Wed, Dec 24, 2014, 11:39 PM EST - U.S. Markets closed early today

Recent

% | $
Quotes you view appear here for quick access.

Enterprise Products Partners L.P. Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • arbtrdr arbtrdr Feb 11, 2010 10:19 AM Flag

    Stick with the Big Fish or...?

    I first agree the EPD is actually fairly well diversified, however, a group of MLPs certainly makes sense and does offer additional protection to stabilize a return. As was already stated TurboTax does my 10 MLPs just fine.

    You mention diversifying to get a higher yield. A couple thoughts here. First is Factoids CAGR. Howfast is the distribution growing. Does no good to buy a MLP with a 2% higher yield if they do not grow their distribution, does it? A slower steady grower might in the longer term provide better growth.

    Second is that distribution yields generally equate a balance between future growth and risk. Those MLPs with higher yields are either perceived as having less growth potential, have a riskier business, or are weaker financially. Thus the E & P sector has high yields due to risk and some of the smaller MLPs higher ones due to lack of financial strength.

    EPD is my core holding and the one I bought first. Adding additional MLPs now might be a good plan.

    ARB

 
EPD
35.45+0.25(+0.71%)Dec 24 1:04 PMEST

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.