Want $1,000 in Annual Passive Income? Here's How Much to Invest in This High-Yield Energy Stock

Core Viewpoint - Enterprise Products Partners (EPD) is a strong income-generating investment with a current yield of 6.3%, significantly higher than the S&P 500's yield of 1.1% [1] Financial Performance - The company has increased its distribution for 27 consecutive years, indicating a strong commitment to returning value to investors [1] - The most recent quarterly distribution payment was set at $0.55 per unit, reflecting a 2.8% increase year-over-year [4] - In 2025, Enterprise Products Partners generated $7.9 billion in operational distributable cash flow, covering its distribution by 1.7 times and allowing for $3.2 billion in retained cash for reinvestment [7] Investment Requirements - To generate $1,000 in annual passive income, an investment of approximately $15,900 is needed at the current unit price of around $35, compared to over $87,700 required for an S&P 500 index fund [5] Growth Initiatives - The company invested $5 billion in expansion initiatives last year, including $4.4 billion on growth capital projects and $632 million on acquisitions, supported by a strong balance sheet [8] - Enterprise Products Partners plans to invest between $2.5 billion and $2.9 billion in growth capital projects this year and between $2 billion and $2.5 billion in 2027, which is expected to enhance free cash flow [9] Financial Stability - The company maintains a low leverage ratio of 3.3 times, contributing to its top-tier credit rating of A-, making it the only pipeline company with such a rating [8] - The strong financial profile allows the company to continue increasing its distribution and repurchasing common units, further strengthening its balance sheet [10]