PXD - 1 Ultra-High-Yield Energy Stock to Buy Hand Over Fist and 1 to Avoid
2024-02-21 10:16:00 ET
Looking only at yield stats can quickly lead you astray as an investor. But Enterprise Products Partners ' (NYSE: EPD) 7.3% distribution yield will likely be a much better option for most investors when compared to Pioneer Natural Resources (NYSE: PXD) and its 6% yield. The important thing is that the yield isn't the reason why.
There's nothing magical about Enterprise Products Partners. It's a very (very!) boring business.
The master limited partnership (MLP) owns midstream assets in the energy sector, like pipelines, storage, processing, and transportation infrastructure. These are large and expensive facilities that are vital to the global flow of energy. It would be difficult, if not impossible, to replicate or replace the assets that Enterprise owns in North America.
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1 Ultra-High-Yield Energy Stock to Buy Hand Over Fist and 1 to Avoid