High-Yield Stock Picks: Enterprise Products and NextEra Energy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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: 36.590
Low
33.00
Averages
35.17
High
38.00
Current: 36.590
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.
High-Yield Stock Picks: Enterprise Products and NextEra Energy
- 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.
See More
Iran War Drives Oil Prices to $93.63 per Barrel
- Oil Price Surge: Following the U.S. and Israel's joint airstrike on Iran, Brent crude futures reached $93.63 per barrel on Wednesday evening, reflecting a 6.6% increase from Tuesday and a 31% rise from the pre-war price of $71, which will exert greater pressure on consumers.
- Consumer Impact: High oil prices are not only driving up gasoline costs but also heating oil prices in older Northeast areas, with rising transportation costs increasing prices for most products, particularly agricultural and heavier goods, thereby exacerbating inflation.
- Historical Trends: Historical data indicates that oil price spikes caused by geopolitical events are typically short-lived, as prices often decline rapidly after combat operations cease, with markets being forward-looking and adjusting even before conflicts fully end.
- Investment Advice: While oil stocks may not be attractive for short-term investments, carefully selected midstream companies like Enterprise Products Partners (EPD) and Enbridge (ENB) could represent appealing long-term income-generating investments due to their financial results being less affected by oil price fluctuations.
See More
Brent Oil Prices Surge to $93.63 Amid Iran Conflict
- Oil Price Surge: As of Wednesday night, Brent crude futures reached $93.63 per barrel, reflecting a 6.6% increase from Tuesday and a 31% rise from the pre-war price of $71, highlighting the significant impact of geopolitical tensions on the market.
- Attractive Midstream Stocks: While investing in oil stocks solely due to the Iran conflict may not be advisable, midstream companies like Enterprise Products Partners (EPD) and Enbridge (ENB) offer appealing long-term investment opportunities with stable yields of 5.91% and 5.31%, respectively, due to their fee-based contracts.
- Inflationary Pressures: Rising oil prices not only increase gasoline costs but also elevate heating oil prices and transportation expenses, leading to higher prices for most goods, particularly agricultural and heavier products, thereby exacerbating inflation risks.
- Historical Trend Insights: Historical data indicates that oil price spikes caused by geopolitical events are typically short-lived, with prices often declining rapidly after combat operations cease, providing crucial market insights for investors to approach oil stock investments with caution in the current climate.
See More
U.S. to Build First Oil Refinery in 50 Years, $300 Billion Deal
- Historic Investment: President Trump announced that the U.S. will get its first oil refinery in 50 years, funded by Indian billionaire Mukesh Ambani's Reliance Industries, with a staggering $300 billion deal marking the largest in U.S. history.
- Enhanced National Security: The new refinery, located at the port of Brownsville, Texas, is designed to process 100% American shale oil, aiming to bolster national security and significantly increase U.S. energy production capabilities.
- Significant Economic Impact: Trump stated that the project will deliver billions of dollars in economic impact, further driving the domestic energy sector's growth and creating numerous job opportunities in related industries.
- Environmental Commitment: The refinery is set to be the cleanest in the world, reflecting a commitment to environmental sustainability while showcasing the U.S.'s strategic shift towards sustainable energy production.
See More
High-Yield Stocks Gain Appeal Amid Market Turbulence
- Brookfield Renewable: Brookfield Renewable is expected to double its revenue from $5.1 billion to $10.7 billion by 2028, driven primarily by the rapid growth of cloud computing and AI markets, while long-term renewable power agreements with Microsoft and Google will further solidify its market position.
- Stable Dividend Yield: Brookfield Renewable offers a forward yield of 5.2%, and although it has not yet achieved consistent profitability, its adjusted EBITDA is projected to grow at an 8% CAGR from 2025 to 2028, indicating strong future earnings potential.
- Enterprise Products Partners: Enterprise Products Partners operates over 50,000 miles of pipeline across 27 states, with an expected operational distributable cash flow of $7.9 billion in 2025, easily covering its $4.8 billion in distributions, ensuring a sustainable 5.9% yield.
- Market Competitive Advantage: While Enterprise Products Partners is less aggressive in expanding its pipeline network compared to competitors, its lower debt levels and stable revenue model provide relative safety and attractiveness in turbulent market conditions.
See More
Middle East Conflicts Catalyze Energy Stock Surge
- Significant Investment Potential: In 2026, as oil and gas prices soared, investors flocked to Enterprise Products Partners (EPD), with its unit price up 16% year-to-date as of March 9, indicating strong investment appeal and market confidence.
- Stable Cash Flow: Enterprise Products Partners has maintained a double-digit return on invested capital (ROIC) every year since 2005, with an average ROIC of 12% over the past decade, demonstrating its stability and resilience across various economic cycles.
- Consistent Dividend Growth: Despite its distribution yield nearing a five-year low, Enterprise Products Partners maintains a yield above 5.9% and has increased its distribution for 27 consecutive years, recently raising it by 2.8%, reflecting strong financial flexibility and commitment to shareholders.
- High Management Ownership: Approximately one-third of Enterprise's common units are owned by its management and affiliates, which typically indicates a strong alignment of interests and accountability among executives regarding company performance.
See More
High-Yield Stock Picks: Enterprise Products and NextEra Energy
- 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.
See More
Iran War Drives Oil Prices to $93.63 per Barrel
- Oil Price Surge: Following the U.S. and Israel's joint airstrike on Iran, Brent crude futures reached $93.63 per barrel on Wednesday evening, reflecting a 6.6% increase from Tuesday and a 31% rise from the pre-war price of $71, which will exert greater pressure on consumers.
- Consumer Impact: High oil prices are not only driving up gasoline costs but also heating oil prices in older Northeast areas, with rising transportation costs increasing prices for most products, particularly agricultural and heavier goods, thereby exacerbating inflation.
- Historical Trends: Historical data indicates that oil price spikes caused by geopolitical events are typically short-lived, as prices often decline rapidly after combat operations cease, with markets being forward-looking and adjusting even before conflicts fully end.
- Investment Advice: While oil stocks may not be attractive for short-term investments, carefully selected midstream companies like Enterprise Products Partners (EPD) and Enbridge (ENB) could represent appealing long-term income-generating investments due to their financial results being less affected by oil price fluctuations.
See More
Brent Oil Prices Surge to $93.63 Amid Iran Conflict
- Oil Price Surge: As of Wednesday night, Brent crude futures reached $93.63 per barrel, reflecting a 6.6% increase from Tuesday and a 31% rise from the pre-war price of $71, highlighting the significant impact of geopolitical tensions on the market.
- Attractive Midstream Stocks: While investing in oil stocks solely due to the Iran conflict may not be advisable, midstream companies like Enterprise Products Partners (EPD) and Enbridge (ENB) offer appealing long-term investment opportunities with stable yields of 5.91% and 5.31%, respectively, due to their fee-based contracts.
- Inflationary Pressures: Rising oil prices not only increase gasoline costs but also elevate heating oil prices and transportation expenses, leading to higher prices for most goods, particularly agricultural and heavier products, thereby exacerbating inflation risks.
- Historical Trend Insights: Historical data indicates that oil price spikes caused by geopolitical events are typically short-lived, with prices often declining rapidly after combat operations cease, providing crucial market insights for investors to approach oil stock investments with caution in the current climate.
See More
U.S. to Build First Oil Refinery in 50 Years, $300 Billion Deal
- Historic Investment: President Trump announced that the U.S. will get its first oil refinery in 50 years, funded by Indian billionaire Mukesh Ambani's Reliance Industries, with a staggering $300 billion deal marking the largest in U.S. history.
- Enhanced National Security: The new refinery, located at the port of Brownsville, Texas, is designed to process 100% American shale oil, aiming to bolster national security and significantly increase U.S. energy production capabilities.
- Significant Economic Impact: Trump stated that the project will deliver billions of dollars in economic impact, further driving the domestic energy sector's growth and creating numerous job opportunities in related industries.
- Environmental Commitment: The refinery is set to be the cleanest in the world, reflecting a commitment to environmental sustainability while showcasing the U.S.'s strategic shift towards sustainable energy production.
See More
High-Yield Stocks Gain Appeal Amid Market Turbulence
- Brookfield Renewable: Brookfield Renewable is expected to double its revenue from $5.1 billion to $10.7 billion by 2028, driven primarily by the rapid growth of cloud computing and AI markets, while long-term renewable power agreements with Microsoft and Google will further solidify its market position.
- Stable Dividend Yield: Brookfield Renewable offers a forward yield of 5.2%, and although it has not yet achieved consistent profitability, its adjusted EBITDA is projected to grow at an 8% CAGR from 2025 to 2028, indicating strong future earnings potential.
- Enterprise Products Partners: Enterprise Products Partners operates over 50,000 miles of pipeline across 27 states, with an expected operational distributable cash flow of $7.9 billion in 2025, easily covering its $4.8 billion in distributions, ensuring a sustainable 5.9% yield.
- Market Competitive Advantage: While Enterprise Products Partners is less aggressive in expanding its pipeline network compared to competitors, its lower debt levels and stable revenue model provide relative safety and attractiveness in turbulent market conditions.
See More
Middle East Conflicts Catalyze Energy Stock Surge
- Significant Investment Potential: In 2026, as oil and gas prices soared, investors flocked to Enterprise Products Partners (EPD), with its unit price up 16% year-to-date as of March 9, indicating strong investment appeal and market confidence.
- Stable Cash Flow: Enterprise Products Partners has maintained a double-digit return on invested capital (ROIC) every year since 2005, with an average ROIC of 12% over the past decade, demonstrating its stability and resilience across various economic cycles.
- Consistent Dividend Growth: Despite its distribution yield nearing a five-year low, Enterprise Products Partners maintains a yield above 5.9% and has increased its distribution for 27 consecutive years, recently raising it by 2.8%, reflecting strong financial flexibility and commitment to shareholders.
- High Management Ownership: Approximately one-third of Enterprise's common units are owned by its management and affiliates, which typically indicates a strong alignment of interests and accountability among executives regarding company performance.
See More
