We recently published a list of the 20 Best Growth Actions of High Rentennames Dividends. In this article, let’s take a look where Enterprise Products Partners LP (NYSE: EPD) against other dividend growth actions.
Actions that pay dividends have been gaining popularity among investors due to their long -term advantages. According to Jeremy Zirin, who leads the North Capital Team -American for private customers of the UBS Asset Management, companies with a constant record of increasing dividends are a smart choice for investors seeking a balanced approach to the current market environment. When the markets fell in April after President Donald Trump announced new fare policies, investors gravitated to high -performance dividend actions. However, as commercial tensions began to relieve -and negotiations advanced, the markets recovered. Stocks increased especially after the United States and China agree to temporarily reduce rates. Made the following comment on dividend actions:
“Higher dividend performance strategies are usually better when the markets are in a real crisis and decrease, but if there are more sting, more volatility and potentially upside down … you will not want to be too defensive.”
Historically, companies that constantly increase their dividends have tended to be less volatile and often obtained stronger returns than the larger market, including reference points such as the weight index as well as S&P. According to a Guggenheim report, from May 2005 to December 2024, companies that started or increase their dividends generated an average annual return of 10.5%. However, companies that reduced or suspend their payments recorded only 5.5% per year. The global market returned 10.4% during this period, slightly behind dividend producers. The report also emphasized that dividend growth strategies have had good performance historically in both increasing and fall markets, which makes them an attractive option for long -term investors and protection against their disadvantage.
According to a Global S & P report, the growth of global dividend payments had been reduced since postcóvid recovery, but this trend was reversed last year. By 2024, the growth rate unexpectedly accelerated up to 8%, and shareholders received about $ 180 million more than the previous year. This increase was a surprise, given the persistent geopolitical and economic challenges. The report also stated that various sectors and regions saw initiations of registered dividends, including the technology, media and telecommunications sector of the United States (TMT), the banks of Italy and Spain, the Japan automotive industry and a general increase in continental China payments. Even with extreme priced fluctuations, the payments of dividends in the oil and gas sector remained strong. In front, the report suggested that this high level of dividends is likely to remain constant, and the world payments are expected to remain at $ 2.3 trillion by 2025.
With the growing appetite of investors due to actions that pay dividends, many companies have responded by gradually increasing their dividend payments. A report by Janus Henderson revealed that the payments of global dividends reached a record of $ 1.75 trillion by 2024, reflecting a 6.6% increase in the underlying manner. The overall growth rate occurred by 5.2%, slightly retained by a drop in unique special dividends and the stronger US dollar effect. Of the 49 countries treated in the report, 17, including large economies such as the United States, Canada, France, Japan and China, placed high dividend levels. In total, 88% of companies collected or maintained their dividends constantly during the year.
Is the company Products Partners LP (EPD) the best growth action of high -yielding dividends?
Aerial view of a refinery tower surrounded by the extensive landscape of pipes in an installation of oil and gas.
For this list, split shares were analyzed with yields with more than 3% from May 13. From this group, we perfected our selection criteria by identifying actions with a growth streak of dividends of 10 years or more. Actions are classified in ascending order of their dividend returns.
At Insider Monkey, we are obsessed with coverage funds. Why are we interested in the stocks that cover the funds? The reason is simple: our research has shown that we can overcome the market by imitating the best stock options for the best coverage funds. The strategy of our quarterly bulletin selects 14 stocks of small layers and large layers each quarter and has returned 373.4% since May 2014, surpassing its reference point at 218 percentage points (Check out more details here)).
Dividend performance from May 13: 6.88%
Enterprise Products Partners LP (NYSE: EPD) is a North -American company of Midstream Energy that operates an extensive portfolio of infrastructure. The Limited Association manages a wide network of more than 50,000 miles of pipes, which carry crude, natural gas, natural gas liquids (NGL) and several hydrocarbons throughout the United States. In addition, she owns and operates natural gas processing units, liquid storage installations, fractionation plants and other midstream infrastructure. Its financial performance is still resistant and is not strongly influenced by the changes in the prices of goods. Shares have obtained a profitability of more than 10% in the last 12 months.
In the first quarter of 2025, Enterprise Products Partners LP (NYSE: EPD) recorded revenue of $ 15.4 billion, which showed a 4.45% growth over the same period last year. Income also exceeded the estimates of analysts at $ 1.4 billion. The company’s operating revenue reached $ 1.76 billion, and their net income was $ 1.4 billion.
Enterprise Partners Cash position LP (NYSE: EPD) makes it one of the best dividend actions on our list. In the most recent quarter, the company reported an operating cash flow of $ 2.1 billion, and its free cash flow reached $ 1.05 million. Its quarterly dividend reaches $ 0.535 per action for a dividend performance of 6.88%, from May 13. The company’s dividend growth streak covers 27 years.
Generally, EPD Ranks 3rd In our list of the best growth actions of high -yielding dividends. Although we recognize the potential of the EPD as an investment, our conviction lies in the belief that some deeply undervalued dividend actions have a greater promise to obtain higher returns and to do it in a shorter period. If you are looking for a deeply undervalued dividend stock that is more promising than EPD, but it sells its earnings ten times and grows its earnings on double digit rates per year, see our report on the Cheap dividend actions of dirt.
