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.
Acquisitions are a key component of growth for most publicly traded partnerships (PTP). The basic strategy is simple: PTPs buy up slow-growing but highly cash-generative assets and use those cash flows to boost quarterly distributions.
Master limited partnerships (MLP) have long been my favorite income-oriented group. The stocks offer an unbeatable combination of high tax-advantaged yields, steady cash flow profiles and the potential for significant income growth over time.
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When it comes to our favorite investments, we're all about getting paid. Getting paid means investing in companies that treat us the way we should be treated--as owners, not just fodder. This helps us avoid getting into real trouble that might make us call out for help with the now common ominous phrase, “Houston, we have a problem.”
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