Better Stock Buy: Enterprise Products Partners vs. Kinder Morgan
The midstream sector of the energy industry has fallen out of favor on Wall Street, leaving both Enterprise Products Partners (NYSE: EPD) and Kinder Morgan (NYSE: KMI) with attractive yields. But as investors consider this pair of midstream giants, there's a backstory that has to be looked at.
If you are seeking to create a safe passive income stream, you'll probably be happier with the higher yielding of these two investments.
Both Enterprise and Kinder Morgan hail from the midstream sector. This means that they both own assets, like pipelines, that help to move oil, natural gas, and the products into which they get turned around the world. The key is that most of the revenue generated here is from fees for the use of these assets, so energy prices aren't the driving factor for these businesses. Demand, which tends to remain robust even when energy prices are low, is far more important.
Source Fool.com
