Up 18% in This Bear Market, Is Enterprise Products Partners Still a Winner?
Shares of oil and natural gas pipeline and processing company Enterprise Products Partners (NYSE: EPD) gained 9.8% in 2022 -- impressive compared to the 19.4% decline for the S&P 500. But when you factor in its sizable distributions -- the special type of dividend paid by partnerships -- investors who held onto Enterprise stock for the entire year actually generated total returns of 18.2%.
I can't say that the midstream company did nothing over the past year, but it certainly didn't make any needle-moving changes one could point to as catalysts for its stock price gain. It made a $3.25 billion acquisition of Navitas Midstream early in 2022; announced some new future projects to expand its footprint; and its earnings each quarter showed the typical progress investors have come to expect from this company.
It's perhaps simplest to put it this way: Enterprise Products Partners continued to deliver shareholder value, and investors recognized that about it during a period when many other businesses could not say the same.
Source Fool.com
