Enterprise Products Partners: Buy, Sell, or Hold?

The energy sector has been thrown into disarray since the geopolitical conflict in the Middle East began in early 2026. Oil and natural gas prices have been volatile, often driven more by investor sentiment than by market fundamentals. And through it all, Enterprise Products Partners (NYSE: EPD) has continued to provide investors with a well-above-market yield backed by reliable cash flows. Here's a quick look at the buy, sell, hold call on this energy industry stalwart.

Buy and hold Enterprise Products Partners

The reasons to buy and to hold Enterprise Products Partners are essentially identical. For starters, it is a service provider to energy companies, collecting fees for helping to move oil and natural gas around the world. The price of the commodities moving through Enterprise's vast North American energy infrastructure network is less important than the volume being moved. And since energy remains vital to modern life, volumes tend to be robust most of the time. In a sector known for volatility, Enterprise has a very consistent and reliable business.

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It is also financially strong, with an investment-grade credit rating. And its distributable cash flow in 2025 covered its distribution by a robust 1.7x, leaving ample room for adversity before a cut would likely be on the table. There's no reason to expect the 28-year streak of annual increases to be at risk. And given the $6.5 billion in capital investment plans the master limited partnership (MLP) has lined up, further increases seem highly likely. Now add in the well-above-market 5.6% yield, and you can see why dividend investors might want to buy and hold Enterprise Products Partners over the long term.

Sell or avoid Enterprise Products Partners

With that background, the one thing investors shouldn't expect is for Enterprise to benefit directly from rising energy prices. An oil and gas producer like Devon Energy (NYSE: DVN) would be the better choice for that, or even an integrated energy major like Chevron (NYSE: CVX), which has exposure across the entire energy value chain. Also, investors seeking rapid dividend growth will likely want to look elsewhere. Enterprise's distribution tends to rise in the low- to mid-single digits. It is a slow-and-steady tortoise, in which the yield will make up a significant portion of an investor's total return over time.

If you don't like boring dividend stocks, you almost certainly won't like Enterprise. However, this MLP could be the perfect fit if you are looking to maximize the income you generate from your portfolio and want to add some energy exposure for diversification purposes.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.