Better Buy: Enbridge vs. Plains All American Pipeline

Canadian-based Enbridge (NYSE: ENB) offers investors a 6% yield, while Plains All American Pipeline (NYSE: PAA) has a 7.5% yield. Before you simply jump at the higher yield here, though, you need to do a little more homework. These two midstream companies are very different. In the end, one does look like a better option than the other. But here's the thing: While the dividend is a key consideration, the yield is actually less important than you might think.

Plains is a midstream focused master limited partnership. It owns a diverse collection of pipelines, along with storage, processing, and transportation assets that help to move oil and natural gas from where they get drilled to where they end up being used. It has a $13.5 billion market cap, so it is hardly small. That said, it isn't exactly an industry giant, either.

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Source: Motley Fool
(January 24, 2020 - 11:34 AM EST)

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