This "Boring" Pipeline Stock Has Never Cut Its Dividend. Here's the 1 Number I'd Watch.
This pipeline MLP's approach to cash flow distribution is key to its dividend growth streak.
Overview
Enterprise Products Partners (NYSE: EPD) has raised its quarterly distributions for 29 consecutive years, never once reducing its payout. Despite midstream energy's steadiness relative to other segments of the energy sector, a track record of zero dividend cuts or suspensions is quite rare among pipeline stocks. Other large pipeline master limited partnerships (MLPs), including Plains All American Pipeline and Energy Transfer, have had to cut their distributions in the past.
A key reason for Enterprise's strong record is its approach to cash flow distribution. By taking a more cautious approach, this MLP's unitholders could continue to benefit from its payout consistency.
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Source
Originally published at www.fool.com.