Companies around the world paid a record $606.1 billion in dividends to their shareholders during the second quarter — 8.2% more than the prior-year period. Nearly 90% of dividend-paying companies have either held their payments steady or raised them over the past year.
This data suggests that right now is a great time for dividends. However, that’s not always the case. Downturns and recessions can severely impact the ability of some companies to continue making those payments.
While some companies might at some point be unable to maintain their dividends, Enterprise Products Partners (NYSE: EPD), Enbridge (NYSE: ENB), and American States Water (NYSE: AWR) are models of dividend durability. They’ve continued doling out those payments to investors over the years no matter what. Because of that, they stand out to a few Fool.com contributors as great stocks to buy for those seeking reliable dividend payments.
Enterprise is ready to pay you (well)
Reuben Gregg Brewer (Enterprise Products Partners): The honest truth is that most investors will probably find Enterprise Products Partners’ 7.2% distribution yield to be the main attraction of its stock. Given the S&P 500‘s miserly current yield of just 1.2%, that’s not shocking. But when it comes to creating a passive income stream, there’s a lot more than that to like about Enterprise Products Partners.
For starters, there’s its position as one of the largest midstream energy businesses in North America. It owns a virtually unduplicatable network of energy infrastructure assets — pipelines, storage facilities, processing facilities, and more — that produces reliable fee income over time. That is what supports the dividend, and its distributable cash flow covers its distribution by a safe 1.7 times. On top of that, Enterprise’s balance sheet is investment-grade rated, so there’s little reason to worry about it needing to cut its distribution. Also notable is the fact that Enterprise is one of the most financially conservative players in its peer group, and has been for years. So what you see today is really what…
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