High-Yield Stock Picks: Enterprise Products and NextEra Energy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 13 2026
0mins
Source: Fool
- Stability of Enterprise Products: Operating in the midstream energy sector, Enterprise Products Partners showcases remarkable stability with 27 consecutive years of annual distribution increases, and its distributable cash flow covers distributions at a strong ratio of 1.7x, making its 5.8% yield attractive to conservative investors.
- Dual Market Advantage of NextEra Energy: With a dividend yield of 2.7%, NextEra Energy exceeds market averages and has consistently raised dividends for over 25 years, reflecting its robust foundation in both utility and renewable energy sectors, with expected annual dividend growth of around 6% in the future.
- Demand Potential from Energy Infrastructure: Supply issues in the Middle East could lead to increased demand for U.S. oil and gas, presenting additional business opportunities for Enterprise Products Partners and further solidifying its market position.
- Long-Term Investment Value: For investors looking to buy and hold, both Enterprise Products Partners and NextEra Energy are compelling options, with the former focusing on high yield and the latter on dividend growth, making them suitable for those seeking to supplement Social Security with dividend income.
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Analyst Views on EPD
Wall Street analysts forecast EPD stock price to fall
12 Analyst Rating
6 Buy
5 Hold
1 Sell
Moderate Buy
Current: 38.470
Low
33.00
Averages
35.17
High
38.00
Current: 38.470
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 Achieves Record Performance
- Operational Records Set: Enterprise Products Partners achieved 12 new operational records in Q1, including marine terminal volumes of 2.3 million barrels per day, a 15% increase year-over-year, indicating a surge in demand for U.S. energy exports amid Middle Eastern conflicts, thereby strengthening its market position.
- Strong Financial Performance: The company generated $2.7 billion in adjusted EBITDA for the quarter, reflecting a 10% year-over-year increase, while adjusted free cash flow also rose 10% to $2.3 billion, demonstrating robust cash generation capabilities sufficient to cover distributions by 1.8 times.
- Expansion Projects Advancing: Enterprise Products Partners completed the Mentone West 2 gas processing plant expansion during the quarter and expects to finish Neches River Phase 2 in Q2 and LPG expansion projects in Q4, which will support future revenue growth as volumes ramp up.
- Future Growth Outlook: The company anticipates continued approval of new projects due to ongoing growth in natural gas and NGL production in the Permian Basin, with a total of $5.3 billion in major capital projects under construction, reflecting its long-term strategic planning to meet rising U.S. energy demand.
See More
Enterprise Products Partners Reports Record-Breaking Q1 Performance
- Operational Records Set: Enterprise Products Partners achieved 12 new operational records in Q1, including marine terminal volumes averaging 2.3 million barrels per day, a 15% increase year-over-year, indicating the company's robust capacity to meet U.S. energy export demands.
- Strong Financial Performance: The company generated $2.7 billion in adjusted EBITDA for the quarter, reflecting a 10% year-over-year increase, while adjusted free cash flow also rose 10% to $2.3 billion, showcasing its strong cash flow generation capabilities.
- Expansion Projects Advancing: Enterprise Products completed the Mentone West 2 Gas Processing Plant expansion during the quarter and expects to finish Neches River Phase 2 in Q2, further enhancing its ability to meet energy demand and anticipated additional income from these projects.
- Growth Outlook: The company anticipates continued project approvals due to rising natural gas and NGL production in the Permian Basin, supporting sustainable growth of its high-yield distribution, which has been increased for 27 consecutive years, highlighting its strong long-term investment potential.
See More
Energy Transfer and High-Yield Investment Opportunities
- Energy Transfer Growth Potential: Energy Transfer (NYSE: ET) currently offers a 7% dividend yield and is well-positioned in the U.S.'s largest integrated midstream system, particularly in the prolific Permian Basin, with two major natural gas projects set to drive high-return growth in the future.
- MPLX Dividend Growth: MPLX (NYSE: MPLX) boasts a 7.8% yield, having increased its distribution by over 10% each of the past four years, including a 12.5% rise in 2025, and plans to maintain similar growth rates in 2026 and 2027, highlighting its strong growth potential in natural gas and NGL sectors.
- Stability of Enterprise Products: Enterprise Products Partners (NYSE: EPD) has raised its dividend for 27 consecutive years, currently yielding 5.8%, and while it is reducing capex this year, it expects to complete several projects by 2026 that will lead to double-digit EBITDA and cash flow growth, making it a solid long-term hold.
- Attractiveness of Midstream Energy Investments: As oil prices rise due to the conflict with Iran, midstream energy stocks provide a more stable investment avenue, with most contracts being fee-based, effectively insulating them from energy price fluctuations and ensuring visibility into future cash flows and high yields.
See More
Midstream Energy Stocks: High Yields and Steady Growth
- Energy Transfer: AI Winner: Energy Transfer (ET) boasts a 7% dividend yield and operates one of the largest integrated midstream systems in the U.S., particularly well-positioned in the Permian Basin, which is expected to provide stable natural gas supplies for AI infrastructure, thus driving future high-return growth projects.
- MPLX: Double-Digit Distribution Growth: MPLX offers a 7.8% yield and has increased its distribution by over 10% annually for the past four years, including a 12.5% increase in 2025, with plans to maintain similar growth rates in 2026 and 2027, indicating strong growth potential in Texas and along the Gulf Coast.
- Enterprise Products Partners: Consistency King: Enterprise Products Partners (EPD) has raised its dividend for 27 consecutive years, currently yielding 5.8%, and is expected to achieve double-digit EBITDA and cash flow growth following the completion of several projects in 2026, making it a reliable long-term investment despite this being a transition year.
- Capital Expenditure Growth: MPLX has increased its growth capital expenditures from $2 billion to $2.4 billion this year, reflecting a strong investment intent in its natural gas and NGL operations, further solidifying its competitive position in the midstream energy market.
See More
Enterprise Products Partners Q1 2026 Earnings Call Highlights
- Strong Financial Performance: In Q1 2026, Enterprise Products Partners generated $2.7 billion in EBITDA with a 1.8x coverage of distributable cash flow, indicating robust performance and enhanced profitability in the market.
- Operational Efficiency Gains: The company processed 8.3 billion cubic feet of natural gas daily, fractionated 1.9 million barrels of NGLs, loaded 2.3 million barrels of hydrocarbons, and transported 14.2 million barrels of oil equivalent per day, showcasing significant operational capacity improvements and effective market demand response.
- Capital Expenditure Plans: Expected growth capital expenditures for 2026 are projected between $2.3 billion and $2.6 billion, with a $300 million increase due to investments in new natural gas processing plants in the Permian, yet still anticipating $1 billion in discretionary cash flow, reflecting confidence in future growth.
- Sustained Dividend Growth: The company declared a distribution of $0.55 per unit, on track for 28 consecutive years of distribution growth in 2026, demonstrating a continued commitment to capital allocation and shareholder returns.
See More
Enterprise Products Partners Set for Seventh Straight Day of Gains
- Stock Price Surge: Enterprise Products Partners (EPD) saw a 0.63% increase in stock price on Tuesday, closing at $38.46, marking its seventh consecutive day of gains, with a total rise of 4.23% over the past six sessions, indicating strong market confidence in its stability.
- Earnings Report: The company reported Q1 GAAP EPS of $0.68, missing estimates by $0.03, while revenue of $14.39 billion, down 6.7% year-on-year, exceeded expectations by $770 million, demonstrating its ability to maintain profitability amid challenges.
- Distribution Growth: EPD declared a distribution of $0.55 per unit, annualized to $2.20, reflecting a 2.8% increase from the previous year, which not only underscores the company's commitment to shareholder returns but also bolsters investor confidence in its financial health.
- Analyst Rating Downgrade: Analyst Melissa Tucker downgraded EPD to “Hold,” citing limited upside through 2026 despite a distribution yield near 6%, with growth slowing to about 0.9%, making the current valuation harder to justify, indicating a cautious outlook on future growth prospects.
See More
Enterprise Products Partners Achieves Record Performance
- Operational Records Set: Enterprise Products Partners achieved 12 new operational records in Q1, including marine terminal volumes of 2.3 million barrels per day, a 15% increase year-over-year, indicating a surge in demand for U.S. energy exports amid Middle Eastern conflicts, thereby strengthening its market position.
- Strong Financial Performance: The company generated $2.7 billion in adjusted EBITDA for the quarter, reflecting a 10% year-over-year increase, while adjusted free cash flow also rose 10% to $2.3 billion, demonstrating robust cash generation capabilities sufficient to cover distributions by 1.8 times.
- Expansion Projects Advancing: Enterprise Products Partners completed the Mentone West 2 gas processing plant expansion during the quarter and expects to finish Neches River Phase 2 in Q2 and LPG expansion projects in Q4, which will support future revenue growth as volumes ramp up.
- Future Growth Outlook: The company anticipates continued approval of new projects due to ongoing growth in natural gas and NGL production in the Permian Basin, with a total of $5.3 billion in major capital projects under construction, reflecting its long-term strategic planning to meet rising U.S. energy demand.
See More
Enterprise Products Partners Reports Record-Breaking Q1 Performance
- Operational Records Set: Enterprise Products Partners achieved 12 new operational records in Q1, including marine terminal volumes averaging 2.3 million barrels per day, a 15% increase year-over-year, indicating the company's robust capacity to meet U.S. energy export demands.
- Strong Financial Performance: The company generated $2.7 billion in adjusted EBITDA for the quarter, reflecting a 10% year-over-year increase, while adjusted free cash flow also rose 10% to $2.3 billion, showcasing its strong cash flow generation capabilities.
- Expansion Projects Advancing: Enterprise Products completed the Mentone West 2 Gas Processing Plant expansion during the quarter and expects to finish Neches River Phase 2 in Q2, further enhancing its ability to meet energy demand and anticipated additional income from these projects.
- Growth Outlook: The company anticipates continued project approvals due to rising natural gas and NGL production in the Permian Basin, supporting sustainable growth of its high-yield distribution, which has been increased for 27 consecutive years, highlighting its strong long-term investment potential.
See More
Energy Transfer and High-Yield Investment Opportunities
- Energy Transfer Growth Potential: Energy Transfer (NYSE: ET) currently offers a 7% dividend yield and is well-positioned in the U.S.'s largest integrated midstream system, particularly in the prolific Permian Basin, with two major natural gas projects set to drive high-return growth in the future.
- MPLX Dividend Growth: MPLX (NYSE: MPLX) boasts a 7.8% yield, having increased its distribution by over 10% each of the past four years, including a 12.5% rise in 2025, and plans to maintain similar growth rates in 2026 and 2027, highlighting its strong growth potential in natural gas and NGL sectors.
- Stability of Enterprise Products: Enterprise Products Partners (NYSE: EPD) has raised its dividend for 27 consecutive years, currently yielding 5.8%, and while it is reducing capex this year, it expects to complete several projects by 2026 that will lead to double-digit EBITDA and cash flow growth, making it a solid long-term hold.
- Attractiveness of Midstream Energy Investments: As oil prices rise due to the conflict with Iran, midstream energy stocks provide a more stable investment avenue, with most contracts being fee-based, effectively insulating them from energy price fluctuations and ensuring visibility into future cash flows and high yields.
See More
Midstream Energy Stocks: High Yields and Steady Growth
- Energy Transfer: AI Winner: Energy Transfer (ET) boasts a 7% dividend yield and operates one of the largest integrated midstream systems in the U.S., particularly well-positioned in the Permian Basin, which is expected to provide stable natural gas supplies for AI infrastructure, thus driving future high-return growth projects.
- MPLX: Double-Digit Distribution Growth: MPLX offers a 7.8% yield and has increased its distribution by over 10% annually for the past four years, including a 12.5% increase in 2025, with plans to maintain similar growth rates in 2026 and 2027, indicating strong growth potential in Texas and along the Gulf Coast.
- Enterprise Products Partners: Consistency King: Enterprise Products Partners (EPD) has raised its dividend for 27 consecutive years, currently yielding 5.8%, and is expected to achieve double-digit EBITDA and cash flow growth following the completion of several projects in 2026, making it a reliable long-term investment despite this being a transition year.
- Capital Expenditure Growth: MPLX has increased its growth capital expenditures from $2 billion to $2.4 billion this year, reflecting a strong investment intent in its natural gas and NGL operations, further solidifying its competitive position in the midstream energy market.
See More
Enterprise Products Partners Q1 2026 Earnings Call Highlights
- Strong Financial Performance: In Q1 2026, Enterprise Products Partners generated $2.7 billion in EBITDA with a 1.8x coverage of distributable cash flow, indicating robust performance and enhanced profitability in the market.
- Operational Efficiency Gains: The company processed 8.3 billion cubic feet of natural gas daily, fractionated 1.9 million barrels of NGLs, loaded 2.3 million barrels of hydrocarbons, and transported 14.2 million barrels of oil equivalent per day, showcasing significant operational capacity improvements and effective market demand response.
- Capital Expenditure Plans: Expected growth capital expenditures for 2026 are projected between $2.3 billion and $2.6 billion, with a $300 million increase due to investments in new natural gas processing plants in the Permian, yet still anticipating $1 billion in discretionary cash flow, reflecting confidence in future growth.
- Sustained Dividend Growth: The company declared a distribution of $0.55 per unit, on track for 28 consecutive years of distribution growth in 2026, demonstrating a continued commitment to capital allocation and shareholder returns.
See More
Enterprise Products Partners Set for Seventh Straight Day of Gains
- Stock Price Surge: Enterprise Products Partners (EPD) saw a 0.63% increase in stock price on Tuesday, closing at $38.46, marking its seventh consecutive day of gains, with a total rise of 4.23% over the past six sessions, indicating strong market confidence in its stability.
- Earnings Report: The company reported Q1 GAAP EPS of $0.68, missing estimates by $0.03, while revenue of $14.39 billion, down 6.7% year-on-year, exceeded expectations by $770 million, demonstrating its ability to maintain profitability amid challenges.
- Distribution Growth: EPD declared a distribution of $0.55 per unit, annualized to $2.20, reflecting a 2.8% increase from the previous year, which not only underscores the company's commitment to shareholder returns but also bolsters investor confidence in its financial health.
- Analyst Rating Downgrade: Analyst Melissa Tucker downgraded EPD to “Hold,” citing limited upside through 2026 despite a distribution yield near 6%, with growth slowing to about 0.9%, making the current valuation harder to justify, indicating a cautious outlook on future growth prospects.
See More
