Enterprise Hikes Dividend by 5.3%, Provides 5.4% Yield

Enterprise Products Partners L.P.

revealed that its board declared an increase in the quarterly cash distribution to $0.40 per common unit, or $1.60 per unit on an annualized basis. According to the company, this distribution represented a 5.3 percent increase from the distribution made in the second quarter of 2015. The current dividend provided a yield of 5.4 percent, which is higher than the five-year average yield of 4.6 percent. Enterprise Products Partners said that the latest distribution was in line with its plan to hike the dividend as indicated in January. The company has been increasing its dividend rate for 17 straight years. The latest is the 57th distribution increase after its IPO in 1998 and the 48th straight quarterly increase. As a result, its five-year average growth rate was 5.74 percent while the three-year average growth pace was 5.84 percent. The company said that the quarterly distribution would be paid on August 5 to unitholders of names appearing as of July 29. Enterprise said that it would announce its earnings for the second quarter on July 28 before the market opens. Following the announcement, the partnership will host a conference call at 9 a.m. CT with analysts and investors to discuss earnings. The call will be webcast live on the Internet and may be accessed through the "Investors" section of the partnership's website, On Thursday, the stock shed 0.17 percent at the time of writing this.