The Best Energy Dividend Stock for a Lifetime of Passive Income

Creating reliable passive income streams is a great way to help fund your retirement, and, before that point, you can reinvest the cash to grow your wealth faster. In other words, everyone should like passive-income investments like Enterprise Products Partners (NYSE: EPD). Here's why this key energy player is so exciting today, even though oil and natural gas prices are bouncing around in volatile fashion... just like they always have.

Oil and natural gas are commodities that are prone to massive and often swift price swings. It was just two years ago when the COVID-19 pandemic pushed the prices of these vital fuels to historic lows. Yet today, they are up so much that energy companies are reaping huge profits. While some dividend stocks have proven adept at navigating these cyclical swings while continuing to pay a reliable and growing dividend, it can be hard for investors to stomach the industry's inherent volatility. Note the recent oil price gyrations, with the black gold recently falling around 10% in a single day.

There are, however, a wide range of businesses that fall under the broad energy nameplate. While most are inherently tied to the prices of oil and natural gas, the midstream sector is largely driven by fees. Indeed, Enterprise Products Partners owns the pipelines, refining, storage, and transportation assets that help to move oil and natural gas from where they are drilled to where they get consumed. Roughly 80% of its gross operating margin is derived from fees paid to use its system. That makes the master limited partnership (MLP) a very reliable cash-flow generator.

Source Fool.com