Why You Should Be Excited About a 4 Percent Yield

Why You Should Be Excited About a 4 Percent Yield (YahooFinance)

Enterprise Products Partners (EPD), which provides energy services to producers of natural gas products, as well as to producers of crude oil and refined liquids,raised the quarterly cash dividend it pays to partners to $0.71 per common unit, or $2.84 per unit on an annualized basis. That hike rounds out to a 4-percent yield. If that yield doesn’t sound too exciting… it’s just the beginning. With Phillips 66 new deal with China Sinopec, the world’s largest liquefied petroleum gas (LPG) consumer will triple its demand during the next six years. In fact, plans are in the works to build 10 new 600,000 tonne-per-year gas-fired petrochemical plants. And EPD is one of the two firms linked to these plans. Once these plants come online, the 235.6% rise EPD share price experienced over the last five years could be dwarfed. If and when that happens, you can bet the 4-percent dividend will climb accordingly. Now could be the time to beam aboard Enterprise (EPD).

Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.

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