Enterprise Products Partners and Verizon are spotlighted as high-yield, dividend-growth plays underpinned by durable cash flow and strong balance sheets: EPD has raised distributions for 27 consecutive years, yields roughly 6.9%, generated $1.8bn of distributable cash flow in Q3 with 1.5x coverage, retained $635m, repurchased $80m, carries ~3.3x leverage with A-/A3 ratings, is investing ~$4.5bn this year and $2.2–2.5bn in 2026 and has expanded buyback authorization to $5bn. Verizon extended its dividend-growth streak to 19 years, yields about 6.7%, produced $28bn of operating cash flow through nine months (covering $12.3bn capex and $8.6bn of dividends with ~$7.2bn excess), lowered leverage to ~2.2x, is buying Frontier for ~$20bn in cash to bulk up fiber and is pursuing cost cuts and bundling to boost 2026 free cash flow. The combination of sustainable cash generation, capital discipline and strategic investment in growth and buybacks supports further distribution increases and makes both names compelling for yield-focused portfolios seeking balance-sheet resilience.
The article highlights Enterprise Products Partners (EPD) and Verizon (VZ) as high-yield, dividend-growth investments supported by durable cash flow and strong credit metrics. EPD has raised its payout for 27 consecutive years, yields about 6.9%, produced $1.8 billion of distributable cash flow in Q3 with 1.5x coverage, retained $635 million, repurchased $80 million of common units, carries ~3.3x leverage and holds A-/A3 bond ratings while issuing a Schedule K-1. EPD is concluding a multi-year expansion that began in 2022, guiding ~$4.5 billion of capital spending this year and $2.2–2.5 billion planned for 2026; management expects rising free cash flow and expanded buyback capacity (authorization increased from $2 billion to $5 billion) to support future distribution growth. Verizon extended dividend growth to 19 years with a ~2% raise and a 6.7% yield, generating $28 billion of operating cash flow through nine months that covered $12.3 billion of capex and $8.6 billion of dividends with ~$7.2 billion excess and reduced leverage to ~2.2x. Verizon’s balance-sheet strength underpins a $20 billion all-cash Frontier acquisition and an efficiency-driven transformation aimed at boosting 2026 free cash flow; both companies' profiles imply continued capital returns, but investors should watch execution of capex projects, buybacks, and the post-acquisition cash trajectory.
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strongly positive
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