Enterprise Products Partners (EPD), a master limited partnership that owns oil and gas pipelines, offers a 6.1% forward dividend yield and has raised its distribution for 28 consecutive years. It currently pays $0.56 per unit quarterly, or about $2.24 annually, so roughly 893 units are needed to earn $2,000 a year; at $36.69 per unit, that position would be worth $32,764. The distribution has grown about 4% a year over five years, 3.6% over 10 years and 4.8% over 20 years. The MLP pays out less than 60% of its distributable cash flow (DCF), with a 1.7x coverage ratio, while competing pipeline stocks pay 65% and sometimes more than 70%, and its DCF has nearly quadrupled over 20 years, through the financial crisis, the oil price collapse and COVID-19.
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