Dividend-paying stocks are a viable option for investors seeking regular passive income, and Enterprise Products Partners (NYSE:EPD) is one such top bet. The company provides midstream energy services to oil and gas producers and boasts a stellar track record of dividend payments and growth. For instance, EPD has increased its dividend for 25 consecutive years, which has earned it the title of a Dividend Aristocrat (learn more about Dividend Aristocrats here). What stands out is that Wall Street analysts are also bullish about EPD’s prospects.
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Let’s delve deeper into this high-yield Dividend Aristocrat to understand why it is a solid income stock.
EPD: A Dependable Income Stock
The primary reason why Enterprise Products Partners is a dependable income stock is the durability of its dividend payments and growth. The company consistently generates strong financials due to the steady demand for its offerings, which enables it to enhance its shareholders’ returns via a higher dividend distribution.
Earlier this year, EPD increased its quarterly dividend by 5.3% year-over-year to $0.50 per share. Moreover, the company has increased its dividend for 25 consecutive years at a CAGR of 7%. Besides for its solid dividend growth history, the company offers a compelling yield of 7.62%, supporting its bull case.
What is the Forecast for EPD Stock?
As discussed earlier, Wall Street analysts are bullish about EPS’s prospects. Moreover, their average price target indicates decent upside potential from current levels.
EPD stock has seven Buy and two Hold recommendations for a Strong Buy consensus rating. Further, the average EDP stock price target of $31.78 implies 22.32% upside potential from current levels.
Bottom Line
EPD, with its solid dividend growth history and high yield, is an attractive income stock. Moreover, the company’s diversified assets, investments in high-growth projects, and steady demand for its services augur well for future dividend payouts. This is reflected in the analysts’ Strong Buy consensus rating.
