Enterprise Products Partners stock: Buy this 7.5% yielding machine

July 11, 2023 09:16 AM PDT | By Invezz

Enterprise Products Partners stock: Buy this 7.5% yielding machine — Image source: Invezz

A good dividend investment

Enterprise Products Partners is a large company valued at over $57 billion. It is a leading MLP that runs thousands of kilometers of pipelines in the US. In addition to pipelines, the company owns 29 natural gas processing plants and 25 natural gas liquids fractionation plants.

Therefore, the company has done well since the war in Ukraine started last year since most European countries have boosted their American natural gas imports. These imports are set to continue for a long time.

Enterprise Partners, like other MLPs, is invested in because of the giant dividends it pays to its investors. It has a dividend yield of over 7%, which is higher than the average bond yields today. Therefore, most of its biggest investors are retirees and income-focused investors.

Enterprise Products Partners is also loved because it is not correlated to crude oil and natural gas prices. In most cases, oil and gas companies like Shell, BP, and Exxon do well when oil and gas prices rise and vice versa.

MLPs, on the other hand, tend to make money in all market conditions because of their long contracts. As a result, while most oil and gas companies made a loss in 2020, the company’s net income dropped to $3.89 billion from the previous $4.69 billion.

EPD is a good quality company that has a strong balance sheet and safe dividend. Also, the company is set to generate more revenue and income when it completes its ongoing projects.

Enterprise Products Partners stock price forecast

EPD chart by TradingView

In my previous article on EPD, I predicted that the shares had more upside if it cleared the resistance at around $26.70. Nothing much has happened since I published that report. The stock is still sitting at that resistance, which is also the upper side of the ascending triangle pattern shown in green.

The shares have moved above all moving averages and the Ichimoku cloud. Therefore, the outlook for the stock is still bullish because of the ascending triangle pattern. If this happens, the shares will next rise to the resistance point at $60.

The post Enterprise Products Partners stock: Buy this 7.5% yielding machine appeared first on Invezz.

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