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.

Image source: Getty Images.

Continue reading

Source Fool.com