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UPS or Enterprise Products Partners? Weighing High Yields and Dividend Risk

Fresh analysis favors Enterprise for steadier income given its fee-based cash flows.

Overview

  • UPS offers a roughly 6.5% dividend yield after a stock slide tied to post-pandemic volume normalization and an ongoing business overhaul.
  • The company’s payout ratio sits above 100%, raising questions about dividend sustainability and the possibility of a board-led reset.
  • Enterprise Products Partners pays a forward dividend of $2.18 per share for a yield near 6.8% and has increased its distribution for 28 consecutive years.
  • Enterprise’s revenue is supported by long-term, fee-based contracts with minimum volume commitments that reduce exposure to commodity-price swings.
  • The partnership runs an integrated network exceeding 50,000 miles of pipelines and related assets positioned for rising natural gas demand from AI data centers and LNG exports.