At the current distribution of $0.56 per quarter ($2.24 a year), 1,000 units of Enterprise Products Partners would pay $2,240 annually, a 5.7% yield at its recent unit price. In the third quarter, distributable cash flow from normal operations rose 27% from a year earlier to $2.3 billion, covering the current distribution 1.9 times and leaving $1.1 billion to spare. Capital spending of about $1.1 billion on growth was fully funded by excess cash flow, and leverage stood at 2.9x, within the 2.75x–3.25x target range. The article flags three risks: a possible drop in strong overseas demand for U.S.-produced natural gas liquids, rising borrowing costs, and $6.3 billion of growth projects that could strain cash flow if spending rises. The author considers the payout well funded, while noting the potential tax complications of a Schedule K-1 form.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
dividendsnatural gasinterest ratestaxes
Open a keyword to see other news on the same topic.
Related news
- Woodside Posts War Profits as Australians Pay More
Woodside's third-quarter update shows it charged 40% more for its products, mainly liquefied natural gas (LNG), over the past year. Greg Jericho, Chief Economist at The Australia Institute, argues that a 25% tax on gas exports would give Australians a fair return, and Australia Institute research shows it could raise $17 billion a year; the proposal was first put forward by the Australian Council of Trade Unions. Polling by the RedBridge Group shows support for the tax across party lines, including among Greens and One Nation voters. Jericho also says the government's gas reservation scheme will not raise money for the public and will barely affect Woodside.
- Germany plans new energy levy on consumers
According to German media on 14/10, Germany wants households and industry to jointly fund a 3 billion euro emergency gas reserve of 24 TWh, equal to 10% of Germany's storage capacity. The Economy Ministry's original proposal to fund it through consumer and industry levies stalled after coalition lawmakers rejected it, citing already high energy costs, though the ministry is reportedly still pursuing funding entirely from consumers. Starting October 2027, households would pay an extra 3.77 to 7.20 euros a year on gas bills, with total annual costs of 247 to 308 million euros, split 40% for households and commercial users and 60% for industry. The draft still needs government approval and parliamentary passage, and the Greens criticized that the costs would hit people directly.
- Enbridge vs. Enterprise Products: Which High-Yield Dividend Is Actually Safer?
The article compares Enterprise Products Partners (EPD) and Enbridge (ENB), two pipeline stocks with similar forward dividend yields of about 5.9% and 5.8% and roughly three decades of annual dividend increases. It finds EPD has stronger dividend coverage: distributions and buybacks equaled about 54% of cash flow from operations over the trailing 12 months through Q3, versus Enbridge's guided 60% to 70% of discretionary cash flow. EPD is also less leveraged, with debt-to-EBITDA around 2.9 compared with Enbridge's 4.5 to 5 target range. Although MLPs issue K-1s that complicate taxes, the article says EPD is still more tax-efficient, since Enbridge, as a Canadian corporation, is subject to withholding tax on dividends paid to U.S. investors. Enbridge stands out for its regulated natural gas utilities, which give it less cash flow volatility, and the article notes EPD's advantages could change over time.
- Enbridge's Earnings Slipped Last Quarter. Its Dividend Didn't. Here's What to Watch.
Enbridge (ENB) shares have fallen more than 15% over the past three months after the company reported second-quarter adjusted earnings per share down 3% year over year to $0.63. The article argues the drop is an overreaction, pointing to distributable cash flow (DCF) of CA$2.948 billion in the second quarter, up 1.5% year over year, and to Enbridge's position as North America's largest natural gas utility. About 98% of its cash flow is backed by long-term, rate-regulated contracts with inflation adjustments, and the company intends to keep its DCF payout ratio at 60% to 70%; it raised its dividend 3% this year, its 31st consecutive annual increase. Debt-to-EBITDA rose to 6.33x, the highest in three years, as Enbridge invests CA$41 billion in new energy infrastructure projects, which it expects to grow adjusted EBITDA and DCF by 5% annually through the end of the decade. The company forecasts adjusted EBITDA of CA$20.2 billion to CA$20.8 billion this year, up from CA$19.9 billion in 2025.
- Kinder Morgan: 1 Number From Q3 Earnings Every Investor Should See
Kinder Morgan (KMI) reported Q3 results with a 2% dividend increase, EPS up 21% year over year to $0.34, and adjusted EBITDA up 9%; the stock rose 1.6% on October 21, the day it reported. The article highlights a backlog of expansion projects at $14.4 billion, including a company-record $13.2 billion in natural gas projects, up from $9.6 billion in the prior quarter, supported by long-term take-or-pay contracts of up to 20 years. Management said completing the backlog would add about $2.5 billion in adjusted EBITDA, lifting base adjusted EBITDA to $11.5–12 billion, an increase of at least 37% over 2025. The company expects to spend roughly $4 billion annually on capital expenditures, with leverage around 4.5x debt-to-EBITDA, and projects coming online in phases from late 2026 through 2030. The dividend yield is 3.47% at the current share price, and the dividend has risen 138% over the past 10 years.
- If You'd Invested $1,000 in Energy Transfer (ET) Stock 10 Years Ago, Here's What You'd Have Today
Energy Transfer LP (ET) is a midstream energy company that moves, stores and processes oil and gas, with about 140,000 miles of pipeline and related infrastructure across 44 states. A $1,000 investment would have grown to $1,676 over three years, $2,494 over five years, $1,870 over 10 years and $3,843 over 15 years. The company is growing partly through acquisitions, recently agreeing to buy Vaquero Midstream for about $2.6 billion, and its fee-based contracts can provide reliable cash flow for about the next decade. Its dividend yield was recently 7%; it cut its payout in 2020 to restructure but has raised it for nearly 20 quarters in a row. As a master limited partnership, Energy Transfer requires owners to file a K-1 tax form.
Related markets
Latest news
- Is Adobe the Ultimate Buy-on-the-Dip Stock?
The article argues Adobe faces the risk of being replaced by AI-generated images, though the company is adding AI tools to its software. Its subscription revenue has kept growing at a slow but steady pace, with little change from the 2022 growth rate, while the stock is down about 60% from its late 2021 peak. Adobe now trades at 11 times forward earnings, a level that reflects market skepticism. The author doubts Adobe can achieve 20% to 30% growth or regain its valuation, and even a rise to 20 times forward earnings would amount to a single doubling followed by market-average growth. Although the author thinks the outlook is not as bad as the market believes, investors do not need to hold Adobe stock when many solid AI stocks are available.
- Is Apple a Top Tech Stock to Buy Now?
The article notes Apple is up about 27% in 2026 and has lifted revenue growth above 10% year over year, but argues that growth may fade once the current smartphone upgrade cycle ends. It notes that Apple's stock has twice exceeded 40 times earnings over the past decade, and each time the valuation fell by 25% to around 30 times earnings or lower, a pattern the author expects could repeat in 2027. With analysts projecting about 10% revenue growth in 2027, the author sees Apple growing at roughly the S&P 500's average pace, while the index trades at 23.2 times earnings. The author therefore concludes there are better stocks than Apple to consider now and that Apple's valuation is unlikely to rise much further from current levels.
- A Stock Market Correction Could Be Coming. Here's Why I'm Still Investing.
The S&P 500's Shiller cyclically adjusted P/E is now about 41, its highest level since August 2000, when it stood at 41.89 and the market had already entered the early stage of a bear market that lasted until November 2022. The author says it is impossible to know whether a correction is imminent and that the market could keep rising. The author suggests keeping portfolios diversified, rebalancing if they are top-heavy in tech, scaling back positions in stocks valued well above their typical ranges, and adding value, dividend, and high-quality stocks. The author also views discounted tech, AI, or growth stocks as worth examining, provided investors research why they are cheap and whether their fundamentals remain strong.
- S&P Says Meta Can’t Make Money From AI as Well as Its Rivals
S&P Global Ratings affirmed Meta's AA- rating but revised its outlook to negative, citing heavy AI capital spending, negative free cash flow, and doubts that Meta can monetize its AI investments as well as peers. S&P now expects capex above $225 billion in 2027, up from $163 billion previously, pushing adjusted leverage to 1.1x, past its 1.0x downgrade threshold, which could lead to a downgrade if the forecast holds. Meta disputed S&P's assessment, citing significant product and business opportunities ahead. To help fund the buildout, Meta sold $25.0 billion of Class A stock and $12.5 billion of mandatory convertible preferred stock, about $37.5 billion in total, and plans a $60 billion Class C at-the-market program starting in January 2027. The stock closed at $614.99, down 1.53%, after October's 15.2% decline made it Meta's worst month in four years.
- Should You Trade Crypto OTC to Avoid Bank Account Freezes?
A reader asks whether switching from P2P to OTC crypto trading would avoid the risk of bank account freezes. The expert says OTC addresses some P2P drawbacks, especially for large trades, but the risk does not automatically fall; it shifts to the counterparty, source of funds, assets and disputes. Investors should verify their counterparty's legal status, identity and ability to explain the source of funds, and keep full records such as wallet addresses, transaction hashes and bank statements. Under Resolution 05/2025, only Ministry of Finance-licensed organizations may provide crypto-asset services, and six months after the first licensed provider is granted a license, domestic investors trading outside licensed entities may face penalties. Decree 284/2026, effective in September, adds penalties for violations, so investors should be cautious with self-described 'OTC desks' or 'brokers'.
- Looking For Growth, Income, and Stability? This Stock Could Offer All 3
The article argues that Amgen combines growth, income and stability. In the second quarter, revenue rose 10% year over year to $10.1 billion, and 22 products posted at least double-digit sales growth despite the upcoming loss of patent exclusivity for denosumab. Newer therapies such as Tezspire, Tepezza and Imdelltra are driving growth, and MariTide, an investigational GLP-1 medicine in Phase 3 studies, could launch within a few years. The stock rose about 16% in 2022 when broader equities fell, and the dividend has grown 152% over the past decade. With a trailing-12-month cash payout ratio of 51.9% and a forward yield of 2.3% versus the S&P 500's average of 1.1%, the author considers Amgen suitable for income-focused investors.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.