EPD - Forget Icahn Enterprises: 2 Energy Stocks to Buy Instead
2024-07-18 03:55:00 ET
Icahn Enterprises (NASDAQ: IEP) is a unique conglomerate, but it gets categorized in the energy sector because over 75% of its revenue is derived from its controlling stake in CVR Energy . Add in its dividend, which at current share prices yields a massive 23%, and it's easy to see why income investors looking for exposure to the energy sector might be interested in Icahn Enterprises.
However, either Chevron (NYSE: CVX) or Enterprise Products Partners (NYSE: EPD) would be a better choice to buy. Here's why.
While it is true that Icahn Enterprises derives a huge percentage of its revenue from the energy sector, it is not an energy company. It is the investment vehicle of famous Wall Street investor Carl Icahn. The company also owns businesses that operate in the real estate, auto, healthcare, home furnishing, and packaging sectors. And, on top of that, it owns a small portfolio of stocks.
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Forget Icahn Enterprises: 2 Energy Stocks to Buy Instead