Enterprise Products Partners Offers a 7% Dividend Yield. Is This Stock Worth a Look?
Those looking for quality high-yielding stocks should consider Enterprise Products Partners (NYSE: EPD), an under-the-radar energy stock with a generous dividend yield currently above 7% that has raised its annual dividend for 25 consecutive years.
Price volatility in natural gas, oil, and fossil fuels has caused some investors to move their money to safer instruments that can offer better near-term stability. Meanwhile, the energy sector has faced a series of challenges, and years of economic turmoil, stronger demand, and higher wholesale prices have meant that many energy retailers now have to sell at inelastic prices.
But this isn't the case for Enterprise Products Partners. The midstream holding company operates as a go-between in the natural gas liquids, crude oil, and petrochemical pipelines and services segments. Instead of being directly involved with extraction and production, Enterprise Products Partners is a storage, processing, and transportation service provider. Because the company is not directly involved with direct-to-customer supply chain operations, it's protected from exterior challenges energy suppliers typically experience.
Source Fool.com
