How safe, given the desire of Congress to find areas to tax, are investments like these limited partnerships in oil/gas pipelines? Appreciate any thoughtful responses as I am looking for better yield but the market seems pretty frothy.
The real problem with ETP is that they have been borrowing the money to pay the dividend for the last two years. Go to the cash flow statements on Yahoo Finance for this security. Look at the amount of dividends and the amount of borrowings for each of the last two years. They are about equal.
The cash flow from operations is not sufficient to pay the dividend. I'm not saying it is a ponzi scheme but at some time borrowing money to pay it out to your investors is going to catch up with you.