Hillcrest Energy Technologies. (CSE: HEAT)
From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power a more sustainable and electrified future.
Enterprise Products Partners (EPD) has ample momentum to continue increasing dividends, currently boasting a dividend yield exceeding 7%. For those seeking a lucrative and steadily growing source of passive income, this stock is an excellent choice.
The company excels in enhancing cash distribution to investors. It has increased dividends twice this year and raised dividends by 5% over the past 12 months, maintaining a long history of dividend growth. This year marks the 26th consecutive year of dividend growth for the stock.
Recently, Enterprise Products Partners paid a quarterly dividend of $0.525 per unit ($2.10 annually). This represents a 2% increase from the previous quarter and a 5% increase from the same period last year. The company has been increasing dividends annually since its initial public offering (IPO) 26 years ago.
Several factors contribute to this sustained growth for the company. Firstly, the midstream company generates very stable cash flows due to its diversified midstream asset portfolio, including pipelines, processing plants, storage terminals, export complexes, and petrochemical facilities.
The dividend payout ratio for the stock is approximately 52% of operating cash flow, which is considered conservative for a midstream company. Over the past 12 months, Enterprise Products Partners generated $8.4 billion in adjusted operating cash flow and distributed $4.4 billion to investors.
Enterprise Products Partners boasts one of the best balance sheets in the midstream industry, with an A-grade credit rating and a low leverage ratio of 3.0 times. Consequently, the company can secure operational funding and expansion at lower rates and better terms.
The company continues to seek new growth opportunities. For instance, it recently announced plans to advance a significant expansion project along the Houston Ship Channel. The project, slated to come online by the end of 2026, will increase its propane and butane export capability by 300,000 barrels per day. The company also has several other projects in development, including port terminals, which could drive growth post-2026.
In conclusion, Enterprise Products Partners possesses the strongest financial position in the midstream industry and has significant room for future growth. As such, this energy stock presents a compelling choice for those seeking an attractive and steady income source.
