KMP in a partnership. KMP pays a distribution, not a dividend. The distribution is treated similar to return of capital. Unit holders receive a K-1 each year reporting income to report on owners tax returns.
Go to KMP web-site for more information.
Effectively, most of the distribution is tax deferred until a Unit holder sells, then the rate is effectively at your ordinary income rate. A Unit holder can defer this tax for a very long time by holding the Units (and collecting the distributions).