Safe Dividend Stocks Spotlight: The Strength Behind Enterprise Products Partners' (EPD) Payout History

Enterprise Products Partners L.P. (NYSE:EPD) is included among the 10 Best and Safe Dividend Stocks to Buy Now.

Enterprise Products Partners L.P. (NYSE:EPD) is the kind of stable investment investors can rely on for the long haul. It’s known for its dependable performance, with about 85% of its cash flow coming from fee-based contracts that often include take-or-pay terms and inflation protections. This setup helps keep earnings steady regardless of energy market fluctuations.

Enterprise Products Partners L.P. (NYSE:EPD) maintains a conservative financial approach, finishing the last quarter with a leverage ratio slightly above 3 and a strong distribution coverage of 1.7 times. Thanks to its solid cash flow, Enterprise can fund most of its growth projects internally without needing to frequently raise additional capital.

Enterprise Products Partners L.P. (NYSE:EPD) does not overlook potential growth opportunities. This year, the company expects to invest between $4 billion and $4.5 billion in expansion projects, a notable increase from the $1.6 billion spent in 2022. These investments generally yield strong results, with the company earning an average return on invested capital of approximately 13%.

On July 9, Enterprise Products Partners L.P. (NYSE:EPD) declared a 2% hike in its quarterly dividend to $0.545 per share. This marked the company’s 27th consecutive year of dividend growth. As of July 27, the stock has a dividend yield of 6.91%.

While we acknowledge the potential of EPD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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