From The Motley Fool · James Halley · · 1m
Enterprise Products Partners Distribution Growth Slowing
Enterprise Products Partners' distribution growth slowed from 5% to 2.7% but investors see it as a feature, not a red flag.
In brief
Enterprise Products Partners' distribution growth slowed from 5% to 2.7% but investors see it as a feature, not a red flag. Enterprise Products Partners' distribution growth slowed from 5% to 2.7% but investors see it as a feature, not a red flag. Originally reported by The Motley Fool.
Distribution Growth Slowing
Enterprise Products Partners' distribution growth slowed from 5% to 2.7% this year.
Dividend Yield and Track Record
The company has raised its dividend for 28 straight years with a 5.78% yield.
Distribution Coverage Ratio Improving
Operational distributable cash flow coverage improved to 1.9x from 1.5x.
Share Buyback Program
The company is in the midst of a $5 billion stock repurchase program.
Strong Core Business
Enterprise reported record third-quarter volumes in Permian Basin natural gas processing plants.
Valuation and Growth Strategy
The stock remains a bargain with less than 17x trailing earnings and 54% payout ratio.
The key point
Enterprise Products Partners' distribution growth slowed from 5% to 2.7% but investors see it as a feature, not a red flag.
