Better Dividend Buy: Enterprise Products Partners L.P. vs. Kinder Morgan, Inc.

If you are looking for dividend income, you need to consider a number of factors beyond just yield. Dividends don't live in a financial bubble walled off from other factors that impact companies; they are just one piece of a larger puzzle. Which goes a long way toward explaining why a higher yield doesn't necessarily make Enterprise Products Partners L.P. (NYSE: EPD) a better dividend buy than Kinder Morgan, Inc. (NYSE: KMI).

To be fair, there are a number of things to like about Kinder Morgan. For example, it is one of the largest midstream companies in the United States with a diversified portfolio of largely fee-based assets. It would be difficult, if not impossible, to replace the business Kinder has created. And the company is set to continue growing, with a backlog of capital projects that sits at around $12 billion.

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Source: Fool.com