Enterprise Products Partners L.P. Increases Dividend for 26th Straight Year, Boasts 6.92% Yield

Enterprise Products Partners L.P. (NYSE:EPD) recently increased its quarterly dividend to $0.545 per share, marking its 26th consecutive year of dividend growth. The company reported a 5% YoY increase in distributable cash flow to $2 billion in Q1 2025, with $7.6 billion of major growth projects in its backlog. Enterprise Products Partners boasts a 6.92% annual dividend yield and a 5-year revenue growth rate of 13.34%.

Enterprise Products Partners L.P. (NYSE:EPD) has recently announced an increase in its quarterly dividend to $0.545 per share, marking its 26th consecutive year of dividend growth. This significant milestone underscores the company's commitment to providing stable income to its investors. The increase brings the annualized dividend yield to 6.92%, which is well above the sector average and the broader market's yield of 1.5% [1].

In the first quarter of 2025, EPD reported a 5% year-over-year increase in distributable cash flow to $2 billion, highlighting the company's robust financial performance. This strong cash flow supports the company's dividend and growth plans. EPD's impressive growth pipeline includes a $7.6 billion backlog of major projects, which are expected to add significant incremental cash flow by 2026 [1].

The company's revenue growth over the past five years has been remarkable, with a 13.34% compound annual growth rate. This growth is driven by the company's fee-based revenue model, which insulates it from commodity price volatility. EPD's 80% fee-based revenue model ensures that its cash flows are less susceptible to fluctuations in oil and gas prices, providing a stable foundation for its dividend payments [2].

EPD's strong balance sheet is another key factor contributing to its investment appeal. The company's debt-to-equity ratio of 1.07 exceeds midstream norms but is mitigated by long-dated debt maturities and investment-grade credit ratings. EPD's $3.6 billion liquidity buffer and 10x interest coverage ratio further underscore its financial flexibility and ability to weather temporary cash flow hiccups [1].

The company's recent dividend increase and strong financial performance have not gone unnoticed by institutional investors. IFP Advisors Inc. reduced its position in EPD by 9.5% during the first quarter of 2025, while several other institutional investors, including Security National Bank, Alpine Bank Wealth Management, and Lee Danner & Bass Inc., have increased their stakes in the company [3].

In conclusion, Enterprise Products Partners L.P. continues to be a standout performer in the midstream energy sector. Its impressive dividend growth, strong balance sheet, and robust growth pipeline make it an attractive investment for income-focused investors. However, investors should be aware of potential regulatory headwinds and commodity volatility, which could impact the company's performance. Despite these risks, EPD's track record and strategic advantages position it as a top choice for investors seeking stability and growth in the energy sector.

References:
[1] https://www.ainvest.com/news/enterprise-products-partners-epd-high-yield-dividend-powerhouse-midstream-energy-2507/
[2] https://www.ainvest.com/news/enterprise-products-partners-epd-a-dividend-dynamo-in-midstream-mlp-sector-25071010e7f0a158bcff5e20/
[3] https://www.marketbeat.com/instant-alerts/filing-ifp-advisors-inc-sells-9935-shares-of-enterprise-products-partners-lp-nyseepd-2025-07-21/