This is a good thing because it means that investors can largely sidestep the commodity risk inherent in the often volatile energy sector.

The vast majority of the revenues these two industry giants bring in are from fees, so the price of the commodities and products that flow through their systems is not the main driver of financial performance. That basically means they own the pipelines, storage, processing facilities, and transportation assets that help to move energy from where it gets brought up from the ground to where it gets consumed by end users. Reliable businessesĮnterprise and Enbridge both own midstream energy infrastructure. Here are some important facts to get your research started. You will regret not doing a deep dive here if you are looking at dividend stocks today.

The best part? These two midstream energy names have reliable businesses that handily cover the distributions they are paying. If you are put off by the meager 1.5% or so yield you have to accept from an S&P 500 Index fund, then you're likely to start salivating at the 6.1% yield from Enbridge ( ENB -2.10%) or the 7% yield from Enterprise Products Partners ( EPD -1.71%).

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