Enterprise Products Partners (EPD) and Southern Company (SO) emerge as two solid dividend stocks for investors seeking reliable passive income. Enterprise, a North American midstream energy player, minimizes exposure to commodity price volatility by charging fees for its extensive energy infrastructure, including pipelines and storage. This model has enabled EPD to increase its distributions annually for 27 years, with a robust 1.7x coverage ratio in 2025, making it appealing even to conservative investors with its current yield of 5.6%.
On the other hand, Southern Company, a major regulated utility, boasts an impressive 78-year track record of stable or increasing dividends, including 24 consecutive years of hikes. With a yield of 3.2%, above the utility sector average, Southern is well-positioned for continued dividend growth, supported by projected earnings growth of around 8% annually through 2030.
Both EPD and SO exemplify how investors can secure attractive yields without excessive risk, making them strong candidates for a passive income portfolio.
Source: fool.com