Why This MLP Has a Great Dividend Yield

Updated

Many investors see a great dividend, and don't ask questions. But the smart investor knows that for a dividend to be sustainable, it has to be coming from the right places. In this video, Motley Fool energy analyst Joel South tells us what to look for at Enterprise Products Partners (NYS: EPD) to understand the company's continued sustainability and growth in its distributions to shareholders. He highlights the company's focus on both growth and stable income projects, not only to continue distributions to shareholders at this level, but to increase them.

The growing production of natural gas from hydraulic fracturing and horizontal drilling is flooding the North American market and resulting in record-low prices for natural gas. Enterprise Products Partners, with its superior integrated asset base, can profit from the massive bottlenecks in takeaway capacity by taking on large-scale projects. To find out if Enterprise Products Partners is a buy or a sell today, click here now to check out The Motley Fool's brand new premium research report on the company.

The article Why This MLP Has a Great Dividend Yield originally appeared on Fool.com.

Joel South has no positions in the stocks mentioned above. Taylor Muckerman has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Enterprise Products Partners. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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