Last week, I covered Energy Transfer (NYSE: ET), one of the most popular master limited partnerships (MLPs). Because of their high yields and tax efficiency, MLPs are a favorite of investors. SafetyNet Pro currently rates the dividend safety of 10 MLPs. SafetyNet Pro is a groundbreaking tool that predicts dividend cuts with stunning accuracy. With it, you can determine the dividend safety rating of nearly 1,000 stocks. Access to SafetyNet Pro is reserved exclusively for subscribers of Marc's newsletter, The Oxford Income Letter. To learn more about SafetyNet Pro and The Oxford Income Letter, click here now. | |
Of these 10 companies, only two are rated "A" for distribution safety. Today, I will cover the company that I consider to be the safest. Enterprise Products Partners (NYSE: EPD) started in 1968 as a wholesaler of natural gas liquids. Today, it has 50,000 miles of pipelines, 260 million barrels of storage capacity and 22 natural gas processing plants. Enterprise Products Partners' cash available for distribution (CAD), a measure of cash flow for MLPs, has risen each year for the past three years. This year, CAD is forecast to decline. However, even with the projected lower CAD, Enterprise can still easily cover the distribution (MLPs pay distributions, not dividends). If Enterprise Products Partners hits the $6 billion in CAD that Wall Street expects, it will likely pay investors about 65% of that total in distributions. |
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