Enterprise Products Partners (EPD 0.73%) has been an income investor's dream stock for the past two decades. It's raised its distribution 39 consecutive quarters, and since its IPO in 1998 it's grown its distribution an impressive 7.5% annually. This has resulted in total returns of 20.9% over the last 18 years -- beating the market's 5.4% annual return by 284% annually.
However with a market capitalization of $72.25 billion, investors might wonder whether the law of large numbers will soon render Enterprise Products Partners a has been with its best days behind it. This article will explain why Enterprise Products Partners remains one of the best income investments in America and why it will continue to outperform the market on the back of continued strong distribution growth.
Enterprise Products Partners: the next decade
Analysts are actually forecasting Enterprise Products Partners' distribution growth rate will slightly accelerate, to 7.75% annually over the next decade. Given its current yield of 3.8%, this growth should provide for annual total returns of 11.5% through 2023. This is much slower than Enterprise's torrid growth rate of the last two decades, however it should still handily beat the market.
Enterprise Products Partners will be able to keep its distribution streak alive due to booming production of three main growth drivers: NGLs exports, natural gas exports, and continued oil production.