You’re making a smart investment in an exceptional business, and it rewards you with abundant cash returns year after year. Looks good, doesn’t it?
Passive income is the dream of many investors, but it doesn’t have to be just a fantasy. Here are two high-quality companies that could pay you lucrative cash dividends for the rest of your life.
Enterprise Product Partners
You’d be hard-pressed to find a more reliable dividend stock than Enterprise Product Partners (NYSE:EPD). This energy services giant has been increasing its annual cash payout to investors for a quarter of a century – and it’s currently offering you a reliable 7% rate. yield.
Enterprise owns and operates an extensive network of pipelines, processing plants and deepwater docks that transport oil and natural gas across North America and to international markets. With more than 50,000 miles of pipeline and 300 million barrels of storage capacity, the energy infrastructure titan plays a critical role in delivering cost-effective fuels and other refined products to its customers.
But make no mistake: Enterprise is designed to be a cash-generating machine. Volume-based contracts and a largely fee-based business model help protect the company from the typical volatility of oil and gas prices. In turn, Enterprise can generate cash flow in almost any economic environment.
Additionally, as a master limited partnership (MLP), Enterprise was created to pass on its profits to its investors with large cash distributions. With $6.8 billion in expansion projects intended to bolster the company’s cash production, you can expect these payouts to continue to rise in the years to come.
Powerful global trends are expected to fuel Enterprise’s long-term expansion. Population growth and rising living standards are expected to boost demand for oil and other petroleum products. Additionally, the rapid adoption of artificial intelligence (AI) is expected to lead to increased use of electricity and, by extension, natural gas. Enterprise intends to provide these vital resources to its customers while delivering consistent dividend growth to its investors along the way.
Ares Capital
If you want to build an even bigger passive income stream, take a look at Ares Capital (NASDAQ:ARCC). This constant dividend stock offers you a generous 9% yield today.
As the largest publicly traded business development company (BDC) in the United States, Ares provides private businesses with the liquidity they need to grow. It specializes in lending to “middle market” businesses with revenues typically between $10 million and $1 billion. It’s a huge market that accounts for about a third of the United States’ gross domestic product (GDP) and more than $10 trillion in annual revenue.
Yet these businesses tend to be underserved by traditional banking compared to larger businesses. This creates a considerable profit opportunity for Ares and its investors. In responding to these neglected…
