I am looking at ETP and EEP as MLP "value" stocks. If they can start to increase Distributions at a more rapid pace then price will rise. They are paying 7+% because they have not increased at a good pace. EPD and KMP are the blue chips, raising distributions at a good steady pace and price rises. Paying 5-5.5 %. So will ETP and EEP be "value" stocks or turn out to be "value traps",
I have "drank the Kool aid" and continue to wait for the upswing for ETP and EEP..
tp is correct. The question is how long until ETP, BWP, BPL, EEP/Q and the rest get their distribution increases going. \
Since they are paying about 3% on average more in yield they have two positives. The first is they have a "bond yield" floor and are less likely to drop big time when interest rates rise. You also have something in the manner of 4 years to still be ahead if EPD for example increases its distribution at a 6% rate it will take several years to get the yield even though it is increasing on cost to catch up with ETP. Most people are predicting ETP to increase modestly late this year of in January for Q4 of 2013. Sort of the same for the others, but EEP/Q might be another quarter or two to begin increases.
I have bought all of these in place of bonds in my portfolio. I have upside at some point down the road and a yield above that I can obtain on a similarly rated bond. They tend to have a lower beta and I am paid to wait, just like a bond.