![\"A](\"https:\/\/www.marketbeat.com\/logos\/articles\/med_20250716134801_build-stability-and-income-with-3-overlooked-divid.png\")
<\/p>\n
Dividend investing<\/a> remains a favored strategy among retail investors aiming for a blend of stability and passive income<\/strong>. A long-term buy-and-hold approach to established dividend payers like The Coca-Cola Co. (NYSE: KO)<\/a> and Johnson & Johnson (NYSE: JNJ)<\/a> rewards those who practice patience and commit to reinvesting their payouts over time.<\/p>\n Typically, investors target dividend yields in the 2-3% range, alongside payout ratios below 80%. These metrics serve as indicators of a company’s capacity to sustain dividend payments over the long haul.<\/p>\n For those willing to adopt a more aggressive stance, companies with higher yields and payout ratios can be appealing. However, it\u2019s crucial to remember that elevated yields do not guarantee long-term sustainability. Investors should keep a close eye on payout ratios to ensure that dividend targets maintain sufficient income to support business growth.<\/p>\n The companies highlighted below offer an attractive mix of operational stability and high dividend yields.<\/p>\n Enterprise Products Partners L.P. (NYSE: EPD)<\/a> is a midstream energy services firm boasting an extensive infrastructure of approximately 50,000 miles of pipeline. Following a share price dip in early April, triggered by tariff announcements from the Trump administration, this presents a unique buying opportunity for what many investors consider a hold-forever name<\/a>.<\/p>\n With nearly three decades of dividend distribution history<\/strong>, Enterprise stands out as a prime dividend leader. Although its payout ratio is somewhat high at 80.2%<\/a>, the firm\u2019s solid track record of consistent payouts and increases should ease investor concerns.<\/p>\n Moreover, the company\u2019s high dividend yield of 6.82% is likely to become even more attractive if the Federal Reserve lowers interest rates. Analysts also foresee capital appreciation, with expectations of earnings growth exceeding 5% in the upcoming year. Currently, nine out of 14 analysts rate EPD shares a Buy<\/strong>, with a consensus price target above $36 per share, indicating a potential rise of 15% or more alongside earnings improvement.<\/p>\n Similar to EPD, shares of logistics giant United Parcel Service (NYSE: UPS)<\/a> have experienced declines in recent months, falling nearly 20% since the start of the year. However, recent improvements in operational efficiency and profit<\/a> suggest that the company\u2019s strategy of prioritizing higher-quality deliveries over sheer volume is paying off.<\/p>\n For passive income seekers, UPS boasts a 16-year history of dividend increases<\/strong> and a high yield of 6.55%<\/a>. While its dividend payout ratio of 95.6% may deter some investors, those willing to take a risk could reap substantial rewards, especially with analysts predicting earnings growth of 10.3% in the coming quarters. Additionally, the company has upside potential of just under 20%, making capital growth another factor to consider.<\/p>\n ONEOK Inc. (NYSE: OKE)<\/a> is another midstream energy services company. While Enterprise\u2019s share price has seen some recovery, ONEOK\u2019s stock has plateaued, resulting in a year-to-date decline of over 21%. However, new construction projects may bolster its infrastructure and improve its market position.<\/p>\n With a 5.1% dividend yield<\/strong> and a payout ratio of 80.5%, ONEOK shares are appealing to dividend investors. The firm has a long-standing history of stable dividend disbursements, supported by consistent cash flow.<\/p>\n Analysts are optimistic about ONEOK, forecasting earnings growth of over 17% in the coming quarters. A price target exceeding $103 per share suggests nearly 29% upside potential, despite only just over half of the 16 analysts rating OKE shares as Buy<\/strong>.<\/p>\n Like the aforementioned companies, ONEOK combines an enticing dividend yield with a potentially high payout ratio and opportunities for share price appreciation.<\/p>\n Before you make your next trade, you’ll want to hear this.<\/p>\n MarketBeat tracks Wall Street’s top-rated research analysts and the stocks they recommend daily.<\/p>\nBargain Price on a Solid Midstream Firm With High Yield and Dividend History<\/h2>\n
Improving Efficiency and Profits May Outweigh Payout Ratio Concerns for UPS<\/h2>\n
Another Midstream Firm With More Upside Potential<\/h2>\n