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Don't Get Caught Up in the Oil Rally: This High-Yield Stock Will Keep Paying Long After the Rally Ends

newsfeedback@fool.com (Reuben Gregg Brewer)
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⚡ Quantum Brief
Midstream energy firm Enterprise Products Partners offers a 5.6% yield, backed by 27 consecutive annual distribution increases, providing stability amid volatile oil markets driven by Middle East conflicts. Unlike commodity-exposed oil producers, Enterprise’s fee-based pipeline model avoids direct oil price risk, generating steady cash flow from essential energy infrastructure demand. The company’s distributable cash flow covers payouts 1.7x, with an investment-grade balance sheet, appealing to conservative income investors seeking reliable returns. Oil and gas remain critical despite clean energy growth, ensuring long-term demand for Enterprise’s pipelines, which are difficult to replace and vital to global energy flow. Analysts highlight Enterprise as a low-volatility energy play, ideal for investors wary of oil price swings but wanting sector exposure through stable, high-yield distributions.
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By Reuben Gregg Brewer – Apr 10, 2026 at 11:15AM ESTKey PointsThe geopolitical conflict in the Middle East has upended global energy markets. This 5.6% yield is backed by 27 annual distribution increases and a reliable fee-generating business. Oil prices have risen dramatically over the last few months as the geopolitical conflict in the Middle East has unfolded. They can swing wildly from day to day on news flow, but they are doing so at an elevated level. If you buy an oil producer, you have to go in with the understanding that oil prices will eventually return to lower levels, as they have after past industry disruptions.

Enterprise Products Partners (EPD +0.32%) lets you sidestep the commodity risk and collect a huge 5.6% distribution yield. Here's why it could be a great energy investment for conservative income investors. Energy is vital regardless of oil prices Oil and natural gas are looked down upon because they are carbon based fuel sources. However, they remain vital to the world economy and will likely remain so for decades to come, even as the use of cleaner energy sources grows. Without carbon fuels, the world would grind to a halt. Every investor should have some exposure to the energy sector. Image source: Getty Images. The conflict in the Middle East, however, underscores the sector's inherent volatility. And that may put off more conservative investors. But you have options. The sector is generally broken down into three parts: the upstream (production), the midstream (pipelines), and the downstream (chemicals and refining). The upstream and downstream are commodity-driven, but the midstream is fee-based.

Enterprise Products Partners has a great record In addition to a well-above-market 5.6% yield, Enterprise also has a 27-year streak of annual distribution increases. Its distributable cash flow covers its distribution by a very comfortable 1.7x. And the midstream master limited partnership has an investment-grade-rated balance sheet. Even the most conservative dividend investor should feel comfortable with this high yielder. ExpandNYSE: EPDEnterprise Products PartnersToday's Change(0.32%) $0.12Current Price$37.64Key Data PointsMarket Cap$81BDay's Range$37.37 - $37.7952wk Range$28.54 - $39.73Volume29KAvg Vol4.7MGross Margin12.86%Dividend Yield5.80% The key to the whole story, however, is Enterprise's business model. It is one of the largest midstream operators in North America. Its portfolio of energy infrastructure assets would be difficult, if not impossible, to replace. And its revenues largely come from fees for the use of its assets, so the price of the products being transported isn't nearly as important as demand. As noted, demand for energy is strong at all times because of the importance of oil and natural gas to the global economy. Forget about oil prices, buy high-yield Enterprise If watching the gyrations in energy prices makes you queasy, you probably shouldn't buy an oil stock today. If history is any guide, the high prices won't last. But when oil prices do, eventually, fall, Enterprise's distribution will still be well supported by its fee-generating business. Buy it, and you can sleep well at night, focusing on your distribution checks while happily forgetting about oil prices.Read NextApr 9, 2026 •By Thomas Niel3 Stocks to Buy Now for a Lifetime of Passive Income -- Starting ImmediatelyApr 9, 2026 •By Sean WilliamsMeet Wall Street's Safest Ultra-High-Yield Dividend Stocks: 2 Companies That Have Raised Their Payouts a Combined 216 Times Since 1994Apr 8, 2026 •By Reuben Gregg Brewer3 Dividend Stocks to Double Up On Right NowApr 5, 2026 •By Matt DiLalloBest Pipeline Stocks for 2026 and How to InvestApr 3, 2026 •By Matt DiLallo20 Best High-Yield Dividend Stocks to Buy in 2026Apr 2, 2026 •By Matt DiLalloBest Oil ETFs for 2026 and How to InvestAbout the AuthorReuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.TMFReubenGBrewerStocks MentionedEnterprise Products PartnersNYSE: EPD$37.64(+0.32%)+$0.12*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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