Reasons Behind the Stability of Enterprise Products Partners' 7.2% Dividend Yield
Sunday, 10 March 2024, 09:11
What does Enterprise do?
Enterprise operates in the energy sector as a midstream player, maintaining a robust energy infrastructure that generates consistent cash flows. The company's investment-grade balance sheet and low leverage set it apart from peers, ensuring financial stability.
Why Enterprise's Yield Is Reliable:
- Enterprise has an investment-grade rated balance sheet.
- Enterprise has low leverage relative to peers.
- Enterprise covered its distribution by 1.7 times.
- Enterprise is buying back units.
With these factors in place, Enterprise's high dividend yield remains secure, making it an attractive addition to income-focused portfolios.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.