Enterprise Products Partners Has Had 28 Consecutive Annual Dividend Increases. Does the Energy Stock Have Enough Fuel to Keep the Streak Going?
The midstream company just raised its dividend by 2.8%. Its payout ratio is around 80%.
Overview
If you're confused about whether the price of oil and natural gas will continue to stay high, join the club. The vicissitudes of oil and natural gas prices have been notoriously noticeable this year. Energy markets have been whipsawed by severe geopolitical shocks in the Middle East, followed by dramatic regulatory resolutions that have triggered sharp price swings.
This year's chaos perfectly demonstrates why some income investors highly prize Enterprise Products Partners' (NYSE: EPD) toll-road business model. While oil and global gas prices swung by nearly 100% and supply chains experienced massive disruptions, Enterprise's volume-driven, fee-based pipelines continued to collect steady fees. The company provides midstream services to producers and consumers of natural gas, natural gas liquids, crude oil, refined products, and petrochemicals, regardless of wild commodity price fluctuations.
Details
As a master limited partnership (MLP), it functions fundamentally differently from an oil driller or exploration company. Here are three compelling reasons to own Enterprise Products Partners stock.
Source
Originally published at www.fool.com.