Enterprise Products Partners (EPD) is trading at a yield of ~6.2%, which is ~380 basis points higher than the US ten-year Treasury yield. Interestingly, this spread was just ~170 basis points five years back. With the US ten-year Treasury yield roughly around the same level as it was five years ago, the rise in the EPD-Treasury yield spread was largely attributed to the rise in Enterprise Products’ yield.
The above graph shows Enterprise Products Partners’ forward distribution yield, and the US ten-year Treasury yield over the last five years. As the graph shows, EPD’s yield averaged ~6.3% over the last three years, which was higher than the average of ~5.7% over the last five years.
Enterprise Products Partners’ yield rose from ~4.0% at the end of 2014 to close at 8% in February 2016 when the stock price fell close to $20. Since then, the yield has lowered, though it remained higher than the five-year average.
Enterprise Products Partners’ yield has remained relatively range-bound over the last three years, reflecting the sideways movement of the stock’s price, as discussed in the previous article.
At ~6.2%, Enterprise Products Partners has a higher yield than some of its peers. Plains All American Pipeline (PAA) is trading at a yield of ~5.0%, and Kinder Morgan (KMI) is trading at a yield of ~4.0%. In comparison, Energy Transfer (ET) and Magellan Midstream Partners (MMP) are trading at higher yields of ~8.0% and 6.6%, respectively.
Enterprise Products Partners has increased distributions for 58 consecutive quarters. Its coverage ratio for 2018 was 1.5x.
Let’s next take a look at EPD’s distributable cash flow growth over the years.
Enterprise Products Partners (EPD) spent $3.9 billion on growth projects in 2018.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.