Enterprise Products Partners (EPD): A Strong Pick for Passive Income Portfolios in 2025

Enterprise Products Partners L.P. (NYSE:EPD) is included among the 12 Best Stocks to Buy Now for Passive Income.

Enterprise Products Partners L.P. (NYSE:EPD), based in Houston, Texas, is a midstream company focused on natural gas and crude oil pipelines. As a master limited partnership (MLP), it offers a distribution that is well protected, covered 1.7 times by distributable cash flow, making the payout very secure.

Further stability comes from its investment-grade credit rating. Even if coverage dipped, Enterprise Products Partners L.P. (NYSE:EPD) could rely on its strong balance sheet to weather short-term challenges. That said, such a scenario is unlikely because Enterprise’s business is fee-based. It earns money by charging customers to use its infrastructure, such as pipelines, meaning its performance depends more on energy demand than on oil and gas prices. Since global demand for energy remains steady even during periods of weak commodity prices, its cash flows are generally resilient.

Enterprise Products Partners L.P. (NYSE:EPD) is a solid dividend company, offering a quarterly dividend of $0.545 per share. The stock has a dividend yield of 6.94%, as of September 22. It is among the best stocks for passive income as the company has been raising its payouts for 27 consecutive years.

While we acknowledge the potential of EPD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.