Please make your own decision. But IMHO, BPL is the worst of the three. I recently donated some appreciated EPD and bought some more EPD 6/12/07 at $30.39. EPD, IMHO has historically paid a higher dividend than BPL and has better ratios (according to Yahoo Finance)than Kinder Morgan (KMR or KMP) on the following: current ratio, PEG, return on equity, price/sales. KMR beats EPD on return on assets ratio.
I like KMR for the stock "dividend". With every dividend, my cost tax basis is reduced. The price appreciation in 2007 has been "icing on the cake." I really did not expect it.
I have stayed away from MLPs, because I have read of state tax "horror stories" where various states (wherever they have operations) send you a tax bill with penalties years after the due date. Many investors go through numerous state calculations for very small tax dollars. Too complicated for me, as I do my own taxes. I have looked at Can-Roys and passed for same reason: tax complexity.
Does BPL, EPD, EEQ pay distributions in stock with no Federal or state tax consequences?
---I bought some more KMR today. The rise in EEQ and the slight drop in KMR from my earlier post definitely makes KMR interesting to buy at these levels. Also, a huge factor in KMR's favor vs. BPL or EEQ, and to some extent vs. EPD, is the large insider buying at KMR in June with no insider selling at KMR this year! Richard Kinder bought KMR in June at up to $51/share. People who buy KMR at today's level can get in almost as inexpensively as R. Kinder.
---Frisco: BPL and EPD are much less tax advantaged, IMHO, than KMR (or EEQ). As I understand it, because KMR (and EEQ) issue stock dividends rather than cash dividends, the dividends (i.e., the extra shares of stock you get) are not taxed by state or feds unless and until you sell the extra shares. I haven't had any state or fed tax problems with KMR and have owned it since at least 2002. If you are a person of charity, tax advantages can be even better: You can donate appreciated shares of KMR (either your original purchase or the extra shares you get as stock dividend), help a charity of your choice, and take a very legitimate tax deduction for the full value of the shares on date of donation. If you do this with your dividended shares, you never have to pay tax on the dividend.
---Consider also the information related to summer total return movement in KMR from another post I will be making today. The cumulative total return movement for EEQ was more than 500 basis points less than KMR over the following time frames: 6/14/03 through 10/30/03, 6/15/04 through 10/30/04, 6/15/15 through 10/28/05, and 6/15/06 through 10/30/06. In other words, in the summer KMR tends to do better than EEQ. KMR's total returns (according to Yahoo Finance) during those times were, respectively, 6.15%, 16.83%, 9.78%, and 5.13%. These returns are NOT annualized. So you can see that, historically, KMR is a nice stock to own in the summer.