Enterprise and Bristol Myers Squibb outperform with high dividends in shifting markets
Two major US companies have released updates on their financial strategies and performance. Enterprise Products Partners, a midstream energy firm, announced plans for significant capital spending in 2025. Meanwhile, pharmaceutical giant Bristol Myers Squibb reported mixed revenue trends in its latest quarterly results.
Both companies also stand out for their strong dividend yields, outperforming broader market averages.
Enterprise Products Partners (EPD) revealed its 2025 capital expenditure budget will range between $2.5 billion and $2.9 billion. The company, which specialises in energy infrastructure, has maintained a profit margin above 10% and currently offers a dividend yield of nearly 5.9%. Over the past five years, its average yield of 7-8% has consistently surpassed the S&P 500's average of 1.3-1.6%.
The midstream energy sector's stability comes from fee-based contracts and steady cash flow growth. Unlike many S&P 500 firms, EPD prioritises dividends over share buybacks, supported by acquisitions and organic projects. This approach has helped it sustain higher payouts even as broader market yields remained low due to tech sector dominance and low-interest environments.
In contrast, Bristol Myers Squibb (BMY) reported a 16% year-over-year revenue increase in its growth portfolio for Q4 2025. However, its legacy portfolio saw a 15% decline. The pharmaceutical company is undergoing a transformation, reflected in its forward P/E ratio of under 10 and a dividend yield of 4.2%.
The S&P 500's current average forward P/E ratio sits at 21.5, well above its 10-year average of 17.6. This highlights how both EPD and BMY remain attractive for income-focused investors amid broader market valuations.
Enterprise Products Partners will invest billions in 2025 while maintaining strong dividends. Bristol Myers Squibb's revenue shift and low P/E ratio signal ongoing changes in its business model. Both firms continue to offer yields above market averages, appealing to investors seeking steady returns.
