Is Enterprise Products Partners Stock a Buy?

North American midstream energy bellwether Enterprise Products Partners (NYSE: EPD) is currently offering investors a fat 9.7% yield. That's a number that should stop investors in their tracks, given that the distribution has been increased annually for over two decades. But the real question here is whether this is a huge opportunity for long-term investors or a sign that Enterprise is in trouble. Here are four key reasons why it's more likely a sign of a buying opportunity.

The energy sector is being hit very hard today because of a COVID-19-driven supply and demand imbalance. Everything related to oil and natural gas has been under intense pressure, including Enterprise. However, the master limited partnership's first-quarter distribution coverage was a robust 1.6 times, giving it plenty of room to deal with the adversity while continuing to support its generous distribution.

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Source Fool.com