Got $1,000? This elite high-yielding dividend stock could turn it into over $70 in passive income annually.

There are no sure things in investing. However, Enterprise product partners (EPD 0.34%) it was as bankable as them. The master limited partnership (MLP) increased its cash distribution to investors every year since its initial public offering (26 years in a row).

The MLPs currently the payment brings more than 7%. At this rate, it could turn a $1,000 investment into an investment of over $70 annually passive income current. This large revenue stream should continue to grow in the future. These features make it an excellent investment option for those who want income and are comfortable receiving one Attach federal tax form K-1 that MLPs like Enterprise send to their investors every year.

A cash flow generating machine

Enterprise Products Partners operates a diversified portfolio of midstream assets. These businesses generate a very stable cash flow, with most come from long-term, fixed-rate contracts and government-regulated rate structures. Over the last 12 months, the MLP produced $8.4 billion in adjusted cash flow from operations.

The company distributed about $4.4 billion of that money to investors, giving it a payout ratio of about 52 percent. This is a very conservative level for a pipeline company. It allows the MLP to retain significant free cash flow to fund expansion projects, buy back its units and maintain a strong balance sheet. It made $4.1 billion in capital investments over the past year and $200 million in unit buybacks.

The company’s sustainable cash flows and low payout ratio help it maintain a strong balance sheet. He has a low 3.0 leverage ratio and one of the highest credit ratings in the midstream sector.

The midstream company combination of stable cash flows, low payout ratio and low level of leverage put its 7% yield payout on solid footing.

A lot of growth is coming down PIPE

Two factors helped fuel Enterprise Products Partners’ dividend growth engine over the years: organic capital projects and increased acquisitions. MLPs typically invest billions of dollars every year in organic growth projects, including $3.5 billion over the past 12 months to complete construction on projects such as its Leonidas and Mentone 3 gas processing plants and the Texas Western Products System. These projects contributed to an 11% increase in adjusted cash flow from operations in the second quarter. That growing cash flow has allowed it to increase its distribution by 5% over the past year.

Enterprise Products Partners currently has $6.7 billion in major capital projects under construction and more in development. They are notable projects at present the building includes its Mentone West and Mentone West 2 gas processing plants, the Bahia natural gas liquids pipeline and several export capacity expansion projects. These projects should come online by the end of 2026, provided a lot of visibility into future cash flow growth. This growing cash flow should allow the MLP to continue to grow its distribution.

The MLP will also make incremental purchases as opportunities arise. For example, recently agreed to buy Pinon Midstream in a $950 million deal. The acquisition will enhance the company’s capabilities thanks to Pinon’s specialized processing assets. Meanwhile, it will be extremely favorable for the company’s midstream distributable cash flow. It will add $0.03 per share in the first year, with more to come as it captures commercial and operational synergies.

That deal was the second of the year for Enterprises (it also bought $400 million in joint venture interests from fellow MLP Western Midstream). The company has a strong balance sheet, which gives it ample financial capacity to continue to close deals as attractive opportunities arise.

A strong and growing passive income stream

Enterprise Products Partners has an elite track record in growing its distribution. The company’s high-yield payout is on solid footing and should continue to move higher in the future. Because of that, it is a great one passive income investments.