The quest for becoming a millionaire is usually depicted as a high-stakes, high-growth venture: the next tech giant, the latest disruptive startup. But what if the real ticket to wealth wasn’t a hare, but a dependable, high-yield tortoise? That’s the question income investors are asking about **Enterprise Products Partners (EPD)**, the massive energy infrastructure powerhouse that boasts one of the stock market’s most impressive distribution yields.
Currently, the master limited partnership (MLP) offers a distribution yield hovering around **6.8%**. Compare that to the S&P 500’s average yield, and you can see why this company generates significant buzz for anyone focused on passive income. But can a slow-and-steady energy company truly be your path to a seven-figure portfolio? The answer depends on your definition of a millionaire-maker.
A Fortress Built on Fees
Enterprise Products Partners operates in the “midstream” sector of the energy market. Think of them as the toll-road operators for the oil, natural gas, and natural gas liquids (NGLs) flowing across North America. This is the secret sauce to its stability: its business model is predominantly **fee-based**. In simpler terms, the company generates revenue based on the volume of product moving through its pipelines, processing plants, and storage facilities, not the fluctuating price of the commodity itself. This predictable cash flow is what supports that enormous distribution yield.
The company also has a legendary track record for reliability, having increased its distribution for **27 consecutive years**. That incredible streak includes weathering multiple energy downturns, the 2008 Great Recession, and the COVID-19 pandemic. Furthermore, nearly 90% of its long-term contracts include inflation-protected escalation clauses, providing a built-in hedge against rising costs.
The Real Path to Wealth: Reinvestment
So, back to the big question. Will EPD units shoot up 500% overnight? Highly unlikely. Enterprise is a behemoth, a business built for stability and income, not explosive growth. Over the last five years, its annual distribution growth has been a modest, yet consistent, average of 3.4% to 4.5%. This is where the compounding factor of its high yield comes into play.
For investors focused on becoming millionaires over the long term, EPD provides a dual engine of return: a hefty dividend today and the power of reinvesting that income to buy more units. This creates a snowball effect that is difficult to replicate with lower-yield stocks. Analysts project that combining the high yield with modest unit price appreciation could translate to an **annual total return potential of 11% or more by 2030**.
Future-Proofing the Business
Management is also reinforcing the company’s strong financial position, which includes an investment-grade credit rating. The distribution is currently covered by a robust 1.7x distributable cash flow ratio, providing a significant margin of safety. EPD is simultaneously bringing online billions of dollars in new capital projects, such as the Bahia NGL Pipeline and Neches River export terminal, which are set to boost its fee-based revenue streams further into 2026 and beyond.
Ultimately, Enterprise Products Partners is the epitome of an income investment. It’s the opposite of a lottery ticket. While it may not provide the thrill of a speculative growth stock, its ultra-high, reliably growing yield and fortress-like balance sheet offer a steady, predictable source of wealth accumulation, making it a compelling candidate for anyone building a retirement or passive income portfolio.
