Seeking Stability Amid the Market Storm? Consider Buying This Resilient Company to Help Protect Your Portfolio From Plummeting.

Core Viewpoint - The stock market has experienced significant volatility, with the S&P 500 down nearly 13% and the Nasdaq down almost 17%, primarily due to recession concerns driven by tariffs. Amid this environment, investing in resilient companies like Enterprise Products Partners (EPD) can help protect portfolios during market downturns [1][2]. Group 1: Recession Resistance - Enterprise Products Partners is one of the largest energy midstream companies in the U.S., operating critical infrastructure for energy commodities, which tends to have stable demand even during economic downturns [3]. - The company has a demand-based business model, with most assets under long-term, fixed-rate contracts or government-regulated rate structures, ensuring consistent cash flows that are resilient during recessions [4]. Group 2: Inflation Protection - Concerns about stagflation due to tariffs are mitigated by Enterprise Products Partners' business model, as approximately 90% of its long-term contracts include escalation provisions that protect cash flow from inflation [5]. Group 3: Financial Profile - Enterprise Products Partners has a strong financial profile, being the only midstream energy company with an A-rated credit, allowing it to borrow at lower costs and better terms compared to competitors [7]. - The company maintains a low leverage ratio of 3.1, providing financial flexibility to capitalize on opportunities during downturns [8]. Group 4: Cash Distributions - The company generates resilient, inflation-protected cash flows, enabling it to offer a distribution yield of 7.2%, significantly higher than the S&P 500's yield of less than 1.5% [9]. - Enterprise Products Partners has raised its distribution payment for 26 consecutive years, demonstrating the durability of its business model through various economic cycles [10]. - The company has $7.6 billion in major capital projects under construction, with $6 billion expected to enter commercial service this year, which will support future distribution growth [11].