When it comes to successful investing, time in the market beats timing the market. Steady returns, such as from dividends, can snowball a modest grubstake into a large portfolio balance over time. That’s what makes high-quality dividend stocks, particularly those with long track records of payout growth, so appealing to investors of all stripes.
Among high-yield dividend stocks (or monster dividend stocks, if you will), two stand out as strong choices for sustainable payout growth and price appreciation potential: Enterprise Products Partners (NYSE: EPD) and Verizon Communications (NYSE: VZ). Both companies, essentially “toll operators” of one kind or another, may lack the excitement of AI stocks or other hot investing trends, but based on track records and current developments, they have the ingredients in place to deliver strong total returns in the years ahead.
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A midstream energy powerhouse with a decades-long dividend growth streak
Enterprise Product Partners is a master limited partnership (MLP) that is one of America’s largest midstream energy companies. That is, Enterprise owns a vast network of pipelines and other midstream energy assets such as storage terminals.
Hence, the toll booth comparison above. Rather than its success hinging on crude oil and gasoline prices, as is the case with downstream and upstream energy stocks, Enterprise generates steady cash flow from the fixed fees it collects for the use of its infrastructure.
Because it’s an MLP and must distribute 90% of pretax income, the company pays out the lion’s share of this cash as distributions. Currently, it has a forward dividend yield of around 6%. Those considering investing in the stock should be aware,…
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