Enterprise Products Partners' (EPD) Dividend Track Record Makes it a Strong Affordable Dividend Stock Choice

Enterprise Products Partners L.P. (NYSE:EPD) is included among the 11 Best Affordable Dividend Stocks to Buy Now.

Enterprise Products Partners L.P. (NYSE:EPD) is one of the largest midstream oil and gas operators in North America. The critical connection between upstream production and downstream refining and chemical processing is provided by the midstream portion of the energy industry. It just operates the pipeline as a toll road between the two labor unions.

Midstream businesses are different from upstream and downstream operations that are largely reactive to commodity prices. Because we live in a world where energy is required, the services Enterprise Products Partners L.P. (NYSE:EPD) offers are nevertheless in consistent demand, no matter how much oil prices rise or fall. Such reliable cash flows lend support to its distributions, which the firm has raised annually for the past 27 years.

With an investment-grade balance sheet and distributable cash flow coverage at 1.7 times the payout, there is even more upside to be had from here for Enterprise Products Partners L.P. (NYSE:EPD) to grow its dividend. That large margin absorbs the threat of a distribution cut, and it also makes those shares super appealing for income-focused conservative investors. The company currently pays a quarterly dividend of $0.545 per share and has a dividend yield of 7.01% as of October 2.

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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Disclosure: None.