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$17.26 -0.74 (-4.11%)
11/21/2008 4:02 PM

Enterprise Products Partners L.P. (EPD)

CAPS Rating:
*****

A North American midstream energy company providing a range of services to producers and consumers of natural gas, natural gas liquids, crude oil, and certain petrochemicals.

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Avatar burro100 (67.20) Submitted: 8/24/06 4:18 AM : Outperform Start Price: $23.31 EPD Score: 15.74

A great energy play that isn't subject to the volatility that is generally characteristic of other energy stocks. Insiders have been buying this stock for months. It pays a dividend of almost 7%, and they have steadily increased their dividend payout. I predict that the dividend alone will beat the S & P 500.

I started buying this in the low 24s, but I still think this stock is worth it where it is right now. I've chased higher yields with other stocks, and I have found there is a reason for the high yields - they're risky. This company has a high yield, because it makes lots of cash. Since it is an MLP, they pay it all back to the shareholders.

Perhaps the biggest downside to this stock is the accounting headache at tax time. You also can't own it in a roth IRA and other tax advantaged accounts.

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Avatar T5enterprise (< 20) Submitted: 9/15/06 6:50 PM

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I'm thinking about adding this stock to my personal portfolio. Could you explain a little more about the tax issues that go along with owning this stock?

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Avatar dond261 (82.40) Submitted: 3/17/08 1:34 PM

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I've owned EPD for a number of years in a Roth and a Rollover IRA. My tax man(CPA) has no problem with it.

You lose the depletion allowances but also loose the accounting headaches also. I don't think it is worth the hassel outside a tax advantaged account.

Don

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