Best Dividend Paying Stocks Enterprise Products Partners (NYSE: EPD)

Enterprise Products Partners EPD

The dividend paying stocks I would like to profile today have been on my radar screen for quite some time.  Enterprise Products Partners L.P.  is organized as a Master Limited Partnership (MLP).  However, before I present the profile, I would like to discuss briefly what a Master Limited Partnership is and how it works.

Simply put, an MLP is a publicly traded limited partnership.  An investor purchases shares of ownership which are referred to as units, similar to owning shares of stock in a company.  Once you own units in an MLP you are considered a unitholder (partner).

MLP’s are not subject to corporate income tax as long as they pass through 90% of their income to their partners.  Partners receive an IRS Schedule K-1 from the master limited partnership for dividend income received and are taxed at the unitholder level.  If you are unfamiliar with MLP’s, take some time to do some research before investing.  MLP’s can pay a portion of their dividend income in the form of unrelated business taxable income (UBTI).  This can cause a problem if you hold an MLP in a tax-deferred account and collect more than $1000 in UBTI.  For this reason, MLP’s are best held in a taxable brokerage account.

Enterprise Products Partners LP (NYSE: EPD)
Business: Energy MLP   Annual Dividend: $2.39 Yield: 5.57%
Payment Frequency: Quarterly   Recent Price: $44.15

Enterprise Products Partners L.P. is an energy sector MLP based out of Houston Texas. EPD is the largest publicly traded energy partnership in the nation and is a leading provider of energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, refined products and petrochemicals.   Since it’s initial public offering in July of 1998, EPD has grown it’s asset base from $715 million to $31 billion by December of 2010.  The asset base is broad and diverse. Here are just a few of their assets…

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Posted by Dividend Paying Stocks - October 25, 2011 at 5:36 am

Categories: Energy   Tags: , , , , ,

Best Dividend Paying Stocks Brookfield Infrastructure Partners (NYSE: BIP)

The dividend paying stock that I would like to profile today is Brookfield Infrastructure Partners (BIP). BIP operates high quality, long-life assets around the world that generate stable cash flows and require minimal capital expenditures to maintain.  Due to the nature of its holdings and other monopolistic characteristics, BIP’s infrasturcture assets tend to appreciate in value over time. Its current business consists of ownership and operation of premier utilities assets, transport and energy sector assets, and timber assets in North America, South America, Australasia and Europe.

What does this mean in layman’s terms? It means if you own BIP, you own stakes in dozens of infrastructure monopolies across the entire world. And in addition to capital gains, Brookfield Infrastructure Partners pays investors a 5.54% dividend each year to own it (as of this writing).

Brookfield Infrastructure Partners Map of Operations Read more…

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Posted by Dividend Paying Stocks - October 23, 2011 at 1:26 pm

Categories: Energy, Utilities   Tags: , , , ,

8 Dividend Paying Stocks Yielding 8% or Better

Have you been wishing you had more income lately? Are you concerned you might reach retirement and not have the income to cover your expenses? If your under the age of 55, you might be worried that social security will go bankrupt by the time your ready to retire or look vastly different than it does today. What if you lost your job tomorrow? These are all legitimate concerns. If this is the kind of stuff that keeps you up at night, you might want to focus on income investing with dividend paying stocks.

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Income investing has been pushed aside in favor of trying to predict the next big stock that’s gonna double your money in a mere matter of months. As people run around throwing money at volatile stocks that surge one day and crash the next, there’s a disciplined group of investors who are quietly building an ever increasing income stream from dividend paying stocks.

Today I’d like to present 8 different dividend paying stocks yielding 8% or better that can put you on the road to income investing. These picks are some of my favorites and were screened using my 8 Dividend Investing Rules. Here they are in no particular order…

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Posted by Dividend Paying Stocks - October 23, 2011 at 6:22 am

Categories: Basic Materials, Consumer Goods, Energy, Financial, Healthcare, Technology, Telecom, Utilities   Tags: , , , ,