2 No-Brainer Stocks to Buy With $200 Right Now
You can buy a share of Enbridge (NYSE: ENB) for around $37 today. And a unit of Enterprise Products Partners (NYSE: EPD) costs roughly $26. That means just $200 could get you started in building a long-term position in both of these high-yield midstream players. Here's a look at their businesses and why the high yields are so important.
Enbridge and Enterprise operate in the energy sector in what is known as the midstream. The upstream in the energy sector encompasses oil and natural gas production. The downstream includes companies that process these commodities in refining and chemical plants. The midstream connects the two ends with pipelines, storage, and transportation assets, among other things.
The upstream and the downstream tend to be pretty volatile, with commodity prices having a big impact on financial results. The midstream is a bit different, with Enbridge and Enterprise largely charging fees for the use of their infrastructure assets. That makes them highly reliable businesses with generally stable cash flows.
Source Fool.com
