Dividend Paying Stocks http://www.dividend-paying-stocks.net All About the Best Dividend Paying Stocks Fri, 12 Apr 2013 00:58:29 +0000 en-US hourly 1 https://wordpress.org/?v=4.4.11 Best Dividend Paying Stocks Enterprise Products Partners (NYSE: EPD) http://www.dividend-paying-stocks.net/best-dividend-paying-stocks-enterprise-products-partners-epd/ Tue, 25 Oct 2011 05:36:55 +0000 http://www.dividend-paying-stocks.net/?p=46 Enterprise Products Partners EPD

The dividend paying stocks I would like to profile today have been on my radar screen for quite some time.  Enterprise Products Partners L.P.  is organized as a Master Limited Partnership (MLP).  However, before I present the profile, I would like to discuss briefly what a Master Limited Partnership is and how it works.

Simply put, an MLP is a publicly traded limited partnership.  An investor purchases shares of ownership which are referred to as units, similar to owning shares of stock in a company.  Once you own units in an MLP you are considered a unitholder (partner).

MLP’s are not subject to corporate income tax as long as they pass through 90% of their income to their partners.  Partners receive an IRS Schedule K-1 from the master limited partnership for dividend income received and are taxed at the unitholder level.  If you are unfamiliar with MLP’s, take some time to do some research before investing.  MLP’s can pay a portion of their dividend income in the form of unrelated business taxable income (UBTI).  This can cause a problem if you hold an MLP in a tax-deferred account and collect more than $1000 in UBTI.  For this reason, MLP’s are best held in a taxable brokerage account.

Enterprise Products Partners LP (NYSE: EPD)
Business: Energy MLP   Annual Dividend: $2.39 Yield: 5.57%
Payment Frequency: Quarterly   Recent Price: $44.15

Enterprise Products Partners L.P. is an energy sector MLP based out of Houston Texas. EPD is the largest publicly traded energy partnership in the nation and is a leading provider of energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, refined products and petrochemicals.   Since it’s initial public offering in July of 1998, EPD has grown it’s asset base from $715 million to $31 billion by December of 2010.  The asset base is broad and diverse. Here are just a few of their assets…

Enterprise Products Partners pipeline image

Pipelines

  • 50,200 miles of natural gas, NGL crude oil, refined products and petrochemical pipelines

Storage (Salt Dome)

  • 192 million barrels of NGL, refined products and crude oil storage capacity
  • 27 billion cubic feet of natural gas liquid (NGL) storage capacity

Natural Gas Processing

  • 25 natural gas processing plants

Marine Services

  • 58 tow boats
  • 117 barges

Fractionation

  • 19 NGL and propylene fractionators

Platforms

  • 6 offshore hub platforms

NGL Import/Export Terminals

  • Houston Ship Channel Import Terminal capacity – 14 thousand barrels per hour
  • Houston Ship Channel Export Terminal capacity – 7 thousand barrels per hour

New shale extraction technologies that allow for the extraction of natural gas from shale have been a windfall to the U.S. energy sector. Production has tripled from 2007 to 2010.  Net imports of natural gas in the U.S. have fallen significantly by 1.2 trillion cubic feet over the last three years, primarily due to new domestic reserves coming online.

As new domestic sources of natural gas come to market, the demand for new and expanded pipeline systems increases. For pipeline service providers like EPD, that translates into record profits.  EPD announced record results for the first quarter of 2011.  Revenues increased 19% versus the first quarter of 2010.  Net income per unit was $0.49 compared to $0.33 in the first quarter of 2010.

Dividend-Paying-Stocks.net loves the best dividend paying stocks and Enterprise Products Partners L.P. has an amazing track record for paying steady dividend income.  EPD raised it’s quarterly dividend to $0.6125 from $0.6050 making it the 29th consecutive quarter this MLP has raised it’s quarterly dividend. It was also the 38th time EPD has raised it’s dividend since 1998.

(full disclosure: I own shares of EPD)

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Best Dividend Paying Stocks Brookfield Infrastructure Partners (NYSE: BIP) http://www.dividend-paying-stocks.net/best-dividend-paying-stocks-brookfield-infrastructure-partners-bip/ http://www.dividend-paying-stocks.net/best-dividend-paying-stocks-brookfield-infrastructure-partners-bip/#comments Sun, 23 Oct 2011 13:26:35 +0000 http://www.dividend-paying-stocks.net/?p=49 The dividend paying stock that I would like to profile today is Brookfield Infrastructure Partners (BIP). BIP operates high quality, long-life assets around the world that generate stable cash flows and require minimal capital expenditures to maintain.  Due to the nature of its holdings and other monopolistic characteristics, BIP’s infrasturcture assets tend to appreciate in value over time. Its current business consists of ownership and operation of premier utilities assets, transport and energy sector assets, and timber assets in North America, South America, Australasia and Europe.

What does this mean in layman’s terms? It means if you own BIP, you own stakes in dozens of infrastructure monopolies across the entire world. And in addition to capital gains, Brookfield Infrastructure Partners pays investors a 5.54% dividend each year to own it (as of this writing).

Brookfield Infrastructure Partners Map of Operations

BIP holds 1.3 million acres of sustainable (renewable) timberlands in the Pacific Northwest and Canada. It holds electricity and gas trasmission operations in North America. It owns electricity transmission operations and toll roads in South America. It operates ports in the United Kingdom, all across Europe and even China. It operates coal facilities and railroads in Australia. And finally, BIP holds energy distribution operations in Europe and Australasia. These are assets with which no one can compete. A competitor isn’t going to build another electric grid or a new port.

Right now, BIP pays a quarterly dividend of $0.35 per unit. That’s a 27% increase during the past 10 months and gives the units a yield of 5.5%. Dividend-Paying-Stocks.net is bullish on Brookfield Infrastructure Partners and thinks this yield is going to rise. Not only does BIP explicitly state its aim is to raise its distributions 3-7% a year, but it also aims to return 60-70% of its income to investors in the form of dividends. In the most recent quarter, Brookfield Infrastructure Partners paid just 50% of its income in dividends so Dividend-Paying-Stocks.net feels this dividend paying stock has room to raise its distributions in the coming months to reach their target payout ratio.

Diversified High Quality Cash Flow

Stable Cash Flow Profile

Brookfield Cash Flow

Segment Diversification

Brookfield Diversification Diagram

Global Footprint

Brookfield Global Footprint Diagram

 

(full disclosure: I own shares of BIP)

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8 Dividend Paying Stocks Yielding 8% or Better http://www.dividend-paying-stocks.net/8-dividend-paying-stocks-yielding-8-or-better/ Sun, 23 Oct 2011 06:22:50 +0000 http://www.dividend-paying-stocks.net/?p=18 Have you been wishing you had more income lately? Are you concerned you might reach retirement and not have the income to cover your expenses? If your under the age of 55, you might be worried that social security will go bankrupt by the time your ready to retire or look vastly different than it does today. What if you lost your job tomorrow? These are all legitimate concerns. If this is the kind of stuff that keeps you up at night, you might want to focus on income investing with dividend paying stocks.

8 ball

Income investing has been pushed aside in favor of trying to predict the next big stock that’s gonna double your money in a mere matter of months. As people run around throwing money at volatile stocks that surge one day and crash the next, there’s a disciplined group of investors who are quietly building an ever increasing income stream from dividend paying stocks.

Today I’d like to present 8 different dividend paying stocks yielding 8% or better that can put you on the road to income investing. These picks are some of my favorites and were screened using my 8 Dividend Investing Rules. Here they are in no particular order…

Calamos Convertible Opportunities and Income Fund (CHI) is a closed-end fund portfolio with a mix of equities, convertible bonds and high-yield bonds.  CHI has an investment strategy of capital appreciation while delivering an attractive stable monthly income distribution.  Calamos Convertible Opportunities and Income Fund has an attractive yield of 8.53%.  CHI has paid a steady income distribution since the third quarter of 2002.  For further research, go to Calamos Convertible Opportunities and Income Fund.

Wells Fargo Advantage Global Dividend Opportunity Fund (EOD) is a closed-end fund investing primarily in a diversified portfolio of common stocks of U.S. and non-U.S. companies. EOD has an investment objective to seek a high level of current income. Wells Fargo Advantage Global Dividend Opportunity Fund has a secondary objective of long-term growth of capital.  has an EOD attractive yield of 11.16% and has paid a quarterly dividend since the third quarter of 2007.  For further research, go to Wells Fargo Advantage Global Dividend Opportunity Fund.

Main Street Capital Corporation (MAIN) is a principal investment firm that primarily provides long-term debt and equity capital to lower middle market companies. MAIN was recently named the 2011 Small Business Investment Company of the Year by the U.S. Small Business Administration. Currently, Main Street Capital Corporation offers a monthly dividend with a yield of 8.51%.  MAIN has paid a steady income distribution since the fourth quarter of 2007.  For further research, go to Main Street Capital Corporation.

Alpine Global Dynamic Dividend Fund (AGD) offers a unique and balanced approach to optimizing both tax-qualified dividend income and long-term growth of capital. AGD scans the globe looking for the best dividend opportunities for investors, employing a multi-cap, multi-sector, and multi-style investment approach. Alpine Global Dynamic Dividend Fund offers an attractive yield of 9.56%. AGD has been paying a monthly dividend distribution since September of 2006.  For further research, go to Alpine Global Dynamic Dividend Fund.

First Trust Active Dividend Income Fund (FAV) is a diversified, closed-end management investment company that seeks to provide a high level of current income. As a secondary objective, FAV seeks to provide capital appreciation. FAV pursues these investment objectives by investing at least 80% of its managed assets in a diversified portfolio of dividend-paying multi-cap equity securities of both U.S. and non-U.S. issuers. First Trust Active Dividend Income Fund has a handsome dividend yield of 10.63%.  FAV has been paying a quarterly dividend distribution since the fourth quarter of 2007.  For further research, go to First Trust Active Dividend Income Fund.

Hercules Technology Growth Capital (HTGC) is a leading specialty finance company devoted to addressing the capital needs of venture capital and private equity-backed technology-related companies, including clean technology, life sciences and lower middle market companies at all stages of development. HTGC offers a dividend yield of 8.45%.  Hercules Technology Growth Capital has been paying a quarterly dividend distribution since the fourth quarter of 2005.  For further research on HTCG, please go to Hercules Technology Growth Capital.

The GDL Fund (GDL) is a closed-end fund whose objective is to achieve absolute returns in various market conditions without excessive risk to capital. To achieve its investment objective, GDL will invest primarily in securities of companies involved in publicly announced mergers, takeovers, tender offers and leveraged buyouts. The GDL Fund has a yield of 9.55%. GDL has been paying a quarterly dividend distribution since the second quarter of 2007.  For further research, go to The GDL Fund.

American Capital Agency Corp (AGNC) is a REIT that invests in agency pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by a U.S. Government agency or a U.S. Government-sponsored entity. AGNC has a jaw-dropping yield of 18.67%.   American Capital Agency Corp has been paying a quarterly dividend distribution since the second quarter of 2008.  For further research on AGNC, please go to American Capital Agency Corp.

(full disclosure: I own CHI, EOD, MAIN, AGD and AGNC)

This completes my list of 8 dividend paying stocks yielding 8% or better.  Dividend Paying Stocks offers analysis and commentary on the best dividend paying stocks so be sure to subscribe to our RSS feed or grab a subscription by email.  Thanks for stopping by!

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