Daily Stock Analysis: Enterprise Products (EPD)

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Enterprise Products Partners LP goes by the ticker symbol EPD and is a member of the energy business sector as a large-cap oil and gas midstream facilities operator. This is my second report on Enterprise Products Partners LP for this Vista portfolio. I last reported on Enterprise Products on September 29, 2020.

Enterprise Products Partners is a master limited partnership that transports and processes natural gas, natural gas liquids, crude oil, refined products, and petrochemicals. 

It is one of the largest midstream companies, with operations servicing most producing regions in the Lower 48 states. 

Enterprise is particularly dominant in the NGL market and is one of the few MLPs that provide midstream services across the full hydrocarbon value chain.

The company was founded in 1968 and is headquartered in Houston, Texas.

Three key data points gauge dividend equities or funds like Enterprise Products Partners LP:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

EPD Price

Enterprise's price per share was $23.58 as of yesterday's market close. One year ago its price was $17.63. So EPD price has gained almost 33.75% in the past year. 

Should EPD's stock trade in the range of $15 to $30.00 this next year, its recent $17.63 price might rise by $4.42 to reach $28.00 by June 29, 2022. My estimate is slightly lower than the medan of annual price gains estimated by 24 analysts tracking EPD for brokerage houses.

EPD Dividends

Enterprise Products Partners LP's most recent quarterly dividend payout of $0.45 was paid May 12, 2021, and equates to  $1.80 annually to yield 7.63% annually based on yesterday's $23.58 closing price. EPD has paid increasing annual dividends for 24 years.

EPD Returns

Adding the $1.80 annual EPD forward-looking dividend to my $4.42 price upside estimate shows a $6.22 potential gross gain, per share, to be reduced by any costs to trade Enterprise Products Partners LP shares.  

At yesterday's $23.58 price per share, a little under $1000 would buy 42 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us  $0.24 per share.

Subtract that maybe $0.24 brokerage cost from my estimated $6.22 gross gain per share results in a net gain of $5.98 X42 shares = $251.16 for a 25.12% net gain on a $990.36 investment.

So it is that Enterprise Products Partners LP  shows a possible 25.12% net gain including a 7.63% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in EPD would generate $78.30 in cash dividends. And a single share bought at yesterday's closing price was $23.58! Thus, MMP's share price is less than one-third of the dividend income from $1K invested. Thus, according to dogcatcher preference, this is a very opportune time to invest in Enterprise Products Partners LP shares for long-term dividend income.

All of the estimates above are speculation based on the past history of Enterprise Products Partners LP. Only time and money invested in this stock will determine its true worth.

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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