Earnings season is often a nerve-wracking time for investors. With analysts' strong sentiments driving drastic stock movements, it’s easy to get swept up in the emotional whirlwind of buy and sell decisions. The drama is undeniable—headlines flash, markets react, and fortunes can shift in an instant.
But amid the chaos, there’s an opportunity for stability. Not all companies are caught in the frenzy. Some stand out as pillars of resilience, offering steady growth and reliable returns even in volatile times. In this article, we explore two standout picks—highly diversified businesses with massive tangible asset footprints—that have consistently demonstrated stability through earnings season and beyond. These companies not only weather the storm but also provide growing dividends, delivering the cash flow needed to seize opportunities in the market.
Let’s dive in and uncover these bastions of stability in an otherwise turbulent landscape.
Pick 1: EPD – Yield 6.5%
Enterprise Products Partners (EPD), one of the nation’s largest midstream operators, reported its Q4 and full-year earnings last week. The company continues to do it all – unit repurchases, debt reduction, distribution growth, and capital investments, to support the interests of shareholders while prioritizing operational growth and expansion.
During Q4, EPD made $2 billion in capital investments, including $946 million for growth projects and $949 million for the acquisition of Piñon Midstream. The midstream MLP has ~$7.6 billion of major growth capital projects under construction, expected to go into service over the next three years. About $6 billion of these growth projects will come online in the second half of 2025, supported by long-term contracts, providing visibility to continuing net income and cash flow per unit growth.
During FY 2024, EPD repurchased ~$219 million of its common units on the open market in 2024, bringing total common unit repurchases to ~$1.1 billion under its $2 billion repurchase program. The partnership reported $9.9 billion in EBITDA and $7.8 billion in distributable cash flow, providing a distribution coverage ratio of 1.7 times. EPD recently raised its distribution by 4%, marking 26 years of annual payment increases!
The company ended FY 2024 with a consolidated leverage ratio of 3.1x, among the lowest in the midstream industry. EPD’s weighted average duration of debt was ~18 years and its weighted average cost of debt was 4.7%. About 98% of the partnership’s debt carries fixed interest rates, effectively shielding the company from near-term rate uncertainties. Overall, EPD continues to exhibit stability through all the market noise, making it an ideal investment for our no-drama income needs.
Pick 2: NNN – Yield 5.8%
NNN REIT Inc. operates 3,568 freestanding single-tenant properties with an occupancy of 98.5% at the end of FY 2024. During the fourth quarter, the REIT invested $217 million in acquiring 31 new properties at an initial cap rate of 7.6% with a weighted average lease duration of 20 years, while disposing of $150 million worth of assets at a 7.3% cap rate. Such transactions naturally improve the portfolio Net Operating Income by increasing the yield on the assets.
NNN reported Core FFO and AFFO of $3.32 per share and $3.35 per share, respectively, placing its 2024 dividend payments ($2.29/share) at a 68% AFFO payout ratio. The REIT reported $196 million of free cash flow after the payment of all expenses and dividends, funding 61% of its acquisitions with FCF and proceeds from dispositions.
NNN has issued guidance for FY 2025, and the REIT projects core FFO at a range of $3.33 to $3.38 per share and AFFO guidance with a range of $3.39 to $3.44 per share. Assuming a 3% dividend raise in Q3, the REIT’s annual payout for FY 2025 will be placed comfortably at a 69% payout ratio at the midpoint of the AFFO guidance range. NNN projects $500 - $600 million in acquisitions and $80 to $120 million of dispositions during FY 2025.
During Q4, the REIT also made significant progress on two of its distressed tenants, minimizing portfolio downtime of 35%, and 44% respectively with no tenant improvements. The speedy minimization indicates strong demand for net lease properties and the minimal impact on NNN’s operational results indicates a deeply diversified approach to real estate investing.
NNN proudly boasts 36 years of growing dividends, and we expect the next raise to be announced in Q3.
Conclusion
Earnings season may be fraught with volatility, but as we’ve seen with Enterprise Products Partners (EPD) and National Retail Properties (NNN), stability is still within reach. EPD’s robust energy infrastructure and consistent cash flows make it a reliable player in the midstream sector, while NNN’s diversified retail portfolio and long-term lease agreements provide a fortress of predictability in the REIT space. Both companies exemplify the power of tangible assets and disciplined growth, offering investors not just shelter from market storms, but also the opportunity to thrive.
In a world where emotional decisions often dominate, these two picks remind us that patience, diversification, and a focus on fundamentals can yield steady returns—quarter after quarter. Whether you’re looking to fortify your portfolio or simply weather the earnings season turbulence, EPD and NNN stand out as compelling choices for long-term stability and growth.
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