Core Viewpoint - Enterprise Products Partners L.P. (NYSE:EPD) is recognized as a strong investment option for passive income, particularly for 2025, due to its stable cash flow and consistent dividend payments [2][4]. Group 1: Company Overview - Enterprise Products Partners L.P. is a midstream company based in Houston, Texas, focusing on natural gas and crude oil pipelines [2]. - As a master limited partnership (MLP), it provides a distribution that is well protected, with a coverage ratio of 1.7 times by distributable cash flow [2]. Group 2: Financial Stability - The company holds an investment-grade credit rating, which contributes to its financial stability [3]. - Enterprise Products Partners can rely on its strong balance sheet to manage short-term challenges, although such scenarios are unlikely due to its fee-based business model [3]. - The company's performance is more dependent on energy demand rather than fluctuating oil and gas prices, leading to resilient cash flows even during periods of weak commodity prices [3]. Group 3: Dividend Performance - Enterprise Products Partners offers a quarterly dividend of $0.545 per share, resulting in a dividend yield of 6.94% as of September 22 [4]. - The company has a strong track record of increasing its payouts for 27 consecutive years, making it one of the best stocks for passive income [4].
Enterprise Products Partners (EPD): A Strong Pick for Passive Income Portfolios in 2025