Are Enterprise Products Partners (EPD) a high-yield passive income machine?

Enterprise Products Partners LP (NYSE:EPD) is included in 10 best passive income stocks to buy now Due to its dividend growth and high yield.

Aerial view of refinery towers surrounded by vast landscapes of pipelines at oil and gas midstream facilities.

On July 9, the company declared a 2% increase in quarterly dividends to $0.545 per share. This increase led the company to expand its dividend growth streak in 2029.

In the first quarter of 2025, Enterprise Products Partners LP (NYSE:EPD) reported $1 billion in distributionable cash flows (DCF) in the first quarter of 2025, up 5% from $19 billion posted in the same period last year. DCF has covered more than 1.7 times its distribution in the last quarter, allowing the company to hold cash flow of $842 million. Adjusted cash flows from operations (CFFOs) appeared in the first quarter of both 2025 and 2024 at $2.1 billion. For the 12 months ended March 31, 2025, the adjusted CFFO totaled $8.6 billion. During that same period, the company’s payment rate, including distributions to general non-deployers and distributions to buybacks, was 56% of adjusted CFFOs.

In addition to dividend growth, Enterprise Production Partners LP (NYSE:EPD) also offers a solid dividend yield of 6.71% as of July 10th.

While acknowledging the potential of EPD as an investment, we believe certain AI stocks offer a greater reverse chance, pose a risk of decline. If you’re looking for a highly undervalued AI stock that can make a significant profit from the tariff and supervision trends of the Trump era, check out our free report. Best Short-Term AI Stocks.

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Disclosure: None.