3 Dependable High-Yield Dividend Stocks to Buy Hand Over Fist Right

High-yield dividend stocks don’t always come with higher risk profiles. Many companies pay dependable dividends that yield well above average these days. 

Three dividend stocks that currently stand out to our contributors for their combination of dependability and yield are Enterprise Products Partners (NYSE:EPD), Consolidated Edison (NYSE:ED), and TotalEnergies (NYSE:TTE). Here’s why they think investors should scoop up shares right now. 

Image source: Getty Images.

Reuben Gregg Brewer (Enterprise Products Partners): I could highlight Enterprise Products Partners’ 23 consecutive years of distribution growth and easily proclaim that it is dependable. However, that doesn’t do justice to the master limited partnership (MLP) and its generous 7.8% distribution yield. For example, in a recent investor presentation about how management intends to allocate capital, “support and grow cash distributions to partners” was No. 1 on the list.

EPD Financial Debt to EBITDA (TTM) data by YCharts

How does Enterprise do that? Well, one example is that its financial debt-to-earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio of 3.9 times is well below the levels of its closest peers. In hard times, having extra room on the balance sheet provides valuable flexibility. Then there’s the fact that Enterprise’s third-quarter 2021 distribution was covered by its distributable cash flow by 1.7 times. That gives the giant midstream MLP ample room for adversity before the distribution would be at risk of a cut. These are the types of conservative decisions you would expect from an income stock that wants to pay a reliable distribution. 

And while some might worry about the future of oil and natural gas midstream assets, given investors’ focus on environmental, social, and governance issues (ESG) today, don’t get too concerned. The energy transition that’s taking shape is likely to take decades. In fact, Enterprise estimates that population growth and rising living standards will increase demand for oil out to 2040 even as the fuel’s share of the energy pie shrinks. Natural gas, meanwhile, will see its share increase as it helps displace dirtier coal. In other words, it looks like Enterprise has years of big and reliable distribution payments ahead of it.

The definition of dependability

Matt DiLallo (Consolidated Edison): Consolidated Edison is a company dividend investors can count on to deliver a steadily growing income stream. It has increased its payout for 47 consecutive years, the longest streak for a utility in the S&P 500. That makes it a Dividend Aristocrat. It also puts it only three years away from the even more elite list of a Dividend King. 

Aside from that dependability, two factors make Consolidated Edison stand out as an excellent buy for income-seekers right now. First, it trades at an attractive valuation. Shares are down about 6% over the past year, pushing its dividend…