10 Energy Stocks with Fat Dividends

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

Dividend Yield as of April 18: 6.9%

Topping our list of Energy Stocks with Fat Dividends is Enterprise Products Partners L.P. (NYSE:EPD), one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products, and petrochemicals.

Enterprise Products Partners L.P. (NYSE:EPD) had a strong Q4 2024 as its adjusted EPS of $0.74 topped market expectations by $0.04. The company’s revenue of $14.2 billion was also above estimates by $74.57 million, despite being down 2.88% YoY. EPD posted record midstream volumes in 2024, due to natural gas and NGLs volume growth in the Permian Basin. The company’s distributable cash flow for FY 2024 came in at a record $7.8 billion, up from $7.6 billion in 2023. Moreover, EPD revealed that it expects to complete $6 billion of major organic growth projects in 2025, which should contribute significantly to its cash flow.

Enterprise Products Partners L.P. (NYSE:EPD) paid out approximately $4.8 billion in cash distributions to limited partners in 2024, resulting in a payout ratio of 55%. The company announced its 27th consecutive annual dividend increase in January 2025 and currently pays a quarterly dividend of $0.535 per share.

Overall, Enterprise Products Partners L.P. (NYSE:EPD) ranks first on our list of the best energy stocks with fat dividends. While we acknowledge the potential of EPD as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than EPD but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.

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