PXD - Here's Why Enterprise Products Partners Is a No-Brainer Dividend Stock
2023-07-25 07:13:00 ET
For many investors, the first thing that will attract them to Enterprise Products Partners (NYSE: EPD) is the generous 7.4% yield. Given that the S&P 500 index is only yielding around 1.5% today, that is, indeed, a very attractive number. But there's so much more to like about Enterprise. Here are a few graphs and tables to highlight the midstream master limited partnership's (MLP's) best selling points.
A giant yield is only attractive if it's sustainable over the long term. For example, Pioneer Natural Resources (NYSE: PXD) , another company that operates in the energy sector , has an even higher yield of 11%. But Pioneer has a variable dividend policy, so the yield will rise and fall along with the financial results of the energy driller. In other words, volatile commodity prices will play a dominant role in the dividends that investors collect.
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Here's Why Enterprise Products Partners Is a No-Brainer Dividend Stock