Enterprise Products Partners: High-Conviction Play Going Into 2026
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Andres Veurink216 FollowersFollow5ShareSavePlay(18min)CommentsSummaryEnterprise Products Partners is rated a Strong Buy due to its robust core operations, consistent volume growth, and 27-year streak of distribution increases.EPD’s fee-based toll model ensures highly predictable revenues, supporting a forward yield of 6.77% and a potential 5%+ annual distribution growth.Volume growth in NGL and natural gas pipelines, strategic acquisitions, and efficient capital allocation drive sustainable margin expansion and future distribution coverage.EPD trades at a discount to peers on EV/EBITDA and Price/Book, offering 28.1% more value via distributions and buybacks, with minimal risk to payout sustainability. Maksim Safaniuk/iStock via Getty Images Investment Thesis Enterprise Products Partners (EPD) is reliability materialized. It has been incredibly strong, delivering a raise to its quarterly distributions for 27 years straight, and with potential now to accelerate its compounded 5-year average toThis article was written byAndres Veurink216 FollowersFollowMy name is Andres Veurink and I have been in the financial markets for over a decade at this point, spending the majority of that in a hedge fund here in Rotterdam, working my way up as an analyst. My work relfect rigourious standards as I myself have a very high standard as to what I invest my money in. My preferred sectors to follow are tech, specifically SaaS and cloud business. I find these offer incredible growth opportunities and are also very fun to research and follow. It's a very active space with plenty of news coming out each week. Work is my own thoughs and research is done only by myself.Analyst’s Disclosure:I/we have a beneficial long position in the shares of EPD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Quick InsightsWhat underpins the Strong Buy rating for EPD?EPD’s reliable fee-based revenue, strong volume growth, and disciplined capital allocation support a sustainable 6.77% yield and ongoing distribution increases, justifying a Strong Buy.Recommended For You