Core Viewpoint - The article discusses two investment options in the energy sector for 2026: Chevron, which has exposure to oil and gas prices, and Enterprise Products Partners, a midstream company that avoids commodity risk [1]. Group 1: Enterprise Products Partners - Enterprise Products Partners offers a high yield of 6.2%, supported by 27 consecutive annual distribution increases, making it a reliable income investment [2]. - The company operates primarily as a toll-taker, charging fees for the use of its energy infrastructure, which helps it avoid commodity volatility risks [3]. - For investors prioritizing income and safety, Enterprise is likely the better choice for their portfolio [7]. Group 2: Chevron - Chevron has a diversified business model with exposure to upstream, midstream, and downstream segments, which exposes it to energy price volatility but helps mitigate extreme price fluctuations [4]. - The company offers a yield of 3.9%, with a history of annual dividend increases for over three decades, supported by a low debt-to-equity ratio of 0.22x [5]. - If oil prices rise sharply, Chevron is expected to outperform Enterprise in 2026, making it suitable for those seeking exposure to oil prices [6].

Group 1 - High Yield Investor is celebrating its fifth anniversary by offering a 30-day money-back guarantee, encouraging new memberships and the release of Top Picks for 2026 [1] - Many high-yield investment products provide limited growth potential, leading to a risk of income's purchasing power being eroded by inflation over time [1] Group 2 - Samuel Smith, a lead analyst and Vice President with a strong background in dividend stock research, leads the High Yield Investor group, focusing on safety, growth, yield, and value [2] - The High Yield Investor service includes real-money core, retirement, and international portfolios, along with regular trade alerts, educational content, and an active chat room for investors [2]

Core Insights - Bonds are currently perceived as a safe income investment, but the prevailing economic conditions are challenging this perception due to inflation and bond rates [1] Summary by Category Economic Conditions - Inflation is reported at approximately 2.7% as of December 2025 [1] - Average bond rates are in the mid 3% range according to U.S. data [1]

Core Insights - The midstream segment of the energy sector is highlighted as a prime area for ultra-high-yield stocks, focusing on companies that facilitate the transportation of oil and natural gas [1] Company Summaries - **Energy Transfer (NYSE: ET)**: Offers the highest yield at 7.2%. The company previously cut its distribution in half during the pandemic to strengthen its balance sheet, but it has since resumed growth, now exceeding pre-cut levels. Future distribution growth is projected at 3% to 5% annually, supported by capital investments of up to $5.5 billion by 2026, making it suitable for aggressive investors [2][3][4] - **Enterprise Products Partners (NYSE: EPD)**: Known for reliability, it has increased its distribution for 27 consecutive years and holds an investment-grade credit rating. Its distributable cash flow comfortably covers its distribution by 1.7 times, appealing to conservative investors. Expected distribution growth is similar to that of Energy Transfer [5] - **Enbridge (NYSE: ENB)**: A leader in the midstream industry with additional exposure to regulated natural gas utilities and clean energy assets. It aims to adapt its business to align with global energy transitions. Enbridge has increased its dividend for 30 consecutive years, making it a suitable option for those seeking a clean-energy hedge despite having the lowest yield among the three at 5.6% [6][7]

Core Insights - High Yield Investor is celebrating its fifth anniversary by offering a 30-day money-back guarantee, encouraging new memberships and the release of Top Picks for 2026 [1] - A common mistake among retirees is the false sense of security when investing in double-digit income yields, which may lead to unsustainable passive income beliefs [1] Company Overview - Samuel Smith, the lead analyst of High Yield Investor, has a diverse background in dividend stock research and holds degrees in Civil Engineering & Mathematics and a Master's in Engineering with a focus on applied mathematics and machine learning [1] - The High Yield Investor team, including Jussi Askola and Paul R. Drake, aims to balance safety, growth, yield, and value in their investment strategies [1] Service Features - High Yield Investor provides real-money core, retirement, and international portfolios, along with regular trade alerts, educational content, and an active chat room for investors [1]

This energy stock could be a reasonably safe pick in 2026.In a market obsessed with artificial intelligence stocks and high-flying meme names, midstream oil and gas player Enterprise Products Partners (EPD 0.48%) has not received the attention it deserves.This oil and gas pipeline operator, which is structured as a master limited partnership (MLP), offers a distribution (dividend) yield of 6.2% and has increased its distributions for 28 consecutive years.Enterprise Products Partners also boasts strong finan ...

Core Viewpoint - The pipeline company, Enterprise Products Partners, is expected to see growth accelerate through 2027 after overcoming challenges related to its LPG business and returning to normalized spreads [1][6]. Financial Performance - In Q4, Enterprise's total gross operating profit increased by 4% to $2.74 billion, with adjusted EBITDA also rising by 4% to $2.71 billion [3]. - Distributable cash flow (DCF) rose by 3% to $2.22 billion, while adjusted free cash flow was reported at $1.17 billion [3]. Business Model and Growth Outlook - Approximately 82% of Enterprise's gross operating profit in 2025 is derived from fee-based activities, returning to historical levels after benefiting from high differentials [2]. - The company forecasts adjusted EBITDA and cash flow growth at the lower end of a 3% to 5% range for 2026, with expectations of double-digit growth in 2027 as new projects commence [6]. Capital Management - Enterprise has reduced its capital expenditure budget for 2026 to a range of $2.5 billion to $2.9 billion from $4.4 billion in 2025, potentially generating around $1 billion in discretionary free cash flow in 2026 [6]. - The company maintained a 1.8x coverage ratio for its distribution in Q4 and ended the year with a leverage ratio of 3.3 times [5]. Stock Performance and Dividend - The current market capitalization of Enterprise is $76 billion, with a dividend yield of 6.23% and a forward yield of 6.4%, making it a consistent high-yield dividend stock [4]. - The company paid a quarterly distribution of $0.55 per unit, reflecting a year-over-year increase of 2.8% [5]. Strategic Positioning - With reduced capital expenditures, Enterprise is positioned to utilize discretionary free cash flow for debt reduction, share buybacks, or strategic acquisitions [8]. - The company is expected to continue increasing its distribution for the 28th consecutive year in 2026 [8]. Investment Timing - Given the projected growth ramp-up in 2027, now is considered an opportune time to invest in the stock [9].

Core Viewpoint - Enterprise Products Partners (EPD) is a strong income-generating investment with a current yield of 6.3%, significantly higher than the S&P 500's yield of 1.1% [1] Financial Performance - The company has increased its distribution for 27 consecutive years, indicating a strong commitment to returning value to investors [1] - The most recent quarterly distribution payment was set at $0.55 per unit, reflecting a 2.8% increase year-over-year [4] - In 2025, Enterprise Products Partners generated $7.9 billion in operational distributable cash flow, covering its distribution by 1.7 times and allowing for $3.2 billion in retained cash for reinvestment [7] Investment Requirements - To generate $1,000 in annual passive income, an investment of approximately $15,900 is needed at the current unit price of around $35, compared to over $87,700 required for an S&P 500 index fund [5] Growth Initiatives - The company invested $5 billion in expansion initiatives last year, including $4.4 billion on growth capital projects and $632 million on acquisitions, supported by a strong balance sheet [8] - Enterprise Products Partners plans to invest between $2.5 billion and $2.9 billion in growth capital projects this year and between $2 billion and $2.5 billion in 2027, which is expected to enhance free cash flow [9] Financial Stability - The company maintains a low leverage ratio of 3.3 times, contributing to its top-tier credit rating of A-, making it the only pipeline company with such a rating [8] - The strong financial profile allows the company to continue increasing its distribution and repurchasing common units, further strengthening its balance sheet [10]

Core Viewpoint - Enterprise Products Partners L.P. (NYSE:EPD) is recognized as one of the best long-term low-risk stocks to buy, with a recent price target increase from Scotiabank analyst Brandon Bingham indicating positive market sentiment towards the company [1][2]. Financial Performance - The company reported record EBITDA of $2.7 billion in Q4 2025, surpassing the previous record of $2.6 billion from Q4 2024 [3]. - Average oil prices were approximately $12 per barrel lower than 2024 levels, impacting pricing spreads that had previously supported earnings [5]. Operational Developments - A series of new assets were brought into service during 2025, including Frac 14, the Mentone West and Orion projects, and various gathering and treating assets in the Permian Basin, which contributed positively to performance despite some weaker results [4]. - The company's ethane export terminals and all 20 processing trains in the Permian are fully contracted, with strong demand for long-term commitments in LPG export capacity expected to continue through the end of the decade [6]. Business Overview - Enterprise Products Partners L.P. provides midstream energy services across various sectors, including natural gas, NGLs, crude oil, refined products, and petrochemicals, with a comprehensive portfolio that includes pipelines, processing, and storage facilities [7].

Core Viewpoint - Enterprise Products Partners L.P. (NYSE:EPD) is recognized as one of the best pipeline and MLP stocks to buy in 2026, reflecting positive long-term prospects in the energy infrastructure sector [1]. Analyst Ratings - Mixed sentiment exists among analysts regarding Enterprise Products Partners L.P. On January 28, 2026, RBC Capital maintained a Buy rating with a price target of $35, while Morgan Stanley issued a Sell rating with a price target of $34 [2]. - Earlier, on January 16, 2026, Scotiabank maintained a Sector Perform rating and raised the price target from $34 to $35, citing increasing power demand and significant LNG exports as drivers for long-term earnings [3]. Analyst Consensus - According to CNN, 57% of 23 analysts have assigned a Buy rating to Enterprise Products Partners L.P., with a 1-year median price target reflecting a 4.98% increase [4]. Company Overview - Founded in 1968, Enterprise Products Partners L.P. is based in Texas and provides services for natural gas, NGLs, crude oil, and petrochemicals through a comprehensive network of pipelines, storage, and processing assets [4].