve to a covered-call strategy that gives up upside in roaring markets. A smaller JEPI weight with more SCHD trades current cash for long-term growth.
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- Inflation Is Coming: 5 High-Yielding Stocks in Sectors That Will Thrive
May 12, 2026
You don't need to be an economist to determine that the path of least resistance for inflation will be higher as 2026 rolls on. While energy prices are the biggest determining factor, we have seen grocery prices, especially in the meat department, remain elevated for months, and electricity costs could rise as more data centers are built and come online. The bottom line is that energy prices touch everything, and while they likely won't stay above $100 when the Iran conflict is resolved, they will remain higher than previously anticipated for 2026.
Quick Read
Inflation could be poised to rise as oil prices remain elevated. Five sectors have typically thrived during periods of inflation and likely will do so again. Five high-yielding stocks reside in the “inflation-resistant” sectors, and all pay dependable dividends for growth and income investors. The analyst who called NVIDIA in 2010 just named his top 10 stocks and Bunge Global wasn't one of them. Get them here FREE.
One thing is for sure: history shows that five sectors tend to outperform during inflationary periods, and all offer some outstanding companies to invest in now. We found five stocks, one in each sector, and all are rated Buy at the top Wall Street companies we cover here at 24/7 Wall St.
The analyst who called NVIDIA in 2010 just named his top 10 stocks and Bunge Global wasn't one of them.Get them here FREE.
Here are the five sectors that typically do better during inflationary times:
Energy Materials/Commodities Real Estate Financials Consumer Staples
Obviously, the energy sector exploded higher at the outset of the conflict with Iran, but there are still outstanding opportunities. We screened all five sectors and found five outstanding companies, one in each sector that pays big, reliable dividends and should do well as 2026 progresses and prices stay elevated. Hopefully, the economy will remain strong enough that inflation doesn't turn into a period of stagflation, a term that describes a stagnant economy with inflation.
Energy: Enterprise Products Partners
This top midstream giant is an American midstream natural gas and crude oil pipeline company headquartered in Houston, Texas. Enterprise Products Partners (NYSE: EPD) is one of the most extensive publicly traded energy partnerships, paying a very reliable 5.89% dividend.
The company's debt-to-EBITDA ratio ranges from 3.1x to 3.4x, which is moderate for a midstream energy company, and its interest coverage ratio is 5x. Enterprise Products Partners generates strong free cash flow, with an operating cash flow of approximately $8.8 billion, resulting in around $4.2 billion in free cash flow annually, after deducting capital expenditures. Another significant benefit for shareholders is that most of the corporate debt is fixed-rate, thereby limiting the risk of rising interest rates.
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The company provides various midstream energy services, including:
Gathering Processing Transporting and storing natural gas, natural gas liquids (NGL), and fractionation Import and export terminalling Offshore production platform
The company has four reportable business segments:
Natural Gas Pipelines and Services NGL Pipelines and Services Petrochemical Services Crude Oil Pipelines and Services
One reason many analysts like the stock might be its distribution coverage ratio. The company’s coverage ratio is well above 1x, making it relatively less risky among the master limited partnerships.
Wells Fargo has an Overweight rating with a $42 target price objective.
Materials/Commodities: Bunge Global
While off the radar of many investors, this company, located outside St. Louis, pays a 2.26% dividend and could be a big winner the rest of 2026. Bunge Global (NYSE: BG) is an agribusiness and food company that operates through four segments:
Agribusiness Refined and Specialty Oils Milling and Sugar Bioenergy
The Agribusiness segment purchases, stores, transports, processes, and sells agricultural commodities and commodity products, including oilseeds, primarily soybeans, rapeseed, canola, and sunflower seeds, as well as grains comprising wheat and corn. It processes oilseeds into vegetable oils and protein meals.
This segment offers its products for:
Animal feed manufacturers Livestock producers Wheat and corn millers Oilseed processors Third-party edible oil processing Biofuel companies for biofuel production applications
The Refined and Specialty Oils segment sells packaged and bulk oils and fats that comprise:
Cooking oils Shortenings Margarines Mayonnaise Renewable diesel feedstocks Products for baked goods companies, snack food producers, confectioners, restaurant chains, foodservice operators, infant nutrition companies, other food manufacturers, grocery chains, wholesalers, distributors, and other retailers
This segment also refines and fractionates palm oil, palm kernel oil, coconut oil, shea butter, and olive oil, and produces specialty ingredients derived from vegetable oils, such as lecithin.
The Milling segment provides wheat flours and bakery mixes; corn milling products comprising dry-milled corn meals and flours, wet-milled masa and flours, and flaking and brewer's grits; soy-fortified corn meal, corn-soy blends, and other products; whole-grain and fiber ingredients; die-cut pellets; and non-GMO products.
The Sugar and Bioenergy segment produces sugar and ethanol, and generates electricity from burning sugarcane bagasse.
BMO Capital Markets has an Outperform rating with a target price of $150.
Real Estate: Simon Property Group
Simon Property Group (NYSE: SPG), a leading real estate company, is a self-administered and self-managed real estate investment trust (REIT) that pays a solid 4.23% dividend. It owns, develops, and manages premier shopping, dining, entertainment, and mixed-use destinations, primarily consisting of malls, Premium Outlets, and The Mills.
The company owns or holds an interest in approximately 196 income-producing properties in the United States, which consist of :
93 malls 70 Premium Outlets 14 Mills Six lifestyle centers 13 other retail properties in 37 states and Puerto Rico
It also holds an interest in 22 regional, super-regional, and outlet malls in the United States and Asia.
Additionally, redevelopment and expansion projects, including the addition of anchors, big-box tenants, and restaurants, are underway at properties in North America, Europe, and Asia. Internationally, the company owns 35 Premium Outlets and Designer Outlet properties, primarily located in Asia, Europe, and Canada. It also has two luxury outlet destinations in Italy.
Piper Sandler has an Overweight rating with a $230 target price.
Financials: U.S. Bancorp
Based in Minneapolis, this super-regional financial giant is an outstanding choice for growth and income investors now, offering a hefty 3.71% dividend. U.S. Bancorp (NYSE: USB) is a financial services holding company.
The bank's segments are:
Wealth Corporate Commercial and Institutional Banking Consumer and Business Banking Payment Services Treasury and Corporate Support
It offers a comprehensive range of financial services, including lending and deposit services, cash management, capital markets, and trust and investment management services. It also engages in credit card services, merchant and ATM processing, mortgage banking, insurance, brokerage, and leasing.
The company's banking subsidiary, U.S. Bank National Association (USBNA), is engaged in the banking business, principally in domestic markets. USBNA provides a range of products and services to individuals, businesses, institutional organizations, governmental entities, and other financial institutions.
The non-banking subsidiaries offer investment and insurance products to customers primarily within their domestic markets, as well as fund administration services to a range of mutual and other funds.
Oppenheimer has an Outperform rating with a $73 target price.
Consumer Staples: Altria
Altria (NYSE: MO) is one of the world's largest producers and marketers of cigarettes and other tobacco-related products. It offers value investors a solid entry point and a 6.17% dividend. Altria manufactures and sells smokable and oral tobacco products in the United States, and it primarily sells cigarettes under the Marlboro brand, as well as:
Cigars and pipe tobacco, principally under the Black & Mild and Middleton brands Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands on! Oral nicotine pouches e-vapor products under the NJOY ACE brand
The company sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.
Altria used to own over 10% of Anheuser-Busch InBev (NYSE: BUD), the world's largest brewer. In March of 2024, the company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of its holdings but still leaves 8% of the outstanding shares in its back pocket. Altria also announced a $2.4 billion stock repurchase plan partially funded by the sale.
Altria increased its quarterly dividend in the fall of 2025 by 3.9%, from $1.02 to $1.06 per share, marking its 55th consecutive dividend increase.
UBS has a Buy rating with a $74 target price.
The analyst who called NVIDIA in 2010 just named his top 10 AI stocks
This analyst's 2025 picks are up 106% on average. He just named his top 10 stocks to buy in 2026. Get them here FREE.
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- The 3-Bucket Income Portfolio: How to Build $5,000 a Month From Dividends, Bonds, and REITs
May 12, 2026 · 247wallst.com
Pulling $5,000 a month from a portfolio is a common benchmark for early retirees who want a middle-class income floor without relying on full-time work. It can help cover property taxes, insurance, healthcare premiums, groceries, utilities, and the basics of a comfortable middle-class life in many parts of the country. Building it without leaning on a... The 3-Bucket Income Portfolio: How to Build $5,000 a Month From Dividends, Bonds, and REITs
- Inflation Is Coming: 5 High-Yielding Stocks in Sectors That Will Thrive
May 12, 2026 · 247wallst.com
You don't need to be an economist to determine that the path of least resistance for inflation will be higher as 2026 rolls on.
- AMZA jumped 158% in two years, but the math behind those $0.34 checks is fragile
May 11, 2026
Quick Read
InfraCap MLP ETF (AMZA) — raised monthly payout to $0.34, but leverage and 2.75% fees carry structural risks. AMZA uses 1.25x leverage and covered calls to generate 7.5-8% yield, making payouts sensitive to oil, rates, and volatility. Oil near $110 barrel and strong AI-driven energy demand support distributions through next 12-24 months, though cycle downturn poses long-term risk. The analyst who called NVIDIA in 2010 just named his top 10 stocks and InfraCap Active MLP ETF wasn't one of them. Get them here FREE.
If you own the InfraCap MLP ETF (NYSEARCA:AMZA) for income, the question is simple: can the fund keep cutting those $0.34 monthly checks? AMZA pays a roughly 7.5% to 8% distribution yield from a concentrated, leveraged basket of energy midstream Master Limited Partnerships, and management just raised the monthly payout from $0.29 in 2025 to $0.34 in 2026. The next 12 to 24 months look well covered, but the structure carries real long-term risk that holders should understand before relying on AMZA as a retirement paycheck.
How AMZA generates its yield
AMZA is an actively managed fund holding 25 to 50 MLPs tied to U.S. pipelines and energy infrastructure. Income comes from three layers. First, the underlying MLPs (Energy Transfer, MPLX, Enterprise Products Partners, Plains All American, Kinder Morgan) pay distributions funded by long-term, fee-based "toll collector" contracts on moving and storing hydrocarbons. Second, InfraCap applies 1.25x leverage, borrowing to buy more units and amplify cash flowing back to shareholders. Third, a covered-call overlay sells options on holdings to harvest premium income.
The analyst who called NVIDIA in 2010 just named his top 10 stocks and InfraCap Active MLP ETF wasn't one of them.Get them here FREE.
That stack is why the yield exceeds AMLP's, but distributions are more sensitive to oil prices, interest rates, and volatility. The fund issues a 1099 instead of a K-1, which is why many retirees pick it over individual MLPs.
The cash flow picture
Conditions for the underlying MLPs are strong. WTI crude is almost $110 a barrel, in the 98th percentile of the past year, after recovering from a December low near $55. High prices alone do not guarantee MLP cash flow (these are volume businesses), but they keep producers drilling and pipelines full. Surging power demand from AI data centers and LNG exports means toll collectors are running at strong utilization.
Monthly payouts have stepped up every year since 2022: $0.22, then $0.24, $0.26, $0.29, and now $0.34. Coverage looks credible enough that InfraCap raised the rate by roughly 17% heading into 2026, and four consecutive months at $0.34 have already been declared and paid.
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Where the risk lives
Three issues deserve weight. The expense ratio is 2.75%, more than three times the 0.85% charged by the Alerian MLP ETF (NYSEARCA:AMLP). On a six-figure position, that gap compounds into thousands of dollars a year of lost yield.
Leverage cuts both ways. The same 1.25x that boosts distributions makes AMZA's NAV swing harder when energy rolls over, and borrowing costs rise with the 10-year Treasury. The fund's tax accounting is lumpy: in April 2026 InfraCap booked a $6.6 million deferred tax liability reduction worth about $0.68 per share, after an August 2025 accrual of roughly $0.14 per share. Those revisions move NAV unpredictably because they rely on delayed MLP reporting.
Total return reality
Yield without price context can mislead. AMZA shares are at about $46, up 22% over one year and 158% over five years. AMLP, the unleveraged peer, is up 20% over one year and 131% over five. AMZA has earned its higher fee in this cycle. Over ten years, AMZA is up 77% versus AMLP's 106%, a reminder that leverage and decay erode total return when the cycle turns.
The verdict
The $0.34 monthly payout looks safe through the next handful of quarters. Underlying MLP cash flows are healthy, oil is firm, AI-driven energy demand keeps hydrocarbon volumes elevated, and management is raising rather than trimming. The danger is structural: a sustained drop below $70 oil, a spike in financing costs, or another tax adjustment can pressure NAV faster than distributions. AMZA fits an income investor who wants 1099 simplicity and accepts leverage and a 2.75% fee. Cost-conscious holders who want the same midstream thesis with less drag should weigh AMLP instead.
The analyst who called NVIDIA in 2010 just named his top 10 AI stocks
This analyst's 2025 picks are up 106% on average. He just named his top 10 stocks to buy in 2026. Get them here FREE.
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- AMZA jumped 158% in two years, but the math behind those $0.34 checks is fragile
May 11, 2026 · 247wallst.com
If you own the InfraCap MLP ETF (NYSEARCA:AMZA) for income, the question is simple: can the fund keep cutting those $0.34 monthly checks?
- My Top 3 Energy Stocks for May 2026
May 9, 2026
Investors have a bad habit of projecting current events too far into the future. When it comes to energy prices, history is clear: volatility is the norm. So, high energy prices today aren't a good indication that they will be high in the future. In fact, today's high prices are likely to be followed by lower prices sooner than you may expect.
Proceeding with caution is a good idea, since the geopolitical conflict that is pushing energy prices higher right now will, eventually, end. Which is why conservative investors will like high-yielders Enterprise Products Partners(NYSE: EPD) and Enbridge(NYSE: ENB). But if you just have to own an oil producer, a company like Chevron(NYSE: CVX) is probably a good balance of risk and reward.
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Continue »Image source: Getty Images.
These toll takers are boring, but they have attractive yields
For most investors, the big draw for Enterprise and Enbridge will be their lofty yields. Enterprise is a master limited partnership (MLP), and it has a 5.6% distrubion yield. Notably, unitholders have to deal with a K-1 come April 15, which makes taxes a little more complex. Enbridge is a Canadian company with a 5.1% yield. U.S. investors have to pay Canadian taxes on their dividends, but some of that can be claimed back when you file your taxes.
Both companies operate large energy infrastructure portfolios in North America. They charge fees for the use of their assets, such as pipelines, so the volume moving through their systems is more important than the price of the energy products they transport. Energy is vital to modern society, so volumes tend to remain robust regardless of oil prices. All in, the yields here are supported by robust cash flows.
The big story, however, is how reliable these two dividend stocks have been. Enterprise's distribution has been increased annually for 27 years, while Enbridge's dividend has been increased for 31 years, in Canadian dollars.
Neither investment is going to excite you, but that's the point. They are slow-and-steady businesses with attractive yields in an industry known for volatility. Given today's high oil prices, conservative income investors would be wise to err on the side of caution with Enterprise or Enbridge. Oil prices will eventually fall, perhaps dramatically, when the conflict in the Middle East is finally over. But these two high-yielders should keep paying you through it all.
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Chevron is financially strong and diversified
If you still feel the urge to invest directly in an oil producer, despite the fact that oil prices rise and fall over time, then take a look at Chevron. It has an attractive 3.7% dividend yield backed by decades of annual dividend increases. That's proof of the company's resilience through the entire energy cycle.
That said, it is important to understand what you are buying. Chevron is a globally diversified integrated energy giant, so it has exposure across the entire energy value chain. While oil prices are a key driver of the company's performance, exposure to different geographic regions and to the midstream and downstream (chemicals and refining) helps soften the inherent swings in oil prices. On top of that, the company has a very strong balance sheet, with a debt-to-equity ratio of roughly 0.25x. That is low for any company and second only to ExxonMobil's (NYSE: XOM) roughly 0.2x in its peer group.
Exxon is just as good a business as Chevron, so you could buy it as an alternative. However, Exxon's dividend yield is 2.7%. Given the similarities of the two businesses, Chevron's higher yield will probably be a better option for most investors.
This too shall pass
High oil prices are great for oil producers. But today's high oil prices won't last forever. If you are buying into the energy sector after the oil price surge, you should be thinking about what happens to your investment when oil prices eventually fall. Enterprise, Enbridge, and Chevron have all proven that they can keep paying their lofty dividends even during periods of low oil prices. Don't underestimate the value of that just because oil prices are high right now.
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Reuben Gregg Brewer has positions in Enbridge. The Motley Fool has positions in and recommends Chevron and Enbridge. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.
My Top 3 Energy Stocks for May 2026 was originally published by The Motley Fool
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- Want Safe Dividend Income in 2026 and Beyond? Invest in This Ultra-High-Yield Stock.
May 9, 2026
Success with investing in high-yield dividend stocks can often be elusive. After all, high yield can often signal high risk, whether that's a high risk of a dividend cut or of negative developments driving share price declines that vastly exceed quarterly dividends and distributions.
However, among the scores of stocks with forward yields of 5% or more, Enterprise Products Partners(NYSE: EPD) stands out as a relatively safe and steady choice for income investors.
Will AI create the world's first trillionaire? Our team just released a report on a little-known company, called an "Indispensable Monopoly," providing the critical technology Nvidia and Intel both need.
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Between its strong dividend growth track record and its game plan to capitalize on industry growth opportunities, it checks many important boxes for yield-focused investors.Image source: Getty Images.
Midstream is the name of the game
There are numerous integrated oil and gas stocks with long dividend growth records. However, for example, ExxonMobil and Chevron typically have much lower forward dividend yields. There are also some oil and gas dividend stocks offering high yields, including those that exceed Enterprise Products Partners' yield.
But these high dividends are often inconsistent, not to mention contingent on oil and gas prices remaining at record highs. Current conditions notwithstanding, all it takes is a change in geopolitics or the emergence of a pandemic to shift crude oil and natural gas prices radically.
Hence, when it comes to energy stocks, high yields, and dividend growth, midstream is the name of the game. Midstream energy stocks, such as pipeline stocks, commonly meet all these criteria for two key reasons. First, most are master limited partnerships, pass-through entities that pay out most of their pretax earnings as distributions.
Second, the midstream energy business itself has a far more steady revenue model. With long-term fixed contracts, cash flows are consistent and steadily grow over time. So, among dozens of publicly traded pipeline MLPs, why does Enterprise Products Partners stand out?
A Dividend King in the making, with growth catalysts to boot
The first unique feature of Enterprise Products Partners is its dividend growth track record. This MLP has 29 years of annual consecutive dividend increases under its belt. That makes this stock a little over two decades away from becoming one of the Dividend Kings, or stocks with 50 or more years of consecutive dividend increases.
Moreover, this MLP's growth streak signals a trend likely to continue, even during challenging times. After all, while competitors like Energy Transfer opted to slash distributions during the peak of the COVID-19 pandemic, Enterprise Products Partners remained steadfast, knowing how important distribution growth is to its unitholders. Currently yielding 5.7%, over the past decade, its payout has grown by an average of 3.6% annually.
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What about future growth? That brings us to this MLP's second standout feature: high exposure to energy industry growth trends. To capitalize on the rising demand for natural gas due to the artificial intelligence (AI) data center boom, Enterprise is expanding its more than 50,000-mile pipeline network. The MLP has nearly $5 billion in major capital projects under construction.
This growth points not only to further annualized growth in Enterprise's cash distributions, but also to unit buybacks. In October 2025, the MLP expanded its repurchase program with plans to buy back up to $5 billion in outstanding units. For income investors seeking high yields but with mitigated risk, consider Enterprise Product Partners a top choice.
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Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.
Want Safe Dividend Income in 2026 and Beyond? Invest in This Ultra-High-Yield Stock. was originally published by The Motley Fool
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- My Top 3 Energy Stocks for May 2026
May 9, 2026 · fool.com
Given the lofty price of oil, energy investors should probably think about what happens when oil prices fall.
