Apr. 2 at 11:54 AM
$EPD With this continuously revenue-earning operation, EPD structured as a master limited partnership (MLP) -- runs a comfortably profitable business. In its most recently reported quarter, the company took in nearly
$13.8 billion in revenue, filtering down into net income that wasn't far below
$1.7 billion. With a double-digit profit margin, Enterprise generates sufficient cash to fund a high-yield dividend. These days, the company pays a quarterly distribution of
$0.55 per unit, shaking out to a yield of 5.6%.With its vertical integration and relatively broad customer base comprising upstream oil companies, refiners, and chemical producers, among others, Enterprise is also well hedged against slowdowns in those individual client segments. Meanwhile, its extensive fee structure generates revenue from a wide range of services. That, to me, makes for a business with a very solid foundation that can sustain its high-yield payout, and a fine stock to own.
