Should You Buy High-Yield Enterprise Products Partners While It's Below $36?
Enterprise Products Partners (NYSE: EPD) is trading a little under $32 per share and offering a distribution yield of nearly 6.8%. That's attractive when you consider that the S&P 500 index (SNPINDEX: ^GSPC) only offers 1.3%, and the average energy stock just 3.6%.Does that make Enterprise Products Partners a buy? And why is the $36 price point so important?Before looking at Enterprise's yield and unit price, it is important to understand the business behind both of those first two numbers. Enterprise is a large North American midstream company. That means it owns things like energy pipelines and storage, processing, and transportation assets. These are large and expensive infrastructure assets. The energy sector couldn't operate without them.Continue reading
Enterprise Products Partners (NYSE: EPD) is trading a little under $32 per share and offering a distribution yield of nearly 6.8%. That's attractive when you consider that the S&P 500 index (SNPINDEX: ^GSPC) only offers 1.3%, and the average energy stock just 3.6%.
Does that make Enterprise Products Partners a buy? And why is the $36 price point so important?
Before looking at Enterprise's yield and unit price, it is important to understand the business behind both of those first two numbers. Enterprise is a large North American midstream company. That means it owns things like energy pipelines and storage, processing, and transportation assets. These are large and expensive infrastructure assets. The energy sector couldn't operate without them.
