Better Dividend Stock: Enterprise Products Partners vs. Energy Transfer

When you look at a high-yield investment opportunity you need to look at the business behind the yield. After all, a yield is only as reliable as the business that supports it. If you have honed in on Energy Transfer (NYSE: ET) and its 6.7% distribution yield, you might want to instead consider Enterprise Products Partners (NYSE: EPD) and its slightly lower 6.4% yield. Here's why.There are two specific examples that should lead income investors to avoid Energy Transfer. The first happened in 2020, when the energy sector was in a deep downturn. That downturn was understandable, given that the coronavirus pandemic was raging and economic activity around the world had come to a virtual halt. So, in some ways, it makes sense that, out of caution, Energy Transfer cut its distribution from $1.22 per unit per quarter to $0.61, a 50% reduction. However, if you were a unitholder expecting to live off of the income your portfolio generated, a cut that large would have left a huge hole in your budget.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool