This High-Yield Dividend Stock Is a No-Brainer
Most dividend investors will stop and take notice of Enterprise Product Partners' (NYSE: EPD) hefty 7.9% distribution yield. That's high on an absolute basis and a relative one, compared with the miserly 1.6% yield you'd get from an S&P 500 index fund today. The best part, however, is that this energy stock allows investors to sidestep the energy price volatility inherent in the sector it serves. Here's why it's a no-brainer for passive income investors.
Enterprise is a midstream master limited partnership (MLP). This is a business structure designed to pass income on to investors via large distributions. There are some tax considerations here, but if you are trying to create a passive income stream to supplement your Social Security payments, it is a name you'll want to look at. The key is that it doesn't produce oil, it simply helps to move it.
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Source Fool.com
