The Ultimate High-Yield Stock to Buy With $500 Right Now

The average energy stock yields 3.2%. The S&P 500 yields 1.2%. Midstream energy giant Enterprise Products Partners (NYSE: EPD) yields 7%, twice as much as the average energy stock and over five times more than the broader market. And Enterprise's unit price is only about $30, so you can get in the door with even less than $500 if you want.Midstream players like Enterprise own large energy infrastructure like pipelines, storage, and transportation assets. These are hard to replace or displace and vital to the energy sector's operations. They are also very expensive to build. So leverage is a notable issue in the midstream sector.That weighed on the entire sector when interest rates were on the rise. Higher rates basically meant higher operating costs. That was a key reason why Enterprise's unit price was weak following the market drop during the early days of the COVID pandemic. That drop, ironically, was caused by a concern that energy demand would decline along with economic activity. However, the vast majority of Enterprise's cash flows are driven by fees, not energy prices.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool