Dividend Stocks Double Average Annual Returns of Non-Payers Over 51 Years
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 06 2026
0mins
Source: NASDAQ.COM
- Dividend Stock Performance: According to Hartford Funds, over the past 51 years, dividend stocks have achieved an average annual return of 9.2%, compared to just 4.31% for non-payers, highlighting the long-term advantages of dividend investing.
- Safe Dividend Choices: Among high-yield stocks, Sirius XM boasts an annual yield of nearly 5.3%, benefiting from its unique position as the only satellite radio provider in the U.S., which grants it strong pricing power and stable subscription revenue for shareholders.
- Stability in Energy Stocks: Enterprise Products Partners has increased its dividend for 27 consecutive years, with a current yield nearing 7%, and its long-term fixed-fee contracts ensure highly predictable cash flow, mitigating risks from market volatility.
- Growth Potential in Healthcare Stocks: Pfizer's dividend yield is close to 7%, and despite a decline in share price due to falling COVID-19 vaccine sales, its acquisition of Seagen significantly expands its oncology pipeline, expected to enhance profitability in the coming years.
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Analyst Views on EPD
Wall Street analysts forecast EPD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EPD is 35.17 USD with a low forecast of 33.00 USD and a high forecast of 38.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
6 Buy
5 Hold
1 Sell
Moderate Buy
Current: 35.080
Low
33.00
Averages
35.17
High
38.00
Current: 35.080
Low
33.00
Averages
35.17
High
38.00
About EPD
Enterprise Products Partners L.P. is a provider of midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, refined products and petrochemicals. Its NGL Pipelines & Services segment includes natural gas processing and related NGL marketing activities, NGL pipelines, NGL fractionation facilities, NGL and related product storage facilities and NGL marine terminals. Its Crude Oil Pipelines & Services segment includes crude oil pipelines, crude oil storage and marine terminals and related crude oil marketing activities. Its Natural Gas Pipelines & Services segment includes natural gas pipeline systems that provide for the gathering, treating and transportation of natural gas. Its Petrochemical & Refined Products Services segment includes propylene production facilities; butane isomerization complex and related deisobutanizer (DIB) operations; octane enhancement, iBDH and HPIB production facilities; refined products pipelines, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Enterprise Products Partners: A High-Yield Income Powerhouse
- Stable Dividend Yield: Enterprise Products Partners (EPD) boasts a current yield of 6.3%, significantly higher than the S&P 500's 1.1%, making it an ideal choice for high-yield investors, with a track record of increasing distributions for 27 consecutive years, reflecting its robust cash flow and profitability.
- Passive Income Calculation: To generate $1,000 in annual passive income, investors would need to own 454.5 units, translating to an investment of approximately $15,900 at the current unit price of $35, which is substantially lower than the $87,700 required for an S&P 500 investment, highlighting EPD's attractiveness.
- Strong Cash Flow: In 2025, EPD generated $7.9 billion in distributable cash flow, covering its high-yield distribution by a factor of 1.7, allowing the company to retain $3.2 billion for reinvestment, thereby enhancing its financial stability.
- Future Investment Plans: EPD plans to invest between $2.5 billion and $2.9 billion in growth capital projects by 2027, which, alongside declining capital expenditures and new projects entering commercial service, will increase its free cash flow, supporting ongoing distribution growth and stock buybacks while further strengthening its elite balance sheet.
See More
Enterprise Products Partners Returns to Growth in Q4
- Financial Recovery: Enterprise Products Partners reported a 4% increase in total gross operating profit to $2.74 billion in Q4, with adjusted EBITDA also rising by 4% to $2.71 billion, indicating a recovery in financial health after facing challenges in 2025, which boosts investor confidence.
- Strong Cash Flow: Distributable cash flow (DCF) rose by 3% to $2.22 billion, and despite a lackluster 2025, the company maintained a solid distribution coverage ratio, demonstrating its robust business model and commitment to shareholder returns.
- Capital Expenditure Adjustment: The company has reduced its capital expenditure budget for 2026 to a range of $2.5 billion to $2.9 billion from $4.4 billion in 2025, providing more flexibility for future discretionary free cash flow, with an estimated $1 billion expected in 2026.
- Future Growth Outlook: Enterprise forecasts adjusted EBITDA and cash flow growth at the lower end of 3% to 5% for 2026, but anticipates double-digit growth in 2027 as new projects come online, indicating significant performance improvement potential in the coming years.
See More
Enterprise Products Partners Projects Growth Acceleration
- Q4 Performance Recovery: Despite challenges from the roll-off of favorable contracts in its LPG business in 2025, Enterprise Products Partners reported a 4% year-over-year increase in total gross operating profit to $2.74 billion in Q4, demonstrating its robust business model and strong market visibility.
- Strong Cash Flow: The company's distributable cash flow (DCF) rose by 3% to $2.22 billion in Q4, with a coverage ratio of 1.8x indicating that distributions remain well-supported, thereby enhancing investor confidence.
- Capital Expenditure Adjustment: Enterprise has reduced its capital expenditure budget for 2026 to a range of $2.5 billion to $2.9 billion from $4.4 billion in 2025, a strategic move that will provide more room for future free cash flow growth, with an expected generation of around $1 billion in discretionary free cash flow in 2026.
- Future Growth Outlook: The company anticipates that its adjusted EBITDA and cash flow will grow at the lower end of the 3% to 5% range in 2026, but expects double-digit growth in 2027 as new projects come online, showcasing strong growth potential.
See More
Analysis of High-Yield Stock Investment Opportunities
- Hormel Foods Dividend Performance: Hormel Foods boasts a 4.7% dividend yield, nearing its historical high, despite challenges from post-pandemic inflation and pricing difficulties, with the board reinstating the former CEO to drive recovery, likely attracting more dividend investors.
- Sustained Dividend Growth: Hormel has increased its dividend for 60 consecutive years, with a modest 1% hike indicating strong recovery potential on a solid foundation, capturing the attention of long-term dividend investors.
- Enterprise Products Partners' Stable Yield: Enterprise Products Partners offers a reliable 6.2% yield in the energy sector, with distributable cash flow covering distributions at a comfortable 1.7x, suggesting potential for further growth, appealing to investors seeking steady income.
- High-Yield Investment Options: Despite the S&P 500's overall yield of only 1.1%, high-yield stocks like Hormel and Enterprise Products Partners present excellent opportunities for investors looking to secure stable income in a volatile market.
See More
Energy Transfer's Attractive Yield and Associated Risks
- Attractive Yield: Energy Transfer offers a 7.3% distribution yield, appealing to dividend investors aiming to maximize portfolio income, although the underlying business structure is somewhat complex.
- Business Complexity: As one of North America's largest midstream operators, Energy Transfer owns energy infrastructure and charges fees for usage, but also serves as the general partner for two publicly traded master limited partnerships, adding management complexity.
- Dividend History Comparison: Unlike Enterprise Products Partners, Energy Transfer cut its distribution in 2020, and while it now targets annual growth of 3% to 5%, past cuts may have disappointed income-dependent investors.
- Investment Considerations: Despite the attractive high yield, the associated risks and complexities of Energy Transfer may lead conservative dividend investors to prefer Enterprise Products Partners, which offers more stable dividend growth.
See More
Enterprise Products Partners' Distribution Continues to Grow
- Stable Distribution Yield: Enterprise Products Partners (EPD) offers a forward distribution yield of 6.3% and has increased its distribution for 27 consecutive years, demonstrating its stability and appeal in the volatile energy sector.
- Strong Cash Flow Performance: In 2025, Enterprise Products Partners achieved record cash flow from operations and EBITDA, with fourth-quarter EBITDA reaching an all-time high, indicating robust financial health and profitability.
- Buyback Plans and Distribution Growth: Despite a negative $1.6 billion in free cash flow in 2025, lower capital expenditures are expected in 2026, with management projecting discretionary cash flow around $1 billion, which will be allocated to buybacks and debt repayment, enhancing per-unit distributions.
- Future Growth Potential: Enterprise Products Partners anticipates double-digit cash flow growth in 2027, driven by new projects coming online, particularly the second train at the Neches River facility and a new processing plant in the Midland Basin, presenting an optimistic growth outlook.
See More
Enterprise Products Partners: A High-Yield Income Powerhouse
- Stable Dividend Yield: Enterprise Products Partners (EPD) boasts a current yield of 6.3%, significantly higher than the S&P 500's 1.1%, making it an ideal choice for high-yield investors, with a track record of increasing distributions for 27 consecutive years, reflecting its robust cash flow and profitability.
- Passive Income Calculation: To generate $1,000 in annual passive income, investors would need to own 454.5 units, translating to an investment of approximately $15,900 at the current unit price of $35, which is substantially lower than the $87,700 required for an S&P 500 investment, highlighting EPD's attractiveness.
- Strong Cash Flow: In 2025, EPD generated $7.9 billion in distributable cash flow, covering its high-yield distribution by a factor of 1.7, allowing the company to retain $3.2 billion for reinvestment, thereby enhancing its financial stability.
- Future Investment Plans: EPD plans to invest between $2.5 billion and $2.9 billion in growth capital projects by 2027, which, alongside declining capital expenditures and new projects entering commercial service, will increase its free cash flow, supporting ongoing distribution growth and stock buybacks while further strengthening its elite balance sheet.
See More
Enterprise Products Partners Returns to Growth in Q4
- Financial Recovery: Enterprise Products Partners reported a 4% increase in total gross operating profit to $2.74 billion in Q4, with adjusted EBITDA also rising by 4% to $2.71 billion, indicating a recovery in financial health after facing challenges in 2025, which boosts investor confidence.
- Strong Cash Flow: Distributable cash flow (DCF) rose by 3% to $2.22 billion, and despite a lackluster 2025, the company maintained a solid distribution coverage ratio, demonstrating its robust business model and commitment to shareholder returns.
- Capital Expenditure Adjustment: The company has reduced its capital expenditure budget for 2026 to a range of $2.5 billion to $2.9 billion from $4.4 billion in 2025, providing more flexibility for future discretionary free cash flow, with an estimated $1 billion expected in 2026.
- Future Growth Outlook: Enterprise forecasts adjusted EBITDA and cash flow growth at the lower end of 3% to 5% for 2026, but anticipates double-digit growth in 2027 as new projects come online, indicating significant performance improvement potential in the coming years.
See More
Enterprise Products Partners Projects Growth Acceleration
- Q4 Performance Recovery: Despite challenges from the roll-off of favorable contracts in its LPG business in 2025, Enterprise Products Partners reported a 4% year-over-year increase in total gross operating profit to $2.74 billion in Q4, demonstrating its robust business model and strong market visibility.
- Strong Cash Flow: The company's distributable cash flow (DCF) rose by 3% to $2.22 billion in Q4, with a coverage ratio of 1.8x indicating that distributions remain well-supported, thereby enhancing investor confidence.
- Capital Expenditure Adjustment: Enterprise has reduced its capital expenditure budget for 2026 to a range of $2.5 billion to $2.9 billion from $4.4 billion in 2025, a strategic move that will provide more room for future free cash flow growth, with an expected generation of around $1 billion in discretionary free cash flow in 2026.
- Future Growth Outlook: The company anticipates that its adjusted EBITDA and cash flow will grow at the lower end of the 3% to 5% range in 2026, but expects double-digit growth in 2027 as new projects come online, showcasing strong growth potential.
See More
Analysis of High-Yield Stock Investment Opportunities
- Hormel Foods Dividend Performance: Hormel Foods boasts a 4.7% dividend yield, nearing its historical high, despite challenges from post-pandemic inflation and pricing difficulties, with the board reinstating the former CEO to drive recovery, likely attracting more dividend investors.
- Sustained Dividend Growth: Hormel has increased its dividend for 60 consecutive years, with a modest 1% hike indicating strong recovery potential on a solid foundation, capturing the attention of long-term dividend investors.
- Enterprise Products Partners' Stable Yield: Enterprise Products Partners offers a reliable 6.2% yield in the energy sector, with distributable cash flow covering distributions at a comfortable 1.7x, suggesting potential for further growth, appealing to investors seeking steady income.
- High-Yield Investment Options: Despite the S&P 500's overall yield of only 1.1%, high-yield stocks like Hormel and Enterprise Products Partners present excellent opportunities for investors looking to secure stable income in a volatile market.
See More
Energy Transfer's Attractive Yield and Associated Risks
- Attractive Yield: Energy Transfer offers a 7.3% distribution yield, appealing to dividend investors aiming to maximize portfolio income, although the underlying business structure is somewhat complex.
- Business Complexity: As one of North America's largest midstream operators, Energy Transfer owns energy infrastructure and charges fees for usage, but also serves as the general partner for two publicly traded master limited partnerships, adding management complexity.
- Dividend History Comparison: Unlike Enterprise Products Partners, Energy Transfer cut its distribution in 2020, and while it now targets annual growth of 3% to 5%, past cuts may have disappointed income-dependent investors.
- Investment Considerations: Despite the attractive high yield, the associated risks and complexities of Energy Transfer may lead conservative dividend investors to prefer Enterprise Products Partners, which offers more stable dividend growth.
See More
Enterprise Products Partners' Distribution Continues to Grow
- Stable Distribution Yield: Enterprise Products Partners (EPD) offers a forward distribution yield of 6.3% and has increased its distribution for 27 consecutive years, demonstrating its stability and appeal in the volatile energy sector.
- Strong Cash Flow Performance: In 2025, Enterprise Products Partners achieved record cash flow from operations and EBITDA, with fourth-quarter EBITDA reaching an all-time high, indicating robust financial health and profitability.
- Buyback Plans and Distribution Growth: Despite a negative $1.6 billion in free cash flow in 2025, lower capital expenditures are expected in 2026, with management projecting discretionary cash flow around $1 billion, which will be allocated to buybacks and debt repayment, enhancing per-unit distributions.
- Future Growth Potential: Enterprise Products Partners anticipates double-digit cash flow growth in 2027, driven by new projects coming online, particularly the second train at the Neches River facility and a new processing plant in the Midland Basin, presenting an optimistic growth outlook.
See More
