3 Dividend Stocks To Consider With Up To 7.2% Yield
AInvestMonday, Dec 9, 2024 8:18 pm ET
9min read
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As investors seek high-yielding investments, dividend stocks remain an attractive option. With the potential for significant returns and a steady income stream, dividend stocks can be a valuable addition to any portfolio. In this article, we will explore three dividend stocks with yields up to 7.2% that investors may want to consider.



1. Enterprise Products Partners (EPD)
Enterprise Products Partners is a midstream energy company that operates pipelines and other assets. Its primary revenue streams include transportation, processing, and storage services for natural gas, crude oil, and refined products. EPD's business model is based on long-term, fee-based contracts, which provide stable cash flows and enable the company to maintain and grow its dividend. EPD has increased its dividend for 23 consecutive years, with a current yield of 7.2%.

2. Enbridge (ENB)
Enbridge is another midstream energy company that operates pipelines and other assets. Its primary revenue streams are similar to EPD's, focusing on transportation, processing, and storage services for crude oil, natural gas, and refined products. ENB's business model is also based on long-term, fee-based contracts, which provide stable cash flows and enable the company to maintain and grow its dividend. ENB has increased its dividend for 26 consecutive years, with a current yield of 7.4%.

3. Energy Transfer (ET)
Energy Transfer is a midstream energy company that operates pipelines and other assets. Its primary revenue streams include transportation, processing, and storage services for natural gas, crude oil, and refined products. ET's business model is based on long-term, fee-based contracts, which provide stable cash flows and enable the company to maintain and grow its dividend. ET has increased its dividend for 11 consecutive years, with a current yield of 9%.


These companies' competitive advantages and market positions play a significant role in their ability to maintain and grow their dividends. Enterprise Products Partners (EPD) and Enbridge (ENB) are both midstream energy companies with extensive pipeline networks, providing them with stable cash flows and the ability to pass on cost increases to customers. This allows them to navigate market fluctuations and maintain their dividend payouts, making them attractive options for income-oriented investors. Devon Energy (DVN), an independent oil and natural gas exploration and production company, benefits from its strong balance sheet and operational efficiency, enabling it to generate consistent free cash flow and maintain its dividend, which has grown for 11 consecutive years.

To ensure long-term sustainability, these companies balance capital expenditure, debt management, and dividend payouts through strategic planning and efficient allocation of resources. They prioritize reinvesting in their businesses to maintain competitive advantages and grow earnings, while also maintaining a strong balance sheet to manage debt levels. By carefully managing their capital structure and cash flows, these companies can sustainably pay dividends to shareholders without compromising their long-term growth prospects.

In conclusion, investors seeking high-yielding investments may want to consider the three dividend stocks discussed in this article. With yields up to 7.2% and a history of dividend growth, these companies offer attractive income opportunities for investors. However, it is essential to conduct thorough research and consider multiple factors before making any investment decisions. By doing so, investors can build a diversified portfolio that balances risk and return, positioning themselves for long-term success in the market.
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