Better Buy: Enterprise Products Partners vs. Kinder Morgan

If you love dividends, you've probably found yourself looking into the midstream sector. It is home to some of the highest yields in the market, but a big yield alone isn't enough of a reason to buy a business. Investors should focus on industry giants, with size presumably coming as a byproduct of success. In the midstream space, two of the most prominent players are Enterprise Products Partners (NYSE: EPD) and Kinder Morgan (NYSE: KMI). Here's how they compare on six points.

If you are looking at Enterprise and Kinder Morgan, you probably care a lot about yield. In this matchup, Enterprise offers slightly more, with a distribution yield of 7.4%. Kinder Morgan's dividend yield is a touch over 6%.

Obviously, Enterprise wins if you are looking to maximize the income you earn today. But yield alone doesn't tell the full story; you need to dig deeper.

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Source Fool.com