Enterprise Products Partners (NYSE:EPD) — This integrated provider of natural gas and natural gas liquid services is experiencing demand for pipeline services.
On our Top Stocks to Buy for December list, with the stock at $44, we said, “The company is well-positioned to benefit from its strong asset base and geographical position, and is expanding its infrastructure to capitalize on the natural gas drilling in the Eagle Ford and Haynesville shales and the Permian Basin, which are all major sources of natural gas. The company has no general partners, thus avoiding incentive distribution rights.
“EPD has provided shareholders with a 9.5% total annualized return over the past 10 years, and has raised its dividend for 28 consecutive quarters. S&P has a ‘five-star strong buy’ on the stock with a price target of $54.”
EPD raised its dividend again on Jan. 17, and now yields 5.17%.
Technically the stock broke from a wide support zone in October and again in December. The fundamental analysts’ target for EPD is $54, but recent agreements with six major producing companies and a new SEKCO pipeline to bring crude oil to Gulf Coast refineries make for a very positive outlook. The new technical target is $60.
