Dividend Achievers List: Top 15

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

Dividend Yield as of September 22: 7.58%

Enterprise Products Partners L.P. (NYSE:EPD) is a Texas-based midstream natural gas and crude oil pipeline company. It tops our dividend achievers list as the company has been growing its payouts for 26 consecutive years. Currently, it pays a quarterly dividend of $0.525 per share and has a dividend yield of 7.58%, as of September 22.

Unlike many energy companies that depend on commodity prices for their revenue and earnings, Enterprise Products Partners L.P. (NYSE:EPD) generates fees from the use of its assets. As a result, energy demand is more crucial to its performance than the prices of the products transported through its midstream system. This model provides stability since energy demand remains strong even when prices are low. In the second quarter of 2024, the company reported revenue of $13.5 billion, a 27% increase from the same period last year.

In addition to its revenue growth, Enterprise Products Partners L.P. (NYSE:EPD) saw its operating income rise to $1.8 billion in Q2 2024, up from $1.5 billion in the previous year. The company’s strong cash flow supports its dividend payments, generating $1.8 billion in distributable cash flow (DCF) in the latest quarter, an increase from $1.7 billion in the same period last year. Its operating cash flow also rose to $2.1 billion, compared to $1.9 billion in Q2 2023. Furthermore, the company maintains a sustainable payout ratio, which was 55% of the adjusted cash flow from operations for the twelve months ending June 30, factoring in distributions to common unitholders and buybacks of partnership common units.

Of the 912 hedge funds tracked by Insider Monkey at the end of Q2 2024, 23 funds held stakes in Enterprise Products Partners L.P. (NYSE:EPD), which was the same as in the previous quarter. The consolidated value of these stakes is roughly $310 million.

Overall, Enterprise Products Partners L.P. (NYSE:EPD) ranks first on our list. While we acknowledge the potential for EPD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than EPD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. 

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Disclosure: None. This article is originally published at Insider Monkey.