Prediction: Buying Enterprise Products Partners Today Could Set You Up for Life

Buying stock in midstream energy giant Enterprise Products Partners (NYSE: EPD) could set you up for life. Now, that doesn't mean the stock is going to skyrocket and make you a millionaire overnight on a modest investment. Instead, what buying Enterprise's stock will give you is a lifetime of solid and growing passive income.Enterprise currently sports an attractive forward yield of 6.9%. But the beauty of Enterprise is that the pipeline management company has also increased its distribution in each of the past 26 years, both in good and bad energy markets. Last quarter, the company increased its quarterly payout by 3.9% year over year to $0.535 per unit. If Enterprise were to increase its distribution by a similar amount moving forward, its distribution would approximately double over the next 20 years. With a payout of nearly $4.50 per share by that time, your "personal yield" on an investment in Enterprise at that time would be a little over 13.6% based on the stock's current levels today. While "personal yield" is not a standard financial term, it is simply the yield you are getting based on your personal cost basis (the stock's current dividend/your cost basis).Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool