Is Enterprise Products Partners L.P. (EPD) The Best High Dividend Stocks Under $100?

Enterprise Products Partners L.P. (EPD) has long been a favorite among income investors, thanks to its consistent dividend growth and attractive yield. But is it the best high dividend stock under $100? Let's examine EPD's dividend history, growth prospects, and compare it to other high-yielding stocks to find out.

EPD's Dividend History and Growth

EPD has a strong track record of increasing its dividend, having raised it for 27 consecutive years. The company's quarterly cash distribution has grown from $0.28 per unit in 2018 to $0.525 per unit in 2024, representing a compound annual growth rate (CAGR) of approximately 10%. This consistent dividend growth has made EPD a Dividend Aristocrat, a title reserved for S&P 500 companies that have increased their dividends for at least 25 consecutive years.



EPD's Dividend Yield and Payout Ratio

As of January 24, 2025, EPD's forward dividend yield is 6.37%, significantly higher than the average yield of the Energy sector (4.2%) and the S&P 500 (1.58%). EPD's forward payout ratio is 73.18%, which is on the high end but still manageable, given the company's strong cash flow generation and stable earnings.

EPD's Growth Prospects

EPD's growth prospects are supported by its diversified revenue streams, expanding infrastructure, and strong financial performance. The company is planning approximately $6.9 billion in growth capital projects through 2026, which should drive future growth and cash flow generation. Additionally, EPD's strong balance sheet and healthy debt-to-equity ratio (1.03) indicate its ability to maintain and grow its dividend payouts.

Comparing EPD to Other High-Yield Stocks

To determine if EPD is the best high dividend stock under $100, let's compare it to a few other high-yielding stocks:

1. AT&T Inc. (T)
* Dividend Yield: 7.5%
* Dividend History: AT&T has increased its dividend for 36 consecutive years.
* Growth Prospects: AT&T's dividend growth has been modest in recent years, with a 2% increase in 2024. The company faces challenges in the telecommunications industry, but its strong balance sheet and cash flow generation support its dividend.
2. ExxonMobil Corporation (XOM)
* Dividend Yield: 5.8%
* Dividend History: ExxonMobil has increased its dividend for 37 consecutive years.
* Growth Prospects: ExxonMobil's dividend growth has been more robust than AT&T's, with a 6% increase in 2024. The company benefits from its strong position in the energy sector and its ability to generate significant cash flows.
3. Chevron Corporation (CVX)
* Dividend Yield: 5.2%
* Dividend History: Chevron has increased its dividend for 33 consecutive years.
* Growth Prospects: Chevron's dividend growth has been steady, with a 6% increase in 2024. The company's strong financial performance and cash flow generation support its dividend growth.

While EPD's dividend yield is lower than AT&T's, it is still attractive compared to other high-yielding stocks under $100. EPD's dividend history, growth prospects, and strong financial performance make it a compelling choice for income investors.

In conclusion, Enterprise Products Partners L.P. (EPD) is an attractive high dividend stock under $100, thanks to its consistent dividend growth, attractive yield, and strong growth prospects. While other high-yielding stocks may have higher yields or longer dividend histories, EPD's combination of factors makes it a strong contender for income investors seeking a stable and growing income stream. As always, it is essential to conduct thorough research and consider your investment goals and risk tolerance before making any investment decisions.