Core Insights - Abbott's diversified business portfolio is positioned to drive momentum in 2025 despite foreign exchange challenges [1] - The stock currently holds a Zacks Rank 3 (Hold) [1] Factors Driving Abbott Shares - Abbott's Established Pharmaceuticals Division (EPD) saw an 8% organic sales increase in Q1 2025, leveraging its presence in emerging markets [2] - The company has secured rights to 15 biosimilar products and recently agreed to commercialize four additional biosimilars across various regions, enhancing its position in the branded generic pharmaceutical market [2] Diagnostics Business Expansion - Abbott's Diagnostics business accounted for 20% of total revenues in Q1 2025, with a 6.5% growth in Core Laboratory Diagnostics (excluding China) [3] Diabetes Care Growth - The FreeStyle Libre continuous glucose monitoring system has achieved global leadership, with sales in Diabetes Care growing 21.6% to over $1.7 billion in Q1 2025 [4][5] Stock Performance - Year-to-date, Abbott shares have gained 17.7%, outperforming the industry's 1.7% improvement, driven by expansion in high-growth areas and new product launches [6] Concerns for Abbott - Foreign exchange impacts were unfavorable, contributing to a 2.8% decline in sales year-over-year in Q1 2025 [7] - Rising raw material and freight costs, along with a challenging macroeconomic environment, may affect Abbott's business in the coming months [8] - Selling, general, and administrative expenses increased by 3.4% in Q1 2025 [9]

Core Viewpoint - Enterprise Products Partners (EPD) is experiencing a mixed performance in the market, with a recent stock price of $30.70 and a notable decline over the past month, while upcoming earnings are anticipated to show slight growth in EPS but a decrease in revenue [1][2]. Company Performance - EPD's stock price remained unchanged at $30.70, underperforming compared to the S&P 500's gain of 1.67% on the same day [1]. - Over the past month, EPD shares have decreased by 8.36%, which is better than the Oils-Energy sector's decline of 10.69% but worse than the S&P 500's loss of 6.57% [1]. Upcoming Earnings - The company is set to release its earnings report on April 29, 2025, with an expected EPS of $0.70, reflecting a 6.06% increase from the same quarter last year [2]. - Revenue is projected to be $14.19 billion, indicating a 3.83% decrease compared to the equivalent quarter last year [2]. Full Year Estimates - For the full year, earnings are estimated at $2.91 per share and revenue at $57.77 billion, showing increases of 8.18% and 2.76% respectively from the previous year [3]. - Recent analyst estimate revisions suggest a positive outlook for EPD's business and profitability [3]. Analyst Ratings - EPD currently holds a Zacks Rank of 2 (Buy), with a 0.21% increase in the consensus EPS estimate over the last 30 days [5]. - The Zacks Rank system has a strong track record, with 1 stocks averaging a 25% annual return since 1988 [5]. Valuation Metrics - EPD is trading at a Forward P/E ratio of 10.54, which is lower than the industry average of 11.83 [6]. - The company has a PEG ratio of 1.25, compared to the Oil and Gas - Production Pipeline - MLB industry's average PEG ratio of 1.04 [7]. Industry Context - The Oil and Gas - Production Pipeline - MLB industry is ranked 22 in the Zacks Industry Rank, placing it in the top 9% of over 250 industries [8]. - Higher-rated industries tend to outperform lower-rated ones by a factor of 2 to 1 [8].

Core Viewpoint - Energy Transfer (ET) offers an attractive yield of approximately 7.6%, significantly higher than the broader market's yield of 1.3% and the average energy stock's yield of around 3% [1] Company Overview - Energy Transfer operates as a midstream business, owning energy infrastructure such as pipelines and storage assets that facilitate the movement of oil and natural gas globally [2] - The company charges fees for the use of its energy assets, functioning similarly to a toll on a bridge [2] Industry Context - The midstream sector is essential for the energy industry, as it ensures the movement of oil and gas regardless of price fluctuations, leading to relatively reliable cash flows throughout economic cycles [3] Comparison with Peers - Energy Transfer's business model is not unique; for instance, Enterprise Products Partners (EPD) operates similarly but offers a lower yield of 6.9%, which may be a more prudent choice for investors [4] - Enterprise Products Partners has a history of increasing its distribution consistently, even during uncertain times, contrasting with Energy Transfer's past distribution cut [7][8] Reliability Concerns - Energy Transfer's distribution has been increasing since 2021 after a significant cut in 2020, which raised concerns about its reliability among dividend investors [5] - The lack of explanation for the 2020 distribution cut and the subsequent focus on debt reduction during uncertain times has led to skepticism regarding Energy Transfer's commitment to consistent payouts [5][8] Investor Considerations - For dividend investors prioritizing income consistency, Enterprise Products Partners may be viewed as a better option due to its track record of regular increases, despite its lower yield [9]

Core Viewpoint - The article emphasizes the importance of identifying stocks with attractive dividends amidst market volatility, particularly due to the impact of tariffs on stock performance. Group 1: Energy Transfer and Enterprise Products Partners - Energy Transfer and Enterprise Products Partners are two major midstream master limited partnerships (MLPs) in the U.S. with strong distributions well covered by their distributable cash flow [2][3] - Energy Transfer has a forward yield of 8.3%, while Enterprise Products Partners has a yield of 7.4% [2] - Both companies benefit from increasing natural gas demand and have a fee-based business model, which helps protect cash flow during economic downturns [3] - They are currently in growth mode, but tariffs on products like steel may increase project costs, potentially affecting project returns [4] - Energy Transfer trades at an enterprise value (EV)-to-EBITDA multiple of 8.1 times, while Enterprise trades at 9.8 times, both below the historical average of 13.7 times [5] Group 2: Philip Morris International - Philip Morris International is a growth stock in a defensive industry with a current yield of 3.6% [6] - The company has minimal exposure to tariffs, as its products are primarily sold and manufactured outside the U.S. [7] - Growth is driven by its smokeless portfolio, particularly Zyn and IQOS, with Zyn volumes increasing by 46% last quarter [8] - Zyn has six times the product contribution level compared to traditional cigarettes, while IQOS has 2 to 2.5 times [9] - The stock is attractively valued with a forward P/E ratio of just over 21 times and a PEG ratio under 0.4, indicating it is undervalued [10] Group 3: Verizon - Verizon Communications offers a 6.4% yield and is considered attractive due to the essential nature of its services during economic downturns [11] - The company has experienced modest overall revenue growth but strong subscriber growth in wireless and broadband [12] - Verizon is leveraging its network for the AI market with its AI Connect solution, which is being utilized by major companies like Alphabet and Meta Platforms [13] - The company generated $19.8 billion in free cash flow last year, significantly exceeding its $11.2 billion in dividends, allowing for potential dividend increases and investments [14]

Group 1 - The stock market has experienced a significant sell-off, leading to many stocks appearing undervalued, particularly in the high-yield sector [1] - There is considerable uncertainty regarding the duration and extent of tariffs, which may impact investment decisions [1] Group 2 - The company invests substantial resources, over $100,000 annually, into identifying profitable investment opportunities [2] - The investment strategy has garnered over 180 five-star reviews from members, indicating a positive reception and effectiveness [2]

Group 1 - The stock of Enterprise Products Partners (EPD) has experienced a downtrend, declining 7.8% over the past four weeks due to excessive selling pressure, but it is now in oversold territory, indicating a potential turnaround [1] - The Relative Strength Index (RSI) for EPD is currently at 26.35, suggesting that the heavy selling may be exhausting itself and a reversal could occur soon [5] - Analysts covering EPD have raised earnings estimates for the current year, resulting in a 0.5% increase in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation [7] Group 2 - EPD holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating strong potential for a near-term turnaround [8]

Company Performance - Enterprise Products Partners (EPD) ended the latest trading session at $34.22, reflecting a +0.23% adjustment from the previous day's close, trailing the S&P 500's daily gain of 0.38% [1] - The stock has risen by 1.22% in the past month, lagging behind the Oils-Energy sector's gain of 2.26% and outperforming the S&P 500's loss of 5.59% [1] Upcoming Earnings - Analysts expect Enterprise Products Partners to report earnings of $0.70 per share, indicating a year-over-year growth of 6.06%, with a revenue estimate of $14.28 billion, down 3.26% from the prior-year quarter [2] - For the full year, earnings are projected at $2.91 per share and revenue at $58.1 billion, representing changes of +8.18% and +3.34% respectively from last year [3] Analyst Forecasts - Recent revisions to analyst forecasts for Enterprise Products Partners are important as they reflect changing near-term business trends, with positive estimate revisions seen as a good sign for the company's outlook [4] Valuation Metrics - The current Forward P/E ratio for Enterprise Products Partners is 11.73, which is a discount compared to the industry's average Forward P/E of 13.24 [7] - The company has a PEG ratio of 1.39, compared to the Oil and Gas - Production Pipeline - MLB industry's average PEG ratio of 1.17 [8] Industry Position - The Oil and Gas - Production Pipeline - MLB industry, part of the Oils-Energy sector, holds a Zacks Industry Rank of 12, placing it in the top 5% of over 250 industries [9]

Industry Overview - The pipeline sector is currently one of the best investment opportunities due to its consistent and predictable business models, attractive distributions, and robust yields [1] - The sector is inexpensive compared to historical levels, with a favorable environment for pipeline stocks [1] Company Discipline - Companies in the energy and pipeline sectors are exhibiting more discipline, focusing on cash flow growth rather than production growth, leading to healthier customer bases for pipeline companies [2] - Midstream companies are operating with lower leverage and better distribution coverage, having learned to manage within their cash flow means [2] Demand Drivers - The increasing power needs of artificial intelligence (AI) are driving demand for natural gas, creating new project opportunities for pipeline companies [3] - The favorable regulatory environment under the Trump administration is encouraging more drilling in the fossil fuels industry [3] Company Highlights Energy Transfer - Energy Transfer has one of the largest integrated midstream systems in the U.S. and is trading at an enterprise value (EV)-to-EBITDA multiple of just over 8 times, significantly below the historical average of 13.7 times [4] - The company offers a forward yield of 6.9% and plans to increase its distribution by 3% to 5% annually, with its distribution well covered by distributable cash flow (DCF) [5] - Energy Transfer plans to spend $5 billion in growth capex this year, up from $3 billion in 2024, with opportunities in AI data centers [6] Enterprise Products Partners - Enterprise Products Partners has increased its growth capex budget to between $4 billion to $4.5 billion this year, reflecting a strong growth project environment [7] - The company has consistently increased its distribution for 26 years, currently offering a yield of 6.3% that is well covered by DCF [8] - The stock trades at a forward EV/EBITDA of 10 times, which is still below historical averages despite its premium valuation due to consistency and a strong balance sheet [9] Western Midstream - Western Midstream has the highest yield among the listed companies at 8.5%, with plans to raise its base distribution by around 4% in 2025 [10] - The company serves as the midstream provider for Occidental Petroleum, which owns over 40% of its stock, and has a strong balance sheet with leverage below 3x [11][12] - Western Midstream announced the Pathfinder Pipeline project, expected to cost between $400 million to $450 million, setting the stage for growth in future years [13]

Core Insights - Companies like Enterprise Products Partners and NNN REIT are highlighted for their ability to provide high dividend yields and consistent payout increases, making them attractive for income-focused investors [2][12] Enterprise Products Partners (EPD) - EPD currently offers a dividend yield of 6.3%, translating to $6.30 of annual passive income for every $100 invested, with a history of 26 consecutive years of payout increases [3][12] - The company operates a diversified energy midstream infrastructure portfolio, generating stable cash flows supported by long-term contracts, covering its distribution comfortably at a ratio of 1.7 times [4][12] - EPD has $7.6 billion in major projects under construction, which are expected to enhance cash flow in the coming years, alongside ongoing development projects for long-term growth [5] - The company maintains a strong balance sheet and the highest credit rating in the midstream sector, allowing for strategic acquisitions, such as the $950 million purchase of Pinon Midstream, which is expected to boost cash flow per share [6][12] - The combination of organic growth and acquisitions positions EPD to continue increasing its distributions [7] NNN REIT - NNN REIT currently has a dividend yield of 5.5%, providing $5.50 of income for every $100 invested, with a 35-year streak of increasing dividends [8][12] - The REIT focuses on single-tenant retail properties under net lease agreements, which provide stable cash flow as tenants cover most operating expenses [9] - NNN REIT conservatively pays out less than 70% of its core funds from operations in dividends, allowing for significant cash retention for further investments, with an expected free cash flow of about $200 million in 2025 [10] - The REIT actively partners with retailers to expand their operations, often acquiring properties through sale-leaseback transactions, which has accounted for over 70% of its investment volume since 2007 [11] - The growing portfolio and strategic capital recycling should enable NNN REIT to continue increasing its high-yielding payouts [11][12]

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