Master Limited Partnerships
Master limited partnership (MLP) investments offer a simple value proposition: tax-advantaged high yields and strong recession-resistant growth potential.
MLPs allow investors to defer much of their personal income tax liability for years into the future or, in many cases, indefinitely. Unlike regular corporations, a master limited partnership doesn’t pay traditional corporate-level tax. Instead, these partnerships pass through the majority of their income to investors in the form of regular quarterly distributions. In other words, 80 to 90 percent of the distribution you receive from the MLP is tax-deferred.
Learn more about how to add master limited partnerships to your portfolio with the latest in-depth analysis in the archive below. For a detailed understanding of the MLPs, including what they do, how they are taxed and the best plays to consider for your portfolio, check out our free guide: MLPs: High Yields and Low Taxes.
The crude-by-rail trend is starting to look like a longer-term solution to a lack of midstream infrastructure, and numerous MLPs have at least some exposure to it.
With midstream infrastructure failing to keep pace with production from the prolific US shale plays, some MLPs are resorting to shipping crude by rail to ensure access to key coastal markets.
This energy services MLP has significant international exposure, which helped its operations weather the drop in domestic natural gas prices over the past year.
This refined products shipper is hoping to engineer a turnaround by diversifying its fleet into container vessels. But it also recently suffered a significant setback.
Overproduction in the prolific US shale plays has produced another short-term commodity casualty: ethane.
MLPs typically suffer selloffs following their secondary offerings, and that gives long-term investors the opportunity to build a position with an attractive payout.
The nascent wave of MLP mergers will ultimately strengthen the biggest players, whose enhanced scale could spur further growth.
This MLP's unit price has fallen to the point where its targeted payout offers the prospect of an enticing double-digit yield. But is it safe?
At the time of its IPO, this MLP was a vertically integrated propane retailer. But it’s since transformed itself into a diversified midstream operation.
These two MLPs have been beaten down, but judging by significant buying among corporate insiders, they could finally be in turnaround mode.