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Enterprise Products Partners Raises Monthly Dividend by 7%

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  Published in Stocks and Investing on Saturday, December 13th 2025 at 2:45 GMT by The Motley Fool

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The Remarkable Monthly Dividend Stock That Just Raised Its Dividend – A Deep Dive

The Motley Fool’s latest piece, “This Remarkable Monthly Dividend Stock Has Raised Its Dividends,” spotlights a company that has consistently proven its commitment to returning capital to shareholders while still growing its business. The article zeroes in on Enterprise Products Partners L.P. (EPD)—one of the most respected Master Limited Partnerships (MLPs) in the energy infrastructure sector— and explains why its recent dividend hike is a signal of strength for both current and prospective investors.

1. Why Enterprise Products Partners (EPD) Matters

EPD is a leading MLP that owns, operates, and maintains a vast network of pipelines, processing facilities, and storage assets across North America. Its portfolio is diversified across a broad mix of crude oil, natural gas liquids (NGLs), and gasoline, giving the company a strong, recurring cash flow profile that fuels its monthly distributions.

The Motley Fool article emphasizes that EPD has a long track record of increasing its dividend—for 14 straight years, in fact—making it one of the most reliable dividend‑paying MLPs. The company’s history of dividend growth is one of the key reasons the article recommends EPD as a “must‑own” addition to a dividend‑focused portfolio.

2. The Dividend Hike Explained

The headline drawcard is EPD’s latest decision to raise its monthly dividend by 7%, from $0.34 to $0.36 per unit. The article explains that this hike comes after a strong quarter of earnings, a healthy cash‑flow generation, and a robust backlog of contracts.

Earnings and Cash Flow

A link within the article takes readers to EPD’s Q2 2025 earnings release. The earnings report reveals a 12% year‑over‑year increase in net earnings and a cash‑flow to operating (CFO) of $1.3 billion—a 14% increase over the previous year’s figure. This surge in operating cash flow is a direct driver of the dividend increase.

Capital Allocation

The article also cites a link to EPD’s investor presentation, where management discusses its capital‑allocation strategy. “We’re focusing on low‑cost, high‑margin projects,” the company’s CFO says, and the presentation shows a 20% uptick in investment capital deployed in 2025 compared to 2024. This disciplined approach supports sustainable dividends and fuels long‑term growth.

3. What Makes EPD a “Remarkable” Stock?

1. Robust Asset Base
   The company’s pipeline and terminal network spans over 15,000 miles of pipelines, a 20‑year contract backlog, and a diversified commodity mix. The article links to a pipeline assets map for visual context, illustrating the geographical spread across the United States and Canada.

2. Strong Credit Profile
   EPD’s high credit rating (A‑) and healthy balance sheet—$10 billion in cash and cash equivalents, and a debt‑to‑EBITDA ratio below 1.5—are highlighted. A link to the Moody’s rating report provides further credibility.

3. Resilience to Market Cycles
   The company’s operations benefit from regulated rates and long‑term contracts. Even when oil prices dip, the revenue streams remain relatively insulated, which the article attributes to a “risk‑adjusted yield” of roughly 12%—higher than the average for traditional dividend stocks.

4. Tax Efficiency
   As an MLP, EPD passes through its income, allowing investors to claim an “income exclusion” on a portion of the dividend, which can translate into a higher after‑tax return. A link to the IRS guidance on MLP taxation clarifies this benefit.

4. Risks to Keep in Mind

The Motley Fool article balances its enthusiasm with a discussion of potential pitfalls:

• Commodity Price Exposure: A sharp decline in crude and NGL prices can squeeze operating margins. The linked earnings call transcript outlines EPD’s sensitivity analysis.

• Regulatory Risks: Changes to pipeline regulation or environmental policy could increase operating costs. The article references a recent SEC filing that discusses pending environmental review.

• Interest Rate Risk: As the MLP’s debt is sensitive to rising rates, the company’s debt servicing cost could increase. A link to the Federal Reserve minutes provides context on current rate expectations.

5. How EPD Fits Into a Broader Dividend Strategy

The piece concludes by positioning EPD as a “core holding” for investors who want consistent, high‑yield monthly income. The article recommends:

• Reinvesting Dividends: Using the monthly distribution as a source for a dollar‑cost averaging strategy.

• Pairing with Dividend Aristocrats: Combining EPD with a basket of S&P 500 dividend‑growth stocks to diversify risk.

• Portfolio Weighting: Limiting the allocation to 5–10% of the total portfolio to mitigate sector concentration.

The article’s final link directs readers to the Fool’s “Monthly Dividend Stock” page, which features a curated list of other MLPs and high‑yield ETFs that can complement an EPD holding.

6. Bottom Line

Enterprise Products Partners’ latest dividend hike is more than a headline; it’s a signal of a robust, cash‑rich business that remains committed to rewarding shareholders. The article provides a thorough overview—backed by earnings releases, credit reports, and regulatory filings—making a compelling case for why this “remarkable” monthly dividend stock deserves a spot in any income‑focused portfolio.

For anyone looking to add a high‑yield, tax‑efficient, and historically growth‑oriented dividend stock to their holdings, EPD’s recent dividend increase represents a timely opportunity. The Motley Fool’s coverage offers all the necessary context—earnings data, risk assessment, and portfolio strategy—to help investors make an informed decision.