Got $1,000? Here's a Safe Way to Turn It Into About $75 of Passive Income in 2024.
Enterprise Products Partners (NYSE: EPD) built its business to produce steady income. The midstream giant owns a diversified portfolio of pipelines, processing plants, petrochemical complexes, storage terminals, and export facilities crucial to supporting the energy industry. Those assets generate very predictable revenue backed primarily by long-term contracts and government-regulated rate structures.
The master limited partnership (MLP) distributes a little more than half of its stable cash flow to investors each year. That payout currently yields 7.4%. At that rate, every $1,000 invested in Enterprise Products Partners would produce nearly $75 of annual income. Here's why the MLP is such a great option for income-seeking investors.
Enterprise Products Partners has generated $8 billion of cash flow from operations over the past 12 months. It has distributed 53% of this cash to investors (about $4.3 billion) while using another 3% to repurchase some of its common units. It retained the remaining money to fund capital projects (33% for growth and 5% for maintenance) and strengthen its already elite balance sheet.
Source Fool.com
