Master limited partnerships (MLPs) are attractive to income investors because of their high yields and tax-advantaged status. Most MLP distributions are considered a return of capital and are not taxed as dividends in the year received. Rather, the dividend lowers the cost basis of the investment.

SafetyNet Pro recently added 34 MLPs to its ever-expanding roster of companies rated for dividend safety. Despite the fact that roughly 85% of MLPs are in the energy sector and that oil and gas have taken a shellacking this year, the majority of the MLPs rated by SafetyNet Pro are quite safe.

To celebrate the newly minted MLP SafetyNet Pro ratings, we’re going to take a look at one of the more popular MLPs, Enterprise Products Partners(NYSE: EPD).

Houston-based Enterprise Products Partners operates 19,400 miles of natural gas pipelines and 5,400 miles of oil pipelines, as well as other energy-related assets. The company does not drill for oil or gas. Rather, it sends the oil and gas of its customers through its pipelines, collecting a fee along the way.

In other words, Enterprise Products Partners is not directly impacted by the drop in oil and gas prices. If oil and gas producers want to move their products, they need to pay the owners of the pipelines.

Last year, Enterprise Products Partners had $4.1 billion in distributable cash flow. It paid out $2.7 billion for a payout ratio of 66%. That means that for every dollar of cash flow the company generated, it paid out $0.66 in distributions (MLPs call their dividends distributions). That is well within my comfort zone.

I like to see a company’s payout ratio below 75%. That way, if business declines, the company still has a buffer between its cash flow and its dividend payments, and it won’t have to dip into savings, borrow money or cut the dividend. This year, cash flow is expected to be flat compared to last year’s, so, assuming the distribution is a little higher, it’s still within the safety zone. Going forward, however, we will need to see cash flow increase if the company raises its distribution.