Want $1,000 in Annual Passive Income? Here's How Much to Invest in This High-Yield Energy Stock

Enterprise Products Partners (NYSE: EPD) is an income juggernaut. The maestro constricted partnership's (MLP) existent output of 6.3% is respective times higher than the S&P 500's 1.1% yield. The vigor midstream institution has accrued its payout for 27 consecutive years, a inclination that should continue.

Here's a look astatine however overmuch wealth you'd request to put successful the high-yielding MLP (which sends a Schedule K-1 Federal taxation signifier each year) to make $1,000 of yearly passive income.

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Enterprise Products Partners declared its astir caller quarterly organisation outgo successful January. The MLP acceptable the complaint astatine $0.55 per portion ($2.20 annualized). That was a 2.8% summation compared to the prior-year period.

At its existent rate, you'd request to ain 454.5 units of the MLP to make $1,000 successful passive income each year. That would outgo astir $15,900 astatine the company's caller portion terms of astir $35. While that's a chunk of change, it's a batch little wealth than you'd request to put successful a lower-yielding plus to make the aforesaid magnitude of passive income. For example, you'd request to put implicit $87,700 into an S&P 500 scale money to make $1,000 successful yearly dividend income astatine its existent yield.

While galore high-yielding dividend stocks person higher hazard profiles, that's not the lawsuit with Enterprise Products Partners. The MLP generated $7.9 cardinal of operational distributable currency travel successful 2025. That was capable to screen its high-yielding organisation by a comfy 1.7 times, enabling Enterprise to clasp $3.2 cardinal successful currency to reinvest successful the partnership.

The institution spent a full of $5 cardinal connected enlargement initiatives past year, including $4.4 cardinal connected maturation superior projects and $632 cardinal connected acquisitions. It funded the quality with its fortress equilibrium sheet. Enterprise Products Partners ended the twelvemonth with a debased 3.3 times leverage ratio, backing its top-tier recognition standing (it's the lone pipeline company with an A- recognition rating).

Enterprise Products Partners expects to put $2.5 cardinal to $2.9 cardinal successful maturation superior projects this twelvemonth and betwixt $2 cardinal and $2.5 cardinal successful 2027. As a result, its escaped currency travel volition turn owed to declining superior spending and incremental currency travel arsenic those projects participate commercialized service. That volition alteration the MLP to proceed expanding its distribution, repurchase further common units, and further fortify its already elite equilibrium sheet.