Is Ultra-High-Yield Enterprise Products Partners Your Ticket to Becoming a Millionaire?

• Enterprise Products Partners is simply a North American midstream giant.

• The maestro constricted concern has accrued its organisation annually for 27 consecutive years.

• The lofty 6.8% output is apt to relationship for a important information of an investor's instrumentality implicit time.

• 10 stocks we similar amended than Enterprise Products Partners ›

There are respective qualities to similar astir Enterprise Products Partners (NYSE: EPD), starting with its sizable 6.8% yield. To enactment that into perspective, stocks successful the S&P 500 (SNPINDEX: ^GSPC) presently make an mean output of conscionable 1.1%. Does that lofty output crook Enterprise into a millionaire-making investment? It's a spot complex.

Enterprise operates successful the midstream conception of the broader vigor sector. It is the astir reliable conception of the industry, helping to transport oil, earthy gas, and the products derived from them astir the world. The terms of the commodities flowing done Enterprise's strategy is little important than the measurement it is moving due to the fact that it charges fees for the usage of its vigor infrastructure assets.

While commodity prices whitethorn fluctuate wildly, request for vigor tends to stay reasonably accordant owed to its value successful the planetary economy. As such, Enterprise generates precise reliable currency flows to enactment its precise ample distribution. In fact, implicit the trailing 12 months, the maestro constricted partnership's (MLP) distributable currency travel covered the organisation by 1.7 times. That leaves a batch of country for adversity earlier the organisation would beryllium astatine risk.

As an further safeguard, Enterprise has an investment-grade-rated equilibrium sheet. So, if determination were a short-term situation to overcome, it could thin connected its equilibrium expanse to muddle done without resorting to a organisation cut. The operation of beardown organisation sum and a robust fiscal presumption has enabled Enterprise to grow its organisation for 27 years. That clip span includes 2 notable downturns successful the vigor sector, the Great Recession, and the COVID-19 pandemic.

If you are a dividend capitalist looking for a reliable high-yield investment, Enterprise Products Partners volition beryllium close up your alley. But volition it crook you into a millionaire? That's a tougher barroom to wide than you whitethorn think.

Since Enterprise's archetypal nationalist offering (IPO) successful 1998, its full instrumentality is simply a whopping 3,470%. That compares to a astir 890% full instrumentality for the S&P 500 index. More output and much return, motion maine up!