Crude oil prices are now over $64 a barrel, following OPEC’s announcement of a cutback in production, asserts growth and income expert Mark Skousen, editor of Forecasts & Strategies.
Enterprise Products Partners (EPD), a Houston-based pipeline and energy storage and export company, is benefiting from higher oil prices.
The stock is ahead 22% this year, including its ever-rising dividend. Last month, it announced its 59th quarterly increase in a row to 43.75 cents per share.
Enterprise Partners is one of the largest master limited partnerships (MLPs) in the pipeline sector and offers investors an outsized yield that’s currently 6.2%.
This payout also is on solid ground, since Enterprise Products Partners has secured long-term contracts to lock in more than 85% of its earnings.
Moreover, the company has one of the best balance sheets among MLPs, a low payout ratio and an unbelievable rising dividend policy. It has a multi-billion dollar expansion program underway that should enable Enterprise Products Partners to continue its dividend growth streak, which now stretches more than 20 years.
Enterprise Products boasts of an extensive network of pipelines that spread across nearly 50,000 miles. Importantly, the pipeline network is connected to every major U.S. shale play and provides services to producers and users of commodities by transporting gas, liquids and refined products.
