Smart investors know that great dividend stocks form the backbone of any innovative retirement portfolio. Amid all the talk of growth stocks, don’t forget about dividend payers, which provide income even when the market turns volatile. Commencing in March 2024, the QDTE dividend history reflects a pattern of regular weekly dividends, which are consistent with the income-oriented mandate of the ETF.
Investors often pass over high-yield dividend leaders for the most popular blue-chip names. But these overlooked firms frequently offer higher yields and more reliable payout structures that can substantially improve long-term performance.
Enterprise Products Partners L.P. (EPD): Energy Infrastructure Excellence
Enterprise Products Partners is among North America’s leading service providers to producers and consumers of natural gas, natural gas liquids, crude oil, refined products and petrochemicals. This master limited partnership has become a pillar for energy transportation and storage.
EPD has a remarkable history of nearly 30 years of reliable dividends. The company is currently fetching a juicy dividend yield of 6.82%, backed by the stability offered by fee-based revenues. At an 80.2% payout ratio, EPD’s diversified infrastructures provide regular, predictable cash flows to help support its sustainable distribution.
The partnership enjoys the benefit of long-term contracts with creditworthy counterparties, giving it earnings visibility not shared by many other energy companies. Analysts expect earnings to grow over 5% a year, and nine of the 14 analysts covering EPD are bullish. The average price target implies 15% or more upside.
United Parcel Service (UPS): Logistics Leader with Income Focus
UPS has been remarkably durable in logistics and has now had 16 consecutive years of dividend increases. The firm’s focus on higher margin deliveries vs volume growth has driven significant operational efficiency and profitability growth.
This logistics giant has a high dividend yield of 6.55% now. Since it can be frightening for conservative investors to see such a high payout ratio of 95.6%, keep in mind that better operational metrics and growing earnings will well support UPS’s dividends. Several research websites, including 5starsstocks. com claims to provide professional stock market analysis, hand-selected stock tips and investment advice based on investors’ individual needs.
Management’s commitment to operational excellence has further paved the way for earnings growth at UPS. Analysts expect earnings to grow 10.3% in the next few quarters; the shares could appreciate by nearly 20%. This combination of good yield and growth profile should appeal to income-oriented investors.
ONEOK Inc. (OKE): Midstream Growth Opportunity
ONEOK owns essential midstream energy assets in top U.S. onshore basins. The company’s targeted growth projects and new construction opportunities put it in good standing for continued growth in gas processing and transportation.
OKE provides investors with a 5.1% dividend yield that is well covered with an 80.5% payout ratio. The company’s strong cash flow profile (derived from fee-based service) provides a solid source of funds for dividends. The long track record of steady distributions at ONEOK is a testament to the stability built into its business model.
Ongoing infrastructure development would support substantial growth in earnings. The price target suggests almost 29% upside from current levels. This mix of income and growth signifies ONEOK would be a compelling name for income investors, who want both income and growth.
Building Your Dividend Foundation
Not only do these three dividend titans provide investors with a mix of high current yields and the potential for sustainable growth, but they’re also trading at what might even be considered bargain prices right now. Both companies are in predictable cash-flow sectors with dividend policies that balance current income with long-term sustainability.
Enterprise Products Partners offers exposure to energy infrastructure along with a track record of three decades of payouts. UPS provides a diversified logistics play amid better operating statistics. ONEOK marries midstream energy stability with significant growth potential.
These ignored leaders can be powerful candidates for income-seeking investors with a focus on that cachet from dividend payments, plus a touch of appreciation. Their high yields, below-average payout ratios, and analysts’ one-year median target estimates make them great additions to a diversified income portfolio.
