This Nearly 6.7%-Yielding Dividend Just Keeps Heading Higher
The first thing you need to know about Enterprise Products Partners (NYSE: EPD) if you are a dividend investor is that its yield is juicy 6.7%. The second thing is that this midstream master limited partnership (MLP) has increased its distribution annually for 27 consecutive years. Given the simple math of dividend yield, these two facts are tightly related and help explain why the unit price is in a three-year uptrend.
Dividend yield is simply the current annualized dividend payment a company offers divided by the current price. If the dividend payment goes up, the only way for the yield to stay the same is for the stock price to rise, too. Conversely, if the dividend falls, the yield will remain the same only if the stock price also falls. This may sound like stating the obvious, but it is important to keep in mind.
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Source Fool.com
