3 Reasons to Buy Enterprise Products Partners Stock Like There's No Tomorrow
Wesley ParkTuesday, Jan 21, 2025 5:41 am ET


As an investor, you're always on the lookout for stable, predictable investments that can weather market volatility and sector-specific risks. One company that stands out in this regard is Enterprise Products Partners L.P. (EPD). With its diverse portfolio of midstream assets and services, EPD offers a compelling case for investors seeking long-term growth and income. Here are three reasons to buy EPD stock like there's no tomorrow:
1. Diversified Revenue Streams and Geographic Exposure: EPD operates in four segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services. This diversification ensures that the company's revenue is not solely dependent on a single commodity or sector. Additionally, EPD's assets are spread across various regions in the United States, including Colorado, Louisiana, Mississippi, New Mexico, Texas, and Wyoming. This geographic diversification helps mitigate risks associated with regional market fluctuations and regulatory changes. By investing in EPD, you gain exposure to a broad range of energy commodities and markets, reducing your portfolio's vulnerability to sector-specific risks.
2. Strong Dividend History and Growth: EPD has a strong track record of increasing its distributions, with 51 consecutive quarters of growth. The annual dividend has grown from $1.02 per share in 2010 to $2.10 per share in 2024, representing a compound annual growth rate (CAGR) of approximately 10.5% over the period. The current dividend yield is 6.26%, which is attractive compared to the average yield of the S&P 500 and other midstream companies. EPD's commitment to returning capital to shareholders, combined with its strong cash flow generation, makes it an attractive choice for income-oriented investors.
3. Expansion into Growing Markets and Renewable Energy: EPD has been expanding its infrastructure to capitalize on growth opportunities in the U.S. petrochemical industry and hydrocarbon export markets. This expansion exposes the company to new, growing markets, further enhancing its long-term growth prospects. Additionally, EPD is investing in renewable energy projects, such as solar-powered metering stations and solar projects under commercial development. These investments not only contribute to EPD's long-term growth but also help mitigate risks associated with the transition to a lower-carbon economy.
In conclusion, EPD's diverse portfolio of midstream assets and services, strong dividend history and growth, and expansion into growing markets and renewable energy make it an attractive investment for long-term growth and income. By investing in EPD, you gain exposure to a broad range of energy commodities and markets, reducing your portfolio's vulnerability to sector-specific risks. Don't miss out on this opportunity to buy EPD stock like there's no tomorrow.
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