Want $1,000 in Dividend Income? Here's How Much You Have to Invest in Enterprise Products Partners Stock

Enterprise Products Partners (EPD 2.01%) is one of the most sought-after dividend stocks among investors in oil and gas, and rightly so. The midstream energy infrastructure giant has a rock-solid dividend history, having increased its dividend payout every year for the past 25 consecutive years. The stock yields a hefty 7.3% today, also one of the highest dividend yields among large-cap energy stocks.

Over time, Enterprise Products Partners' dividend growth has contributed significantly to the stock's returns: In the past five years, for example, you'd have lost money in the oil and gas stock if not for dividends. With reinvested dividends, the stock's total returns amount to a solid 45% over the period.

If this piques your interest, how much should you invest today in Enterprise Products Partners stock to earn $1,000 in dividend income? Let's find out.

Enterprise Products Partners currently pays a quarterly dividend of $0.515 per share, which amounts to an annual dividend of $2.06 a share and a yield of 7.3% at the stock's current price of around $28.20 apiece. So to earn $1,000 in annual dividend income, you'd have to buy roughly 485 shares of the oil and gas stock, or invest around $13,700 today.

The question is, is Enterprise Products Partners stock worth buying at current prices for income investors?

I'd answer that with a resounding yes.

A bankable high-yield stock

Enterprise Products Partners has a strong balance sheet and has steadily grown its cash flows to support bigger dividends. For perspective, the company's distributable cash flow (DCF), or the cash available for distribution to shareholders after funding maintenance capital expenditures, has consistently stayed above 1.5 times since 2018. In other words, Enterprise Products Partners generates enough cash flows to cover its dividends.

With Enterprise Products Partners generating stable cash flows under long-term, fee-based contracts and seeking growth from projects worth nearly $6.9 billion currently under construction, it remains a bankable, high-yield dividend stock to buy and hold.