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.
One of our Aggressive Portfolio holdings announced an acquisition this morning, a deal that bodes well for the MLP's unitholders and suggests that conditions area improving for another recommendation that operates in the region.
High-quality energy assets with effective monopoly positions that generate virtually recession-proof fee income: That’s the never-ending story of the MLPs in our Conservative Portfolio.
Publicly traded general partners offer investors a compelling way to leverage their returns in certain MLPs.
One of our Growth Portfolio holdings and one of our Aggressive Portfolio holdings announced secondary offerings this morning. Use the resultant dip in unit price as a buying opportunity.
One of our Growth Portfolio holdings announced a secondary offering; the units are trading 5 to 6 percent lower today. We recommend that readers take advantage of this buying opportunity.
No yield is worth its salt unless it’s sustainable. That’s a lesson heedless yield chasers learned all too painfully during the bear market, as the profligate slashed payouts and saw their share prices crater, some to oblivion.
In a market where most income-oriented groups offer near record-low yields, investors are starving for income. All MLPs offer market-beating distributions, as well as attractive tax advantages, but fight the temptation to blindly reach for the highest yields.
Four of the six recommendations in the MLP Profits Aggressive Portfolio have reported third quarter results. All four amply covered their distributions for the period.
High-quality energy assets with effective monopoly positions that generate virtually recession-proof fee income: That’s the hallmark of the six master limited partnerships that populate the MLP Profits Conservative Portfolio.
With the uncertainties of the economy, where do we go from here? How can MLPs help?