Marc Lichtenfeld has studied the markets for more than 22 years. 6 months ago. It has not yet cut its dividend, implying that it may as yet be safe. Distributable cash flow was $1.6 billion in the first quarter and provided 1.6x coverage of the dividend payment. Today, I will cover the company that I consider to be the safest. With around $7.0 billion in liquidity on hand as of June 15, the business should have no issue funding operations and paying off maturing debt. © Copyright 2021: Income Investors. U.S. Bancorp: Returning Another $3 Billion to Investors? Marc was also a senior columnist at Jim Cramer’s TheStreet. No credit card required. XOM's dividend should remain safe, too, and the payout's growth potential should improve if everything goes well. EPD has storage capacity of “260 MMBbls [million barrels] of NGL, petrochemical, refined products and crude oil.” As for natural gas storage, it currently has a capacity of 14 billion cubic feet. The collapse in oil prices has wiped out billions of dollars in market value from energy-related companies. Many MLPs’ distributions are either on the chopping block or under consideration should things deteriorate further. document.getElementById("date").innerHTML = d.getFullYear(); This prediction for the EPD next dividend date is extrapolated from past data and therefore may or may not be useful as a future predictor depending on company-specific circumstances. If you want safe dividends, focus on partnerships that move, process and store oil and gas. W.P. Just click on “Search” at the upper-right part of the webpage and type in the name of the company. Sufficient coverage significantly lowers the risk of a reduction to the dividend payment. Check out our privacy policy. AllianceBernstein pays out 109.52% of its earnings out as a dividend. In other words, Enterprise Products Partners L.P.’s 10% dividend yield looks safe for now. 11. This 11% Yielder Has the Worst Dividend Safety... Is This Down-and-Out Blue Chip’s Dividend Safe. Published on November 24, 2016 at 2:58 pm by Simply Safe Dividends in Dividend Stocks , News , Stock Analysis He is an author, speaker and financial guru to 500,000 readers who receive his publications each week. British American Tobacco PLC: Cigarette Maker With 7.1% Yield Raises Guidance. That leaves management with a little bit of breathing space in the event of a downturn. Is The Geo Group Inc’s 15.1% Dividend Safe? GlaxoSmithKline plc: A High-Yield Stock You Likely Haven’t Considered, BlackRock TCP Capital Corp: Investors Can Earn a 10.4% Yield. Category: Radio/Podcast Currently, Enbridge pays investors a dividend of $0.738 every quarter, which totals $2.952 for a full year, which is well in excess of its profits and results in a payout ratio of about 120%. First and foremost: EPD is a pipeline company, not a driller. Enterprise Products Partners LP (EPD) has been a much easier stock to hold over the long haul, for several reasons. Let’s dive into the numbers. Enterprise Products Partners’ distribution should be safe for the time being. Marc Lichtenfeld Talks About Gary Cohn’s ResignationOutlet: Fox Business Marc Lichtenfeld Discusses America’s Retirement CrisisOutlet: Bloomberg Radio Your email is safe with us. ... (EPD, $34, 4.3% yield), ... dividend-paying domestic energy stocks is madness and start to … > 12/29/20 . That theory, however, hasn’t worked out in practice. The company has raised its distribution every year since it began paying one in 1998. In other words, Enterprise Products Partners L.P.’s 10% dividend yield looks safe for now. A lot has changed in the world over the past few months, but you wouldn’t … All of which means Enterprise should manage to keep paying unitholders. 1 on Amazon’s best-seller list. EPD's dividend yield, history, payout ratio, proprietary DARS™ rating & much more! That leaves management with a little bit of breathing space in the event of a downturn. We’re starting to get an idea as to how COVID-19 will impact the energy business. That drop has triggered a wave of dividend cuts. The shares went ex-dividend on April 29, but there’s strong indication that future dividends will continue to be paid. Enterprise Products Partners (NYSE: EPD) started in 1968 as a wholesaler of natural gas liquids. Enterprise also boasted a fortress-like balance sheet heading into the downturn. Access to SafetyNet Pro is reserved exclusively for subscribers of Marc’s newsletter, The Oxford Income Letter. As such, the next dividend date prediction is presented for informational purposes only as a research tool. ARMOUR Residential REIT, Inc.: Lock in an 11.3% Yield (Paid Monthly) by January 13? After getting his start on the trading desk at Carlin Equities, he moved over to Avalon Research Group as a senior analyst. EPD Stock: Look at This Safe, Rising, 8.4% Yielder. Over the same period, management paid out $980.0 million. The general policy is a positive for dividend investors, however, as the company has not missed a dividend payment in 43 consecutive quarters – an admirable record. Carey. As one of the largest financial companies in the United States, Bank of America continues to grow at a steady pace. You can opt-out at anytime. So a 61% payout ratio means EPD unitholders have little reason to worry, as long as things don’t get too much worse. Unlike other master limited partnerships, which tend to only invest in pipelines, Enterprise also owns a vast oil storage network. Date: March 22, 2018 Even before the issues facing oil companies were magnified by the OPEC supply shock, … They suggest that even if CAD falls further, the company generates enough cash to pay the distribution.Enterprise Products Partners pays investors $0.445 per quarter, or $1.78 per year. As we discussed in early July when this news was announced, we are upgrading Dominion's Dividend Safety Score to Safe with the lower dividend now in place. A rate cut is a plus for dividend payers because lower yields on so-called “safe” investments, like Treasuries, drive more buyers to dividend stocks. Both numbers are figures I’m very comfortable with. Enterprise and Navigator Begin Service on Houston Ship Channel Ethylene Storage Tank. By submitting your email address, you will receive a free subscription to Wealthy Retirement, and offers from us and our affiliates that we think might interest you. Currently, Marc is the Chief Income Strategist at Wealthy Retirement and The Oxford Club. Thanks to a drop in demand courtesy of the pandemic, storage tanks nationwide have filled almost to capacity. Admittedly, pipelines have struggled more than one might have originally expected. Thank you for subscribing to Wealthy Retirement. Of these 10 companies, only two are rated “A” for distribution safety. Category: Television Even at the height of the crisis, Enterprise signed a deal to boost its bank credit line by $1.0 billion. Dividend.com: The #1 Source For Dividend Investing. Thank you for signing up for Wealthy Retirement. Safe High Dividend Stocks: Key Metrics. If you want to feature Marc, please reach out on our contact page. Dominion made its dividend cut official this week, reducing its fourth-quarter payout by 33% after closing a deal to sell its natural gas transmission and storage business. https://www.incomeinvestors.com/wp-content/uploads/2020/07/oil-pipeline-BASARD8-1-150x150.jpg. AllianceBernstein pays an annual dividend of $2.76 per share, with a dividend yield of 7.87%. This is an entirely free service. Since, the book has gone through 30 printing runs. Welcome! This year, CAD is forecast to decline. Among EPD’s bulls is BMO analyst Danilo Juvane. A few of his appearances are below…. https://www.incomeinvestors.com/is-enterprise-products-partners-l-p-yield-safe/56453/. Dividend Yield (TTM) is a widely used stock evaluation measure. Today, it has 50,000 miles of pipelines, 260 million barrels of storage capacity and 22 natural gas processing plants. Enterprise Products Partners LP (EPD) Dividend Yield: 5.4%. This has left management with much more in the way of financial wiggle room. That 22-year track record of annual payout increases, combined with a comfortable payout ratio, makes it easy to forgive the company’s expected lower CAD this year – especially since it still more than covers the distribution. All rights reserved. In the first quarter of 2020, the partnership’s distributable cash flow dropped to $1.6 billion. Highly leveraged names, such as Plains All American Pipeline, L.P. (NYSE:PAA), CNX Midstream Partners LP (NYSE:CNXM), and Western Midstream Partners LP (NYSE:WES), have all lowered their payouts in a bid to conserve cash. And in 2016, the Institute for Financial Literacy named it “Book of the Year.”. As of March 30, the partnership had only $3.30 in debt for every dollar of earnings before interest, taxes, depreciation, and amortization—less than half the average debt load of its peers. To learn more about SafetyNet Pro and The Oxford Income Letter, click here now. A lot has changed in the world over the past few months, but you wouldn’t know it from the stock market. His readers include teachers... engineers... sound technicians... real estate investors... financial advisors... business developers... law enforcement officers... people from all walks of life. No part of this document may be used or reproduced in any manner or means, including print, electronic, mechanical, or by any information storage and retrieval system whatsoever, without written permission from the copyright holder. Date: March 22, 2018 You can opt-out at anytime. If Enterprise Products Partners hits the $6 billion in CAD that Wall Street expects, it will likely pay investors about 65% of that total in distributions. AB's most recent quarterly dividend payment was made to shareholders of record on Thursday, November 12. Compared to other US stocks that pay a dividend, EPD offers a dividend yield in the top 5.37% of stocks in our set. To learn more about Marc’s books, check out our Best Finance Books. 7 months ago. Find the latest Dividend Yield (TTM) for Enterprise Products Partners L.P. (EPD) He has appeared on CNBC, Fox Business and Yahoo Finance. Look to see how quickly the dividend grows each year, and how reliable that growth is. Payout ratio calculation and chart. You’ll soon read about proven strategies that will enable you to generate income and build the future you want. Dividend Yield. So, can income hunters still trust this dividend? Following the drop in oil prices, producers have dramatically scaled back their drilling programs. Description: Marc appears on Fox Business’ Mornings With Maria segment to discuss Gary Cohn’s resignation. The following seven dividend stocks have strong business models, durable competitive advantages, and high dividend yields above 5% that make them extremely attractive stocks for … (Source: “Form 10-Q,” Enterprise Product Partners, L.P., last accessed July 6, 2020.). Drilling down into Energy Transfer's dividend safety The best high-yield dividend stocks have three things in common: They generate relatively stable cash flow, have a … Which raises the question: Can Enterprise Products Partners L.P.’s 10% dividend yield survive the energy bust? Dividend Safety Rating: A Its payout ratio lands slightly on the high side at 67%, although this should drop to around 60% by year end … Marc’s mission is to help every one of them generate a safe and steady stream of retirement income that never runs out. © Wealthy Retirement From the perspective of conservative income investors, EPD represents a potentially excellent long-term dividend growth stock with 382% better 5-year dividend return potential 255% better 5-year annualized probability-weighted expected returns It remains the best safe … (Source: “Investor Deck,” Enterprise Product Partners, L.P., last accessed July 6, 2020.). About 2-3% is solid, while 4% or higher is fairly high-yield. That has provided a nice hedge to the company’s struggling pipeline business. Analysts worry that a downturn in the oil patch could hammer the pipeline partnership’s profits. The drop in oil prices has hammered units of pipeline giant Enterprise Products Partners L.P. (NYSE:EPD). This is an entirely free service. Description: Marc makes a guest appearance on Bloomberg Radio to discuss America’s retirement crisis. | 877.808.9795 | 443.353.4621 | 105 W Monument Street | Baltimore, MD 21201. Last week, I covered Energy Transfer (NYSE: ET), one of the most popular master limited partnerships (MLPs). Turning to the company’s dividend — it currently yields a very generous 9.15%. Enterprise Products Partners (EPD) is one of North America's largest midstream master limited partnerships, with about 50,000 miles of natural gas, natural gas liquids (NGL), crude oil, refined products, and petrochemical pipelines. Dividend Safety Rating: A If you have a stock whose dividend safety you’d like me to analyze, leave the ticker symbol in the comments section. But Enterprise Products Partners L.P. has held up better than most. The company's dividend is not at risk. SafetyNet Pro is a groundbreaking tool that predicts dividend cuts with stunning accuracy. No credit card required. Is The Geo Group Inc’s 15.1% Dividend Safe? However, even with the projected lower CAD, Enterprise can still easily cover the distribution (MLPs pay distributions, not dividends). Click Here to See a Full List of Marc's Appearances, Marc Lichtenfeld’s first book, Get Rich With Dividends: A Proven System for Double-Digit Returns, achieved best-seller status after its release in 2012. That comes out to a 9.5% yield. You can also search Wealthy Retirement to see if I’ve covered your favorite stock. Starwood Property Trust, Inc.: 10.4% Dividend Yield Hard to Ignore. Your free report will be delivered to your inbox. That has triggered a wave of dividend cuts and bankruptcies, with analysts expecting more bad news to come in the weeks ahead. All investments carry risk and results are not guaranteed. So in theory, that should allow pipeline owners to remain profitable whether oil trades for $20.00 a barrel or $200.00. Enterprise primarily makes most of its money from fees it charges E&P cu… This is an entirely free service. Is Enterprise Products Partners L.P.'s 10% Yield Safe? That makes it a safe stock in 2020 from a dividend paying perspective. Find the latest dividend history for Enterprise Products Partners L.P. Common Stock (EPD) at Nasdaq.com. var d = new Date(); EPD currently yields 10.6%. With it, you can determine the dividend safety rating of nearly 1,000 stocks. Dividing the annual dividend/distribution by the existing stock/unit price gives you the dividend yield. That has triggered an investor exodus, with EPD units losing almost a third of their value since the start of the pandemic. Enterprise Products Partners L.P. (NYSE:EPD) is no exception. Kimberly Clark Corp: Is Recent Pullback an Opportunity for Dividend Investors? In early 2018, Marc released his second book, You Don’t Have to Drive an Uber in Retirement: How to Maintain Your Lifestyle without Getting a Job or Cutting Corners, which hit No. They have done this in a patient manner, finally attracting Warren Buffet as a chief investor. Predicted Next Dividend Ex-Date For EPD: April 29th. The company has grown its dividend for the last 1 consecutive years and is increasing its dividend by an average of 2.20% each year. No credit card required. Of 7.87 % 1968 as a wholesaler of natural gas liquids tend to only invest pipelines! The markets for more than 22 years which Raises the question: can Enterprise Partners. Admittedly, pipelines have struggled more than 22 years even with the projected lower CAD, also... Investor exodus, with EPD units losing almost a third of their profits as.. On Houston Ship Channel Ethylene storage Tank search ” at the upper-right part the. Dividend grows each year, and terminals idea as to how COVID-19 impact... 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