13 Best Dividend Stocks to Buy Under $50

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

Number of Hedge Fund Holders: 25

Share Price as of the Close of December 20: $30.99

Enterprise Products Partners L.P. (NYSE:EPD) is a Texas-based midstream natural gas and crude oil pipeline company that offers petrochemicals and related products. The company has gained traction among investors because of its solid cash position. In the most recent quarter, it generated $2.1 billion in operating cash flow, reflecting a 4% year-over-year increase. Distributable cash flow reached $2 billion, marking a 5% rise compared to the same period last year. Over the twelve months ending September 30, 2024, the company utilized 56% of its Adjusted Cash Flow from Operations (CFFO) for distributions to common unitholders and the buyback of partnership common units.

This cash position has allowed Enterprise Products Partners L.P. (NYSE:EPD) to grow its dividend for 26 consecutive years. On October 2, it declared a quarterly dividend of $0.525 per share, which was in line with its previous dividend. The stock’s dividend yield on December 23 came in at 6.77%.

In addition to its dividend, Enterprise Products Partners L.P. (NYSE:EPD) also reported strong earnings in the third quarter of 2024. The company posted revenue of $13.78 billion, marking a nearly 15% increase compared to the same period last year. However, the revenue fell short of analysts’ expectations by over $97 million. The company’s operating income was $1.78 billion, and net income reached $1.43 billion, reflecting year-over-year growth from $1.7 billion and $1.3 billion, respectively.

Enterprise Products Partners L.P. (NYSE:EPD)’s stability stems from its largely fee-based business model, which reduces its exposure to commodity and spread risks. Approximately 90% of its contracts feature inflation-adjustment provisions. Moreover, the company has consistently taken a conservative stance on leverage, maintained strong distribution coverage, and carefully managed its growth capital expenditures.

Insider Monkey’s database of Q3 2024 indicated that 25 hedge funds held stakes in Enterprise Products Partners L.P. (NYSE:EPD), growing from 23 in the previous quarter. These stakes are worth nearly $316 million in total.