The 2 Best Dividend Stocks to Own for the Next.jpeg
Arrows profits that can provide income and growth reliably over the next decade are not easy to find. However, a few of their stability and strong cash flows and adhere to the returns of shareholders emerge. For investors who seek to obtain reliable profits in a world of uncertainty, Enterprise (EPD) and Enbridge products are the best shares you have over the next ten years.
Profit return: 6.8 %
Enterprise Products continues to prove the reason for their presence among the best profit shares for long -term investors. Despite the fight against total economic uncertainty, commercial tensions, and unpredictable global energy markets, the company has created another strong performance in the second quarter, which shows its strategy flexibility and strategy that focuses on shareholders. EPD has a 6.8 % forward profit division return, compared to an average of about 4.2 % for the energy sector.
Enterprise is a leading company in the middle of the road in North America. He owns and manages thousands of miles of pipelines that transport natural gas, natural gas liquids (NGLS) (NGU25), raw oil (Clu25), refined products, and petrochemicals throughout the United States
EPD shares decreased by 0.5 % on an annual basis (YTD), compared to an increase in the broader market.
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Enterprise reported the pre -interest profits, income taxes, depreciation, and extinguishing (EBITDA) of $ 2.4 billion per quarter, with a 1.9 billion dollar cash flow (DCF), an annual increase (YO). DCF covered the distribution 1.6 times, allowing the company to keep an additional $ 748 million in a quarter and $ 3.4 billion during the past year. This financial flexibility has strengthened its public budget while ensuring long -term feasibility for its growing distributions.
More importantly, in the second quarter, Enterprise announced the payment of $ 0.545 per unit, an increase of 3.8 % on an annual basis. This is another step in its 28 -year history of profit growth, making it an aristocratic. Over the past twelve months, EPD has returned to $ 4.9 billion for workers through distributions and recycling of the unit, and translated into a payment rate of only 57 % of the amended cash flow from operations. This leaves a big room for further growth and re -investment. It is worth noting that Enterprise has constantly increased the distribution despite the high payment rate.
During the second quarter profit call, the administration stated that the Internet is expected to take place about $ 6 billion of organic growth initiatives for the next 18 months. Three new gas processing stations in the pelvis will increase from the total treatment capacity to approximately 5 billion cubic feet (billion cubic feet) per day, which leads to 650,000 barrels of fluids produced per day. This means that the profit force has been set to increase more.
In addition to the payments, Enterprise activity actively brought back through re -purchases. Over the past year, it restarted 10 million units for $ 309 million, which increased the total purchase spending under its program of $ 2 billion to $ 1.3 billion.
Overall, the Wall Street EPD rates “Moderate Buy” stock. Of the 17 analysts covering EPD, Nine recommends a “strong purchase”, one of them “moderate purchase”, and seven recommends “Hold”. The average price of the analyst of $ 36.07 is a potential increase of 15 % over the current levels. Its target price of $ 40 indicates that the stock can climb by another 27.5 % over the next 12 months.
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Profit return: 5.6 %
When it comes to fixed distributions and long -term growth, Enbridge continues to stand out. With a busy record of 30 consecutive annual profits, a stable business model, and a guaranteed capital program worth $ 32 billion that will continue well in the contract, the company offers a good argument for being the best profits it owns over the next decade.
With a value of $ 148.3 billion, Enbridge manages the critical energy infrastructure throughout North America, and its various wallets extend, storage, facilities, and renewable energy sources. ENB share acquired 17 % ytd, compared to the total market.
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Enbridge’s profits in the second quarter showed the flexibility of her business model. The modified Ebitda increased 7 % on an annual basis. Increased financing costs and taxes weighing on the DCF, which remained on a flat annual, while profits for the stock increased by 12 % despite commercial concerns and geopolitical developments.
On the American Gulf coast, Enbridge is investing in improvement projects that support high energy demand from data centers. Gas distribution work continues to show fixed growth, which is very important to pay ongoing profits payments. Moreover, renewable energy projects in Texas show their ability to invest capital in renewable energy sources using the same long -term decade strategy that has identified their tubes and tools.
Enbridge’s attractiveness stems from its profits. With the payment rate of 60 % to 70 % of the DCF, profit distributions are fully supported through high -quality high -risk cash flows. Over the next five years, the administration plans to return 40 billion dollars to $ 45 billion for shareholders while supporting a safe accumulation of growth initiatives. It also has a 5.6 % front dividend yield, which is higher than the average energy sector.
This year celebrated the thirtieth annual Enbridge profits in a row, which increased its position as aristocratic profits. With predictable cash flows, strong public budget, and marked growth until the end of the contract, Enbridge is one of the very few companies that can provide stability and regular revenue growth regardless of market courses.
Overall, the Wall Street Inb rates “moderate purchase”. Among 20 analysts in coverage, Nine recommends nine “strong purchase”, and two “moderate purchases”, then eight says it is a “suspension”, and one of them reaches a “strong sale”. ENB arrow is traded near the target price of $ 49.60. The estimate of its comprehensive high price of $ 55.88 means up to 13.6 % of the current levels.
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On the date of publication, Sushree Mohanty did not have positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are only for media purposes. This article was originally published on Barchart.com
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