10 Best Dividend Stocks Yielding at Least 7% According to Hedge Funds

6. Enterprise Products Partners L.P. (NYSE:EPD)

Number of Hedge Fund Holders: 23

Dividend Yield as of May 28: 7.34%

Enterprise Products Partners L.P. (NYSE:EPD) is next on our list of the best dividend stocks with over 7% yield. The Texas-based midstream natural gas and crude oil pipeline company has been rewarding shareholders with growing dividends for the past 25 years. Currently, it pays a quarterly dividend of $0.515 per share and has a dividend yield of 7.34%, as recorded on May 28.

Enterprise Products Partners L.P. (NYSE:EPD)’s cash position remained strong in the first quarter of 2024 with its distributable cash flow of $1.9 billion. The company generated $2.1 billion in adjusted cash flow from operations (CFFO), up from $2 billion during the same period last year. Its dividend payments appear secure, given that its payout ratio was 56% of its Adjusted (CFFO).

Following a period of decline, the energy sector has regained momentum this year. Enterprise Products Partners L.P. (NYSE:EPD)  is consistently taking advantage of the growing production of both crude oil and natural gas. The company reported pipeline volumes for natural gas liquids, crude oil, refined products, and petrochemicals amounted to 7.4 million barrels per day (BPD), up from 7.1 million BPD in the prior year period. Moreover, Enterprise Products Partners L.P. (NYSE:EPD) is continually dedicating resources to follow growth opportunities. For 2024 and 2025, the company expects its growth capital investments within the range of $3.25 billion to $3.75 billion. The stock has a forward P/E ratio of 10.54, compared with an industry average of 12.13. Given its recent strong results and solid earnings outlook, we consider EPD undervalued at its current share price.

According to Insider Monkey’s database of Q1 2024, 23 hedge funds held stakes in Enterprise Products Partners L.P. (NYSE:EPD), the same as in the previous quarter. The consolidated value of these stakes is nearly $310 million.