Daily Stock Analysis: Enterprise Products Partners (EPD)

Enterprise Products Partners, known by the ticker symbol EPD, is a large cap oil & gas midstream company in Texas and operates in the Energy business sector. This is my first report on Enterprise Products Partners for my Viital stock portfolio. I have not reviewed EPD since I selected it June 29th as my 43rd pick for my sixth portfolio named Vista.

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


Image Source: Unsplash

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 Natural Gas Liquids 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 any dividend equity or fund such as Enterprise Products Partners  (EPD):

(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 Products Partners's price per share was $21.62 as of yesterday's market close. One year ago its price was $19.74 Thus, Enterprise Products Partners's share price rose $1.88 or 9.5% in the past year.

If EPD's stock trades in the range of $18.00 to $30.00 this next year, its recent $21.62 share price might rise by $6.38 to reach $28.00 by December 29, 2022. My estimate is $0.28 lower than the median of 1yr price estimates from twenty-four analysts who track EPD for brokerages.

EPD Dividends

Enterprise Products Partners's most recent quarterly dividend of  $0.45 was paid out November 11th, to shareholders of record October 28th. That quarterly dividend and the three previously paid equal $1.80 annually and yield 8.33% per yesterday's $21.62 closing price. 

Enterprise Products Partners (EPD) has paid variable semi-annual dividends since November 12, 1998. That was 23 years in November.

EPD Returns

Adding the $1.80 annual estimated EPD forward-looking dividend to my $6.38 price upside estimate shows an $8.18 potential gross gain, per share, to be reduced by any costs to trade EPD shares.  

At yesterday's $21.62 price per share, a little under $1000 would buy 46 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.22 per share.

Subtract that maybe $0.22 brokerage cost from my estimated $8.18 gross gain per share results in a net gain of $7.96 X 46 shares = $366.16 for a 36.62% net gain on a $994.52 investment.

So it is that Enterprise Products Partners (EPD) shows a possible 36.62% net gain including an 8.33% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in Enterprise Products Partners (EPD) could generate $83.30 in cash dividends alone. Note that a single share of EPD stock bought at yesterday's closing price was $21.62. Therefore, EPD share price is nearly four times less than the dividend income from $1000.00 invested. Thus, according to my dogcatcher ideal, now is a prime time to pick up Enterprise Products Partners (EPD) shares. The estimated next-year dividend from $1K invested is 3.85 times EPD's single share price. Consider yourself alerted. It's a sign!    

All of the estimates above are speculation based on the past history of Enterprise Products Partners (EPD). Only time and money invested in this stock will determine its market value.

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 ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.