Enterprise Products Partners Earns Great Returns Even When Oil Plunges
If you are looking at Enterprise Products Partners (NYSE: EPD), you have probably been attracted by its big 7.5% distribution yield. That's perfectly fine, but yield alone doesn't tell you enough about an investment. You need to dig a little deeper.
Here's a closer look at Enterprise and why its big yield isn't a fluke or a sign of a pending distribution cut.
Operating in the midstream segment of the broader energy industry, Enterprise owns the vital energy infrastructure assets (like pipelines) that help to move oil and natural gas from place to place. These assets are very costly to build but tend to produce reliable cash flows once they are brought online. There are two reasons for that.
Source Fool.com
