Dividend Champions List: Top 15

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

Dividend Yield as of September 24: 7.12%

Enterprise Products Partners L.P. (NYSE:EPD) is a Texas-based midstream natural gas and crude oil pipeline company that offers related products and petrochemicals. The company is a strong dividend payer, having raised its dividends for 26 consecutive years. Its quarterly dividend currently sits at $0.525 per share for an impressive dividend yield of 7.12%, as of September 24.

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

Enterprise Products Partners L.P. (NYSE:EPD) also saw its operating income rise to $1.8 billion in Q2 2024, up from $1.5 billion in the previous year. Its robust cash flow supports its dividend payments, with the company 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. Operating cash flow was $2.1 billion, compared to $1.9 billion in Q2 2023. Additionally, the company maintains a sustainable payout ratio; for the twelve months ending June 30, the payout ratio, which includes distributions to common unitholders and buybacks of partnership common units, stood at 55% of the adjusted cash flow from operations.

Of the 912 hedge funds tracked by Insider Monkey at the end of Q2 2024, 23 funds owned stakes in Enterprise Products Partners L.P. (NYSE:EPD). These stakes are worth $310 million in total.