Since oil trades at around $110 a barrel today, a monkey throwing a dart could pick a winning oil and gas company. So while a lot of investors are looking at energy stocks right now because they're flush with cash, those seeking income need a longer-term mindset than just today's oil glut, and would do well to remember those energy stocks that protected their shareholder payouts during the crisis.
If a company maintained its dividend payments during the worst of times, they're a good bet to continue preserving them if rocky times are revisited in the future. That's why Enterprise Products Partners (NYSE:EPD) is my pick for the safest dividend-paying energy stock you can buy today. One of the reasons Enterprise is such a strong energy stock is that it derives most of its revenue from long-term, fixed-fee, or take-or-pay contracts, which means it gets paid regardless of whether its customers accept delivery of the product or not. That provides stable revenue streams and predictable cash flows.
Source: Motley Fool
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