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.
Buy Targets and an Aggressive Addition
Though distribution growth inevitably leads to price gains, sticking to value-based buy targets is as important with MLPs as it is with traditional equities.
$7 Natural Gas
Master limited partnerships (MLP) stand to benefit as US producers ramp increase their output of oil and natural gas liquids from shale plays. Here's how to profit.
How to Take a Profit
We're booking a profit on a big winner, a prodigous rally having lifted it well above our buy target. It's current yield no longer justifying the risks involved, it's time to lock in a portion of our gain.
Rating MLP Safety
Taxes are going up under the Obama administration. The best place to find cover: safe and steady MLPs.
3/29/10: Breaking News – Conservative MLP
A leader in the energy industry and an innovator in the MLP space, Enterprise Products Partners LP (NYSE: EPD) founder Dan Duncan will be remembered for always aligning his interests with unitholders.
3/22/10: Market Update #2
Linn Energy LLC (NSDQ: LINE) announced after the close Monday that it's raising a bunch of capital via a $500 million private offering of senior notes, a renegotiated revolving credit facility and a secondary offering of units.
Eye on Earnings
Time and again we’ve seen these MLPs surge well above our recommended buy prices--which are based on fundamental business value--only to retreat again. It’s always better to be patient.
MLPs and Natural Gas Liquids
Conditions are favorable for MLPs with exposure to natural gas liquids. Here's how to play it.
Where We Stand
Your only protection as an investor is to make sure of the underlying businesses of the MLPs you own. If the business is sound and growing, the unit price is going to go higher over time, even as it pays you a rising stream of distributions. If it’s not, the distribution will stagnate, at best.
