The ongoing geopolitical tensions in the Middle East have sent oil prices soaring, prompting renewed focus on energy markets and their volatility. While prices are high at the pump, the instability suggests that a return to equilibrium in oil markets may take time. Amid this backdrop, midstream energy companies like Enterprise Products Partners (EPD) and Enbridge (ENB) present a compelling investment opportunity that mitigates direct exposure to fluctuating oil prices.

Both firms operate in the midstream segment, generating reliable cash flows by charging fees for transporting oil and natural gas, rather than relying on commodity prices. With Enterprise boasting 27 consecutive distribution increases and Enbridge 31 annual dividend hikes, these stocks are appealing to dividend investors seeking stability in a turbulent market. Enterprise offers a 5.8% distribution yield, while Enbridge provides a 5.2% yield, making them attractive options for income-focused portfolios.

Investing in EPD or ENB allows investors to maintain exposure to the energy sector without the risks associated with oil price volatility. As history suggests that oil prices will eventually decline, these stocks may become even more appealing. For a deeper dive into their business models and current market positioning, I recommend checking out the full article.

Source: fool.com