In poker, blue chips carry the highest value, and the name has attached itself to the highest-quality stocks. The blue chips have a reputation for holding their value and providing a degree of defense to investors’ portfolios, making them attractive at a time of increased market volatility and generally falling share prices.
The blue chip dividend payers are particularly attractive, as they combine the twin pillars of quality and long-term payment reliability.
So let’s follow this line, and take a look at two of the higher quality dividend stocks out there. These are stocks with years-long histories of keeping up reliable payments, more recent histories of dividend increases, and yields high enough to provide a degree of insulation against the current rate of inflation. It also doesn’t hurt that both stocks are admired by the analyst community, enough so to earn a “Strong Buy” consensus rating.
Enterprise Products Partners (EPD)
The first stock we’ll look at, Enterprise Products, is a midstream company in the energy industry. Its business is moving product, getting the crude oil, the natural gas, and the natural gas liquids pulled out of the ground by producers from the well heads and into the transport network of pipelines and transfer terminals and the storage infrastructure of tank farms and refineries.
Enterprise’s assets include a wide-ranging network of pipelines and storage sites, stretching from Appalachian gas fields of Pennsylvania, the Great Lakes region, the Southeast, and the Rocky Mountains, into Texas and the Gulf Coast region, where there are processing facilities, storage farms, refineries, and import/export terminals. It’s large scale business, and Enterprise commands a market cap of more than $55 billion.
More importantly than its business network or company size, Enterprise has seen its shares gain in this year’s volatile trading, with a year-to-date net increase of 27%.
These share gains have come as the company’s revenues and earnings have also grown. In the most recent quarterly earnings release, from 2Q22, Enterprise showed…