Published on 13 Apr 2024 on Motley Fool via Yahoo Finance

Before You Buy High-Yield Dividend Stock Enterprise Product Partners, Think About This Top ETF

Enterprise Product Partners (NYSE: EPD) has long been a favorite of income-oriented investors for its steady and consistently growing distribution. The company has been one of the best-run midstream companies for a long time and at the forefront of shareholder friendly moves, such as being one of the first MLPs to eliminate its IDRs (incentive distribution rights). This allowed the company to continue to increase its distributions even during the energy-price plunge of the mid 2010s.

That said, investing in an individual master limited partnerships (MLPs) like Enterprise Product Partners may not be best for everyone. Instead investing in an MLP exchange-traded fund, or ETF, such as Alps ETF Trust-Alerian MLP ETF (NYSEMKT: AMLP) may be the better option. And it come with one other big benefit: no extra paperwork.

Investing in MLPs