Want a Stable Income Stream? This Ultra-High-Yielding Dividend Is Very Safe and Secure.

Core Viewpoint - High dividend yields can indicate potential risks, but Enterprise Products Partners (EPD) has demonstrated a stable and sustainable high yield of 6.5% over the years, making it a safe investment for passive income seekers [2][5]. Company Performance - Enterprise Products Partners generated a record $7.8 billion in distributable cash flow last year, covering its cash distribution to investors by a ratio of 1.7 times, allowing the company to retain$3.2 billion for expansion and maintain a strong balance sheet [4]. - The company ended the year with a leverage ratio of 3.1 times, within its target range of 2.75 to 3.25, supporting its investment-grade balance sheet with the highest credit rating in the midstream sector at A-/A3 [5]. Growth Potential - The company increased its distribution by 5% last year, marking 26 consecutive years of growth, and has already raised its payout by 3.9% this year [6]. - Enterprise Products Partners plans to invest $4 billion to$4.5 billion in growth capital projects this year, following $3.9 billion spent last year, which is expected to fuel significant growth in cash flow and distribution [7]. - Major organic growth projects worth$6 billion are anticipated to be completed in 2025, including new natural gas processing plants and expansions of existing facilities, which will further enhance cash flow [7]. Future Outlook - The company has additional projects scheduled to enter service in 2026, with capital spending projected at $2 billion to$2.5 billion next year to complete these projects [8]. - With an increase in cash flow expected from new projects and a decline in capital spending in 2026, Enterprise Products Partners is poised to generate significantly more excess free cash flow, allowing for continued distribution increases and potential debt repayment or unit repurchases [9]. Investment Appeal - The company is characterized as a cash-producing machine, with a portion of its cash flow allocated to cover high-yield distributions while retaining sufficient funds for expansion projects, making it an attractive option for investors seeking secure income streams [11].