2 No-Brainer Dividend Stocks to Buy Right Now

Dividend stocks are immoderate of the smartest investments you tin make. They've outperformed non-payers by much than two-to-one implicit the past 50 years, according to information from Ned Davis Research and Hartford Funds. The highest returns person travel from companies that consistently summation their dividend payments.

Enterprise Products Partners (NYSE: EPD) and Verizon (NYSE: VZ) person fantabulous way records of expanding their dividends. With much maturation likely, they're no-brainer dividend stocks to bargain close now.

Enterprise Products Partners has accrued its payout for 27 consecutive years, each twelvemonth since it became a publically traded company. The master constricted partnership (MLP), which sends investors a Schedule K-1 Federal Tax Form each year, has raised its organisation outgo by astir 4% implicit the past year. It presently yields 6.9%, good supra the S&P 500's level (1.2%).

The vigor midstream giant's high-yielding payout is connected rock-solid ground. It generates tons of unchangeable currency flow. Enterprise produced $1.8 cardinal of distributable currency travel during the 3rd quarter, covering its payout by a comfy 1.5 times. That allowed it to clasp $635 cardinal successful cash. The MLP returned an further $80 cardinal to investors by repurchasing immoderate of its communal units during the quarter. It reinvested the remaining currency into enlargement projects. Enterprise Products Partners besides has 1 of the strongest equilibrium sheets successful the vigor midstream sector, with a debased 3.3 times leverage ratio and industry-leading A-/A3 bond ratings.

Enterprise Products Partners is investing heavy to grow its midstream operations. It's presently astatine the process extremity of a multi-year enlargement signifier that began successful 2022. It expects to put $4.5 cardinal this twelvemonth successful large superior projects, with an further $2.2 cardinal to $2.5 cardinal planned for 2026. These projects volition grow its capableness and currency travel arsenic they travel online.

With its superior spending winding down and its currency travel connected the rise, Enterprise Products Partners expects to nutrient much escaped currency travel successful 2026 and beyond. That should alteration the MLP to instrumentality adjacent much wealth to investors done organisation increases and portion repurchases (it precocious expanded its buyback authorization from $2 cardinal to $5 billion).