5 Dividend Giants with Lowest Short Interest

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

Short % of Float as of February 14: 0.88%
Dividend Yield as of March 7: 7.55%

Enterprise Products Partners L.P. (NYSE:EPD) is a natural gas and crude oil company, based in Texas, US. In March, Scotiabank upgraded the stock with an Outperform rating and a $31 price target, presenting a positive stance on the sector’s outlook this year.

As of February 14, Enterprise Products Partners L.P. (NYSE:EPD) had 0.88% of its float sold short, which makes it one of the dividend giants with the lowest short interest.

Enterprise Products Partners L.P. (NYSE:EPD) has been raising its dividend consistently for the past 23 years. The company offers a quarterly dividend of $0.49 per share and has a dividend yield of 7.55%, as of March 7.

At the end of Q4 2022, 24 hedge funds tracked by Insider Monkey reported owning stakes in Enterprise Products Partners L.P. (NYSE:EPD), up from 21 in the previous quarter. The collective value of these stakes is over $242.4 million.

Legacy Ridge Capital Management, LLC mentioned Enterprise Products Partners L.P. (NYSE:EPD) in its Q4 2022 investor letter. Here is what the firm has to say:

“Enterprise Products Partners L.P. (NYSE:EPD) is still owned in the fund and remains one of our largest positions, as it has been since the partnership was founded. This has not been a great investment. Shares are down about 6% since I first wrote about it. However, we have received $8.93 per share in dividends, which is about 34% of the 2018 share price. So, with dividends included we’ve made 28% cumulatively over 5-years. Still not good, but not an impairment of capital either.

Since 2018, EPD’s dividend yield has gone from 6.5% to 8% with the annual per share payout growing from $1.72 to $1.96, +14%. The pace of dividend growth has recently increased from about 2% to 5%+. Additionally, Distributable Cash Flow per share (what could be paid to us if management wanted to) has increased 22%, from $2.73 to $3.33, while leverage has come down a little over ½ a turn. So, the balance sheet and cash flow metrics are in better shape than they were 5-years ago, and they were pretty good 5-years ago.

The competitive dominance of the asset base, industry leading low leverage, and a founding family with multiple billions of dollars invested alongside us keep it a core holding in the portfolio. We’ll continue to own this company unless the shares become meaningfully overvalued, and if it gets cheaper, we would be very comfortable owning more.”