5 Dividend Stocks That Are Too Cheap To Ignore

4. Enterprise Products Partners L.P. (NYSE:EPD)

Share Price as of October 10: $24.99

Enterprise Products Partners L.P. (NYSE:EPD) is a Texas-based midstream natural gas and crude oil pipeline company. It is one of the largest corporations in the US by revenue. In Q2 2022, the company reported strong cash generation, with its distributable cash flow coming in at $2 billion, compared with $1.6 billion during the same period last year. The company’s operating cash flow for the quarter also jumped to $2.1 billion, from $1.7 billion in the prior-year quarter.

On October 5, Enterprise Products Partners L.P. (NYSE:EPD) declared a quarterly dividend of $0.475 per share, in line with its previous dividend. The company is one of the best dividend stocks on our list because it has raised its dividends 22 years in a row. As of October 10, the stock’s dividend yield came in at 7.60%.

In June, Truist raised its price target on Enterprise Products Partners L.P. (NYSE:EPD) to $30 with a Buy rating on the shares, appreciating the company’s steady revenue growth over the years.

As of the close of Q2 2022, 23 hedge funds tracked by Insider Monkey owned investments in Enterprise Products Partners L.P. (NYSE:EPD), compared with 19 a quarter earlier. These stakes have a combined value of $184.4 million.

Fairholme Capital Management mentioned Enterprise Products Partners L.P. (NYSE:EPD) in its Q2 2022 investor letter. Here is what the firm has to say:

“Enterprise Products Partners L.P. (NYSE:EPD) is the largest position in the Fund. Enterprise provides processing and transportation services to producers and consumers of natural gas, natural gas liquids, and oil. These hydrocarbons are critical for modern life and have few if any, ready substitutes. Commodity prices do not greatly affect the company’s toll road fees. Enterprise is priced at less than nine times distributable cash flows and pays a 7.5% cash distribution.”