Investing in the stock market is a great way to turn idle cash into passive income. Using that money to buy dividend stocks enables you to collect recurring dividend income. You can use that money to help cover your bills or reinvest it into generating more income. For example, investing $1,000 across three high-quality dividend stocks with higher dividend yields could turn it into more than $50 of passive income each year: | Dividend Stock | Investment | Current Yield | Annual Dividend Income | | --- | --- ...

Enterprise Products Partners (EPD -1.22%) has a distribution yield of around 6.8% today. Energy Transfer (ET -3.08%) has a higher yield at 7.5%, and USA Compression Partners (USAC -2.48%) is even higher at 8.3%.But if you are looking for a high-yield midstream stock, you need to think about more than just the yield. Here's why Enterprise Products Partners could be the best high-yield midstream option despite a lower yield.What does Enterprise Products Partners do?Like most midstream players, Enterprise owns ...

Group 1: Company Overview - Enbridge operates in the midstream sector of the energy industry, focusing on energy infrastructure like pipelines, which transport oil and natural gas globally [2] - Approximately 75% of Enbridge's business is derived from midstream assets, while the remaining portion comes from regulated natural gas utilities and renewable power assets, providing reliable cash flows [4] Group 2: Dividend Sustainability - Enbridge has a current dividend yield of 5.8%, significantly higher than the average energy company yield of 3.1%, raising questions about its sustainability [1] - The company has increased its dividend annually for 30 consecutive years, indicating a strong commitment to maintaining dividend payments [1] - Management anticipates continued dividend growth due to the company's capital investment plans, suggesting that the dividend is sustainable [9] Group 3: Financial Health - Enbridge's recent acquisition of three natural gas utilities for approximately $14 billion increased its debt-to-equity ratio from 1.2 to around 1.5 by the end of 2025 [5] - Despite the increased leverage, Enbridge's debt-to-EBITDA ratio is lower than at the start of 2023 and is comparable to its pipeline peers, indicating reasonable leverage [6] - The company's balance sheet is rated investment-grade, suggesting that it is not viewed as a material financial risk by rating agencies [7] Group 4: Market and Geopolitical Factors - Geopolitical tensions and tariffs could impact Enbridge, but the company has historically maintained its dividend during similar challenges from 2016 to 2020 [8] - The importance of oil and natural gas in the global economy supports the notion that Enbridge can continue to operate effectively despite geopolitical uncertainties [8]