Enterprise Products Partners: A High-Yield Income Powerhouse
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy EPD?
Source: Fool
- Stable Dividend Yield: Enterprise Products Partners (EPD) boasts a current yield of 6.3%, significantly higher than the S&P 500's 1.1%, making it an ideal choice for high-yield investors, with a track record of increasing distributions for 27 consecutive years, reflecting its robust cash flow and profitability.
- Passive Income Calculation: To generate $1,000 in annual passive income, investors would need to own 454.5 units, translating to an investment of approximately $15,900 at the current unit price of $35, which is substantially lower than the $87,700 required for an S&P 500 investment, highlighting EPD's attractiveness.
- Strong Cash Flow: In 2025, EPD generated $7.9 billion in distributable cash flow, covering its high-yield distribution by a factor of 1.7, allowing the company to retain $3.2 billion for reinvestment, thereby enhancing its financial stability.
- Future Investment Plans: EPD plans to invest between $2.5 billion and $2.9 billion in growth capital projects by 2027, which, alongside declining capital expenditures and new projects entering commercial service, will increase its free cash flow, supporting ongoing distribution growth and stock buybacks while further strengthening its elite balance sheet.
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Analyst Views on EPD
Wall Street analysts forecast EPD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EPD is 35.17 USD with a low forecast of 33.00 USD and a high forecast of 38.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
6 Buy
5 Hold
1 Sell
Moderate Buy
Current: 35.080
Low
33.00
Averages
35.17
High
38.00
Current: 35.080
Low
33.00
Averages
35.17
High
38.00
About EPD
Enterprise Products Partners L.P. is a provider of midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, refined products and petrochemicals. Its NGL Pipelines & Services segment includes natural gas processing and related NGL marketing activities, NGL pipelines, NGL fractionation facilities, NGL and related product storage facilities and NGL marine terminals. Its Crude Oil Pipelines & Services segment includes crude oil pipelines, crude oil storage and marine terminals and related crude oil marketing activities. Its Natural Gas Pipelines & Services segment includes natural gas pipeline systems that provide for the gathering, treating and transportation of natural gas. Its Petrochemical & Refined Products Services segment includes propylene production facilities; butane isomerization complex and related deisobutanizer (DIB) operations; octane enhancement, iBDH and HPIB production facilities; refined products pipelines, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Enterprise Products Partners: A High-Yield Income Powerhouse
- Stable Dividend Yield: Enterprise Products Partners (EPD) boasts a current yield of 6.3%, significantly higher than the S&P 500's 1.1%, making it an ideal choice for high-yield investors, with a track record of increasing distributions for 27 consecutive years, reflecting its robust cash flow and profitability.
- Passive Income Calculation: To generate $1,000 in annual passive income, investors would need to own 454.5 units, translating to an investment of approximately $15,900 at the current unit price of $35, which is substantially lower than the $87,700 required for an S&P 500 investment, highlighting EPD's attractiveness.
- Strong Cash Flow: In 2025, EPD generated $7.9 billion in distributable cash flow, covering its high-yield distribution by a factor of 1.7, allowing the company to retain $3.2 billion for reinvestment, thereby enhancing its financial stability.
- Future Investment Plans: EPD plans to invest between $2.5 billion and $2.9 billion in growth capital projects by 2027, which, alongside declining capital expenditures and new projects entering commercial service, will increase its free cash flow, supporting ongoing distribution growth and stock buybacks while further strengthening its elite balance sheet.
See More
Analysis of High-Yield Stock Investment Opportunities
- Hormel Foods Dividend Performance: Hormel Foods boasts a 4.7% dividend yield, nearing its historical high, despite challenges from post-pandemic inflation and pricing difficulties, with the board reinstating the former CEO to drive recovery, likely attracting more dividend investors.
- Sustained Dividend Growth: Hormel has increased its dividend for 60 consecutive years, with a modest 1% hike indicating strong recovery potential on a solid foundation, capturing the attention of long-term dividend investors.
- Enterprise Products Partners' Stable Yield: Enterprise Products Partners offers a reliable 6.2% yield in the energy sector, with distributable cash flow covering distributions at a comfortable 1.7x, suggesting potential for further growth, appealing to investors seeking steady income.
- High-Yield Investment Options: Despite the S&P 500's overall yield of only 1.1%, high-yield stocks like Hormel and Enterprise Products Partners present excellent opportunities for investors looking to secure stable income in a volatile market.
See More
Energy Transfer's Attractive Yield and Associated Risks
- Attractive Yield: Energy Transfer offers a 7.3% distribution yield, appealing to dividend investors aiming to maximize portfolio income, although the underlying business structure is somewhat complex.
- Business Complexity: As one of North America's largest midstream operators, Energy Transfer owns energy infrastructure and charges fees for usage, but also serves as the general partner for two publicly traded master limited partnerships, adding management complexity.
- Dividend History Comparison: Unlike Enterprise Products Partners, Energy Transfer cut its distribution in 2020, and while it now targets annual growth of 3% to 5%, past cuts may have disappointed income-dependent investors.
- Investment Considerations: Despite the attractive high yield, the associated risks and complexities of Energy Transfer may lead conservative dividend investors to prefer Enterprise Products Partners, which offers more stable dividend growth.
See More
Enterprise Products Partners' Distribution Continues to Grow
- Stable Distribution Yield: Enterprise Products Partners (EPD) offers a forward distribution yield of 6.3% and has increased its distribution for 27 consecutive years, demonstrating its stability and appeal in the volatile energy sector.
- Strong Cash Flow Performance: In 2025, Enterprise Products Partners achieved record cash flow from operations and EBITDA, with fourth-quarter EBITDA reaching an all-time high, indicating robust financial health and profitability.
- Buyback Plans and Distribution Growth: Despite a negative $1.6 billion in free cash flow in 2025, lower capital expenditures are expected in 2026, with management projecting discretionary cash flow around $1 billion, which will be allocated to buybacks and debt repayment, enhancing per-unit distributions.
- Future Growth Potential: Enterprise Products Partners anticipates double-digit cash flow growth in 2027, driven by new projects coming online, particularly the second train at the Neches River facility and a new processing plant in the Midland Basin, presenting an optimistic growth outlook.
See More
Investment Opportunities in U.S. Pipeline Stocks
- U.S. Energy Production Surge: In 2025, U.S. oil production reached a record 13.6 million barrels per day, while natural gas production exceeded 37.7 trillion cubic feet in 2024, highlighting the U.S.'s dominant position in the global LNG market and attracting investor interest in stable pipeline stock returns.
- Enterprise Products Partners: EPD, one of the largest pipeline operators in the U.S. with over 50,000 miles of pipelines, is set to add 900 million cubic feet per day of new Permian gas-processing capacity by mid-2026, further solidifying its critical role in energy infrastructure.
- Kinder Morgan's Market Position: KMI accounts for about 40% of all natural gas transported in the U.S. with over 66,000 miles of pipeline, connecting major supply basins and demand centers, particularly benefiting from the power demand driven by AI data centers.
- Stable Dividend Yields: EPD has raised its dividend for 27 consecutive years, currently yielding 6.6%, while KMI offers a 3.89% yield, providing attractive options for investors seeking steady income.
See More
Top High-Yield Energy Stocks to Buy
- Enbridge's Stable Income: Enbridge (ENB) offers a forward dividend yield of 5.6% and has increased its dividend for 30 consecutive years; despite a downgrade from JP Morgan due to sluggish crude oil growth, its strong cash flow ensures continued dividend payments.
- Energy Transfer's Growth Potential: Energy Transfer (ET) attracts income investors with a 7.3% distribution yield and has signed natural gas supply agreements with multiple data center operators over the past year, benefiting from the booming construction of AI data centers.
- Enterprise Products Partners' Income Machine: Enterprise Products Partners (EPD) provides a distribution yield of approximately 6.3% and has increased distributions for 27 consecutive years; while only modest growth is expected in 2026, management projects a 10% growth in EBITDA and cash flow for 2027.
- Optimistic Industry Outlook: With ongoing demand for energy infrastructure, all three companies are actively expanding their operations, particularly in renewable energy and AI-related projects, indicating strong long-term growth potential.
See More
Enterprise Products Partners: A High-Yield Income Powerhouse
- Stable Dividend Yield: Enterprise Products Partners (EPD) boasts a current yield of 6.3%, significantly higher than the S&P 500's 1.1%, making it an ideal choice for high-yield investors, with a track record of increasing distributions for 27 consecutive years, reflecting its robust cash flow and profitability.
- Passive Income Calculation: To generate $1,000 in annual passive income, investors would need to own 454.5 units, translating to an investment of approximately $15,900 at the current unit price of $35, which is substantially lower than the $87,700 required for an S&P 500 investment, highlighting EPD's attractiveness.
- Strong Cash Flow: In 2025, EPD generated $7.9 billion in distributable cash flow, covering its high-yield distribution by a factor of 1.7, allowing the company to retain $3.2 billion for reinvestment, thereby enhancing its financial stability.
- Future Investment Plans: EPD plans to invest between $2.5 billion and $2.9 billion in growth capital projects by 2027, which, alongside declining capital expenditures and new projects entering commercial service, will increase its free cash flow, supporting ongoing distribution growth and stock buybacks while further strengthening its elite balance sheet.
See More
Analysis of High-Yield Stock Investment Opportunities
- Hormel Foods Dividend Performance: Hormel Foods boasts a 4.7% dividend yield, nearing its historical high, despite challenges from post-pandemic inflation and pricing difficulties, with the board reinstating the former CEO to drive recovery, likely attracting more dividend investors.
- Sustained Dividend Growth: Hormel has increased its dividend for 60 consecutive years, with a modest 1% hike indicating strong recovery potential on a solid foundation, capturing the attention of long-term dividend investors.
- Enterprise Products Partners' Stable Yield: Enterprise Products Partners offers a reliable 6.2% yield in the energy sector, with distributable cash flow covering distributions at a comfortable 1.7x, suggesting potential for further growth, appealing to investors seeking steady income.
- High-Yield Investment Options: Despite the S&P 500's overall yield of only 1.1%, high-yield stocks like Hormel and Enterprise Products Partners present excellent opportunities for investors looking to secure stable income in a volatile market.
See More
Energy Transfer's Attractive Yield and Associated Risks
- Attractive Yield: Energy Transfer offers a 7.3% distribution yield, appealing to dividend investors aiming to maximize portfolio income, although the underlying business structure is somewhat complex.
- Business Complexity: As one of North America's largest midstream operators, Energy Transfer owns energy infrastructure and charges fees for usage, but also serves as the general partner for two publicly traded master limited partnerships, adding management complexity.
- Dividend History Comparison: Unlike Enterprise Products Partners, Energy Transfer cut its distribution in 2020, and while it now targets annual growth of 3% to 5%, past cuts may have disappointed income-dependent investors.
- Investment Considerations: Despite the attractive high yield, the associated risks and complexities of Energy Transfer may lead conservative dividend investors to prefer Enterprise Products Partners, which offers more stable dividend growth.
See More
Enterprise Products Partners' Distribution Continues to Grow
- Stable Distribution Yield: Enterprise Products Partners (EPD) offers a forward distribution yield of 6.3% and has increased its distribution for 27 consecutive years, demonstrating its stability and appeal in the volatile energy sector.
- Strong Cash Flow Performance: In 2025, Enterprise Products Partners achieved record cash flow from operations and EBITDA, with fourth-quarter EBITDA reaching an all-time high, indicating robust financial health and profitability.
- Buyback Plans and Distribution Growth: Despite a negative $1.6 billion in free cash flow in 2025, lower capital expenditures are expected in 2026, with management projecting discretionary cash flow around $1 billion, which will be allocated to buybacks and debt repayment, enhancing per-unit distributions.
- Future Growth Potential: Enterprise Products Partners anticipates double-digit cash flow growth in 2027, driven by new projects coming online, particularly the second train at the Neches River facility and a new processing plant in the Midland Basin, presenting an optimistic growth outlook.
See More
Investment Opportunities in U.S. Pipeline Stocks
- U.S. Energy Production Surge: In 2025, U.S. oil production reached a record 13.6 million barrels per day, while natural gas production exceeded 37.7 trillion cubic feet in 2024, highlighting the U.S.'s dominant position in the global LNG market and attracting investor interest in stable pipeline stock returns.
- Enterprise Products Partners: EPD, one of the largest pipeline operators in the U.S. with over 50,000 miles of pipelines, is set to add 900 million cubic feet per day of new Permian gas-processing capacity by mid-2026, further solidifying its critical role in energy infrastructure.
- Kinder Morgan's Market Position: KMI accounts for about 40% of all natural gas transported in the U.S. with over 66,000 miles of pipeline, connecting major supply basins and demand centers, particularly benefiting from the power demand driven by AI data centers.
- Stable Dividend Yields: EPD has raised its dividend for 27 consecutive years, currently yielding 6.6%, while KMI offers a 3.89% yield, providing attractive options for investors seeking steady income.
See More
Top High-Yield Energy Stocks to Buy
- Enbridge's Stable Income: Enbridge (ENB) offers a forward dividend yield of 5.6% and has increased its dividend for 30 consecutive years; despite a downgrade from JP Morgan due to sluggish crude oil growth, its strong cash flow ensures continued dividend payments.
- Energy Transfer's Growth Potential: Energy Transfer (ET) attracts income investors with a 7.3% distribution yield and has signed natural gas supply agreements with multiple data center operators over the past year, benefiting from the booming construction of AI data centers.
- Enterprise Products Partners' Income Machine: Enterprise Products Partners (EPD) provides a distribution yield of approximately 6.3% and has increased distributions for 27 consecutive years; while only modest growth is expected in 2026, management projects a 10% growth in EBITDA and cash flow for 2027.
- Optimistic Industry Outlook: With ongoing demand for energy infrastructure, all three companies are actively expanding their operations, particularly in renewable energy and AI-related projects, indicating strong long-term growth potential.
See More
