2024-06-15 07:00:00 ET
Summary
- Dividend aristocrats are beloved for their income growth, dependability, and quality.
- Enterprise Products takes all the best aspects of aristocrats and cranks them up to 11.
- EPD is the quality king of midstream and the only A-rated aristocrat with a 7%-plus yield.
- EPD's median peak decline in bear markets is 12% compared to a 60-40's 18% decline. Its average bear market returns are +5%.
- EPD is 16% undervalued with 27% potential upside to fair value potential within the next year, 70% within three years, 140% within five years, and 13% to 14% long-term total return potential. That matches the historical 14% returns over the last 26 years.
Dividend aristocrats are beloved for their dependability and quality.
Dividend Kings Zen Research Terminal
Dividend Kings Zen Research Terminal
The entire dividend champion group offers a yield almost two times that of the S&P, with a far superior valuation profile.
S&P Valuation Profile
Week | 24 | |
% Of Year Done | 2024 Weighting | 2025 Weighting |
46.15% | 53.85% | 46.15% |
Forward S&P EV/EBITDA (Cash-Adjusted Earnings) | 10-Year Average | Market Overvaluation |
14.24 | 13.50 | 5.22% |
S&P Fair Value | Decline To Fair Value | Cash-Adjusted Fair Value PE: |
5,162.13 | 4.96% | 19.5 |
(Source: Dividend Kings S&P Valuation Tool)
Potential Overvaluation | S&P 10-Year Average Cash-Adjusted PEG | S&P Current Cash-Adjusted PEG |
-31.41% | 1.77 | 1.21 |
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For further details see:
Enterprise Products Partners: 3 Important Facts About This 7.2% Yielding Dividend Aristocrat