Reason to Acquire Enterprise Products Partners' Shares Before July 29th
Investors seeking a steady income stream and potential growth opportunities in the energy sector might want to consider Enterprise Products Partners (EPD) before July 29. The main reason for this timing is not necessarily the expectation of beating earnings estimates, but primarily the distribution.
EPD, a midstream energy company with a strong track record of cash flow and dividend growth, recently declared a quarterly dividend of $0.545 per share, a 1.9% increase over the previous dividend. The ex-dividend date is July 31, 2022, meaning investors must hold the stock before this date to be eligible to receive the dividend payable on August 14, 2022. Buying before July 29 ensures you own shares before the ex-dividend date, allowing you to collect the dividend.
In addition to the upcoming dividend payment, the next quarterly results for EPD are expected to be announced by July 29, or within a day or two. While the exact earnings announcement date was not explicitly stated, these announcements often happen shortly before the ex-dividend date to reflect the recent financial performance that supports the dividend.
For every $10,000 of EPD units bought, a distribution of approximately $172 is expected for the next quarter. However, the exact distribution amount for EPD before July 29 has not been disclosed.
EPD's long-term prospects are positive, according to Co-CEO Jim Teague, due to the global demand for U.S. oil, natural gas, and natural gas liquids. The company's yield currently stands at 6.89%.
The expected Q2 revenue for EPD ranges from $13.3 billion to $15.21 billion, with an average estimate of $14.47 billion. The expected earnings per unit range from $0.61 to $0.70, with an average estimate of $0.67 per unit.
EPD's history of beating analysts' earnings expectations in the previous two quarters adds to the attractiveness of the company. Furthermore, the uncertainty created by President Trump's tariffs could decrease, potentially causing EPD's unit price to rise.
Another significant factor is EPD's consistency in paying distributions quarter after quarter. In fact, the company has increased its distribution for 26 consecutive years. This steadiness makes EPD an attractive choice for income-focused investors.
In summary, buying EPD before July 29 is strategic to qualify for the dividend payment scheduled in mid-August and to position for the company’s next quarterly results, which provide updated insights into its financial health and outlook. The combination of a safely growing dividend yield near 7% and upcoming earnings clarity makes this timing particularly relevant.
- Investors interested in a steady income stream from the energy sector might consider purchasing Enterprise Products Partners (EPD) before July 29, as doing so would qualify them to receive the upcoming dividend payable on August 14, 2022.
- The upcoming dividend is not the only attractive factor for EPD; the company's next quarterly results are expected to be announced by July 29, providing financial insights and outlook for potential growth.
- For every $10,000 of EPD units purchased, an approximate distribution of $172 is expected for the next quarter; however, the exact distribution amount before July 29 has not been disclosed.
- EPD's consistency in paying distributions quarter after quarter, coupled with its impressive 26-year track record of increasing distributions, makes it an attractive choice for income-focused investors in the finance industry, particularly those looking to invest in the energy sector.
