Top dividend stock Enterprise Product Partners (EPD) is back in the spotlight, boasting an impressive 7.2% yield alongside improving fundamentals.

X

Operating as a master limited partnership, or MLP, Houston-based Enterprise Products controls over 50,000 miles of crude oil and natural gas pipelines. It also maintains natural gas storage facilities and processing sites.

Since Enterprise Product Partners was featured in this column in August, the company has once again increased its distribution, to 51.5 cents per quarter, at the start of this year. That marked the 26th straight year of dividend increases for the company.

With a current annualized yield of 7.2%, Enterprise Products stands out as a top dividend stock, far surpassing the 1.3% average of the S&P 500.

Enterprise Products will pay its next distribution of 51.5 cents on May 14. The ex-dividend date is April 29.

Earnings Report Nears For Top Dividend Stock

The company will report first-quarter earnings on April 30. Analysts estimate earnings per share of 67 cents, a year-over-year increase of 5%. Wall Street expects revenue to rise 11% to $13.83 billion.

Annual earnings are projected to rise from $2.53 per  share in 2023 to $2.71 this year, further increasing to $2.84 in 2025.

Given their highly predictable cash flows, pipeline stocks like Enterprise Products are cornerstones in any income-based portfolio. While these companies have exposure to changes in energy prices, that risk is far lower than it is for energy producers.

With debt rated at an A- from S&P Global, conservative investors can find reassurance in the stock.

Additionally, shares have demonstrated remarkable stability, with less than 13% annualized volatility over the past year. To put this into perspective, this volatility is lower than that of defensive stalwarts Procter & Gamble (PG) and Coca-Cola (KO), which also offer far lower distributions.

Although the dividend stock surpassed a 27.95 buy point in March, it currently remain within a 5% buy zone. The stock has pulled back to the 50-day moving average, where it is getting support. Keep in mind that market risk is high right now.

YOU MAY ALSO LIKE:

Stock Market Rallies Amid Presidential Election Drama

IBD Live: Learn And Analyze Growth Stocks With The Pros

Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest