This Elite High-Yield Dividend Stock Just Flexed Its Financial Strength
Enterprise Products Partners (NYSE: EPD) is a financial fortress. The master limited partnership (MLP) has the highest credit rating in the midstream energy space. That allows it to raise capital at lower rates and better terms than financially weaker rivals.
That strength also gives it the flexibility to pay a high-yielding distribution (currently 7.5%) while funding growth. It recently flexed those muscles by raising $2 billion in low-cost debt. That further enhanced its financial flexibility, and put its payout on an even firmer foundation.
Enterprise Products Partners took care of its 2024 funding needs early. The MLP priced a public offering of $2 billion of senior notes this month. It sold $1 billion of 4.6% notes due in 2027 and $1 billion of 4.85% notes due in 2034. That's a bit cheaper than the last time it sold notes a year ago. (At that time, it sold $750 million of 5.05% notes due in 2026 and $1 billion of 5.35% notes due in 2033.) The company benefited from its investment-grade bond rating (A-/A3) and the expectation that the Federal Reserve will start cutting interest rates in 2024.
Source Fool.com
