Is Energy Transfer the All-American Dividend Stock for You? Consider This High-Yielder Instead.
Dividend investors are always trying to maximize yield, but that requires extra consideration on the risk front. A high yield that isn't backed by a reliable company could leave you in the lurch and, likely, at the worst possible time. This is why investors looking at Energy Transfer (NYSE: ET) and its lofty 7.5% distribution yield will probably be better off taking a little less yield and choosing Enterprise Products Partners (NYSE: EPD) instead. Here's why.Energy Transfer and Enterprise are two of the largest midstream companies in North America. They both hail from the United States and generate most of their business from the country.The truth is, owning energy infrastructure assets like pipelines essentially forces these two businesses to be American at heart. After all, you can't move oil around the United States on a pipeline that gets built in Europe. That pipeline has to get built on U.S. soil.Continue reading
Dividend investors are always trying to maximize yield, but that requires extra consideration on the risk front. A high yield that isn't backed by a reliable company could leave you in the lurch and, likely, at the worst possible time. This is why investors looking at Energy Transfer (NYSE: ET) and its lofty 7.5% distribution yield will probably be better off taking a little less yield and choosing Enterprise Products Partners (NYSE: EPD) instead. Here's why.
Energy Transfer and Enterprise are two of the largest midstream companies in North America. They both hail from the United States and generate most of their business from the country.
The truth is, owning energy infrastructure assets like pipelines essentially forces these two businesses to be American at heart. After all, you can't move oil around the United States on a pipeline that gets built in Europe. That pipeline has to get built on U.S. soil.
