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.
Money in the PIPEs
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.
Dividends on the Cheap
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.
We Love Seafood
Plankton and tuna both live in the same ocean, but biologists evaluate them using very different criteria because one is a fish and the other is a drifting micro-organism.
Come on Feel the Noise
Are we done with the hullabaloo yet?
Every day, it seems, there’s a bunch of noise signaling that we’re doomed, that any second the market will meet its end and the economy will soon follow. Then…poof, all that hysteria’s set aside and folks back up their trucks, screaming with glee that everything’s OK. And for whatever reason--be it some Federal Reserve rumor or petrodollars from the Persian Gulf--all is well.
Houston, We Have a Problem
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.”
Can’t Afford to Miss It
The Alerian MLP Total Return Index is up 153 percent over the past five years, double the S&P 500’s 75 percent gain.
Horsepower
We got the interest rate cut by the US Federal Reserve Open Market Committee (FOMC), and now all’s well with the markets, right?
A Great Start
For the most part, initial public offerings (IPOs) have been bad news for individual investors; all the hype surrounding new stocks routinely leads to inflated prices.
The Generals
A common feature of all publicly traded partnerships (PTPs) is that they’re flow-through entities; PTPs pay no corporate-level tax and pass through the majority of cash flows directly to investors as distributions.
Stability In Income
The news continues to turn bullish for the energy patch. US motor gasoline inventories are still far lower than average for this time of year as we head into the peak summer driving season. It's no wonder gasoline prices are soaring.
