We recently published a list of 15 Best Low Priced Dividend Stocks to Buy Now. In this article, we are going to take a look at where Enterprise Products Partners L.P. (NYSE:EPD) stands against other best low priced dividend stocks to buy now.
Concerns over an escalating trade war and rising geopolitical tensions have triggered waves of selling in stock markets over the past week. The United States has been at the center of these developments, as President Donald Trump intensified his rhetoric on trade tariffs, which are expected to raise costs for both consumers and businesses domestically and abroad.
Since reaching a peak in mid-February, the broader market—an index tracking America’s largest companies—has declined by 7.3% as of March 17 and is down 3% for 2025. Meanwhile, the Nasdaq, which focuses on technology stocks, has fallen 7.2% this year. As a result, the US market has now dropped below its levels prior to the so-called “Trump bump” in November, when Trump’s election victory initially drove markets higher.
READ ALSO: 10 Defensive Dividend Stocks To Buy During Market Sell Off
The year 2025 has been marked by significant events, ranging from corporate earnings and guidance updates to concerns surrounding DeepSeek and the fluctuating stance on tariffs by President Donald Trump. These developments have contributed to heightened market volatility, creating uncertainty for investors. A report by Morningstar suggested that investors should prioritize fundamental analysis, adopt a long-term perspective, and remain mindful of valuations. In line with this approach, the firm’s analysts continue to assess the long-term fundamentals shaping sector outlooks and evaluate the key assumptions driving valuation models. Given the ongoing uncertainty surrounding the potential implementation of tariffs, adjustments to projections and valuations will be made once there is greater clarity on the extent of the tariffs and their expected duration.
Dividend stocks have gained popularity during market downturns, as they offer shareholders a steady source of income. Following a period where growth stocks dominated, interest in dividend investing has been on the rise. According to a report by Franklin Templeton, US-listed dividend-focused exchange-traded funds (ETFs) saw a significant increase in investor interest, with average monthly net inflows reaching nearly $3.3 billion in the six months leading up to January 31, 2025. This marks a sharp contrast to the $107 million recorded during the same period the previous year.
Amid an uncertain global economic environment, investors are gravitating toward more stable assets to create balanced portfolios. Dividend stocks, particularly those backed by strong fundamentals, are known for generating consistent and predictable cash flows. Since these cash flows play a crucial role in equity valuation models, determining the intrinsic or fair value of dividend-paying stocks is generally more straightforward than valuing growth stocks.
The Dividend Aristocrat Index, which tracks the performance of companies with at least 25 consecutive years of dividend growth, has surged by over 3% in 2025, so far, compared with a nearly 3% decline of the broader market, as of the close of March 17.
Our Methodology
For this list, we screened for dividend stocks with forward P/E ratios of less than 21 and share prices below $50, as of March 17. From the group, we picked 15 companies for their robust financial health, consistent dividend track records, and stable balance sheets, making them attractive options for income-focused investors. The stocks are ranked according to their share prices, as of the close of March 17.
At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Aerial view of a refinery tower surrounded by the sprawling landscape of pipelines in an oil & gas midstream facility.
Enterprise Products Partners L.P. (NYSE:EPD)
Share Price as of the Close of March 17: $33.89
Forward P/E Ratio as of March 17: 11.35
Enterprise Products Partners L.P. (NYSE:EPD) ranks seventh on our list of the best low priced stocks that pay dividends. The midstream natural gas and crude oil pipeline company stands out in the midstream sector as one of the few companies with an investment-grade credit rating, while also maintaining one of the lowest debt ratios among its peers. This financial stability results in minimal investment risk, especially given the midstream industry’s reliable nature, often likened to utilities. The company’s prudent management approach further enhances its stability, making it a secure investment choice. Its strong fourth-quarter performance has reinforced analysts’ positive growth outlook.
In the fourth quarter of 2024, Enterprise Products Partners L.P. (NYSE:EPD) reported revenue of $14.2 billion, exceeding analysts’ expectations by $74.5 million. Its operating income reached $1.9 billion, while net income stood at $1.63 billion.
The company continued to generate strong cash flow, with operating cash flow surpassing $2.3 billion during the quarter and adjusted free cash flow amounting to $336 million. This financial strength enabled EPD to announce its 27th consecutive annual dividend increase in January 2025. It currently pays a quarterly dividend of $0.535 per share and has a dividend yield of 6.31%, as of March 17.
Over the past year, Enterprise Products Partners L.P. (NYSE:EPD) has gained nearly 18%, entering a growth phase fueled by rising demand for natural gas liquids (NGL) exports and increasing electricity consumption linked to AI. The company currently has $6.9 billion in expansion projects underway and expects AI-driven energy needs to drive further demand for natural gas. With an extensive pipeline and storage network, Enterprise is well-positioned to capitalize on these trends. It has also highlighted its strong presence in the Dallas-Fort Worth and San Antonio regions, which are emerging as key data center hubs.
Overall, EPD ranks 7th on our list of best low priced dividend stocks to buy now. 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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Disclosure: None. This article is originally published at Insider Monkey.