Forget Enterprise Products Partners, Enbridge Is a Better Midstream Dividend Stock
Enbridge (NYSE: ENB) and Enterprise Products Partners (NYSE: EPD) own massive collections of midstream energy assets. They both have generous yields, a hallmark of the sector in which they operate. In a head-to-head comparison, however, one stands just a little bit ahead, and that will likely make it the standout choice for most investors. Here are some things to consider when comparing this pair.
Enterprise Products Partners is a master limited partnership (MLP). This is a very specific business structure that functions as a pass-through entity, treating unitholders as part owners of the business. That allows investors to benefit directly from things like depreciation, but it creates complications at tax time as unitholders have to deal with the K-1 tax form. And MLPs don't fit easily within tax-advantaged retirement accounts because of the nature of the income that they create. It's advisable to consult a tax accountant if you own MLPs.
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Source Fool.com
