ENB:CC - Enterprise Products Partners: A Big Dividend Backed By Big Free Cash Flow

2024-04-01 11:01:25 ET

Summary

• MLP stocks have performed well, with the InfraCap MLP ETF returning over 19% this year.
• Enterprise Products Partners (EPD), one of the ETF's top holdings, offers a low valuation, high yield, and technical strength.
• EPD has robust fundamentals, including solid earnings and revenue growth, and is expected to continue generating high free cash flow.
• I highlight key price levels on the chart to monitor.

MLP stocks have taken off in recent months. The InfraCap MLP ETF ( AMZA ) has returned more than 19% so far this year as momentum persists following a robust 2023. While relative strength to the S&P 500 has been merely neutral since Q4 of 2022, this income-heavy niche of the US investment market has weathered the rise in interest rates very well. Now, with gains being seen in oil & gas-related equities, there could be further tailwinds for energy service companies in the MLP space....

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