There is a recent report on MLPs from Lehman. Their top picks to buy now are: XTEX, WPZ, KSP, PAA, EPE, XTXI and also sleepers for the future are GLP and USS.
They rate as top sector - Coal!
That should be taken with caution because they are doing the AHG IPO.
I got my answer from TYG website -
"2004 Dividend Tax Treatment (Common stockholders)
Tortoise Energy indicated that 100% of the common dividends of $0.97 was a return of capital to its stockholders for tax purposes. Stockholders of record should have received an IRS Form 1099 containing such information. "
p_p_n_1 aksed: "Do you know if Fidelity has good coverage on MLPs?"
I have not seen a Fidelity report. But I do know that Fidelity does cover MLPs, from doing google searches, which reveals bits of info, but then not being able to link to those pages because they require a user ID.
p_p_n_1 aksed: "how are dvividends from MLP closed end funds taxed?"
Unlike MLPs with their k-1's, CEFs pay out in 1099's.
P_P_N_1 asked: "Can you advise on a brokerage firm that would be good for long term buy & hold pipeline and other income MLPs?"
AG Edwards and Citigroup do the best monthly MLP updates. I have not seen a monthly Wachovia update - but their MLP Primer is very good. If you are going to buy and hold, then the one time commisions savings going with E-Trade may not be a factor. I would go with the brokerage that gives you the kind of monthly update that you find to be the best value.
If you have not yet signed up for the yahoo MLP group - you need to visit http://finance.groups.yahoo.com/group/MLPS_Royalty_Trusts/ -- there are several brokerage MLP updates there. Read them all. See which update you are willing to 'pay' for.
One other note - you can NEGOTIATE commissions with a full service brokerage.
My broker at Edward Jones was not consistent in his charges. I took the trade confirmation that showed the lowest percentage charge along with me when I opened my AG Edwards account - and asked if I committed to investing $70K with them in 2005, could I get a 25% commission discount? They said yes. I opened the account. [Jones was no help on research for MLPs, and not much help with information on other individual stocks. I do not know if this is due to my individual broker - or if it is a problem for the whole firm.]
EPD definitely has good long term performance. I am trying to understand the short term drivers. After all, other MLPs did better in 2005 and over the last 4 years.
I have a 'buy' sentiment on EPD.
Can you advise on a brokerage firm that would be good for long term buy&hold pipeline and other income MLPs? (Low activity in the account)
"Well, as I look at the 5 year chart in comparison to the S&P 500, I see about a 60% gain in that 5..">>
Actually, Chart, in addition to the above quote, I DID say the following. "5 years PLUS really nice, increasing dividends." This implies recognition of the price appreciation and payout as separate items.
Thanks for the heads-up on the MSN Money charts. You have been a great source of a number of good ideas and resources in the past. I look forward to your contributions on this and the KMP board.
I have been interested in the "Mother Lode" you referenced. I expect that it will be quite the consumer of capital for KMP in the next few years, creating the need for issuance of shares and some earnings dilution until the gas starts flowing. Do you feel that is the reason for the recent warning from KMP that payout increases will "only" be in the 5%/yr range for a few years? Apologies to the EPD board for the KMP discussion here.