If you don't understand what i just said. then you need to stop talking about politics and Step into reality.
In less than a decade, the firm has navigated its way to become a top 10 independent energy exploration and production company, with over 15,500 oil and gas wells in production.
Over the past two years, shares have risen an average of 15% per year.
In addition, LINN just raised its EBITDA (earnings before interest, taxes, depreciation and amortization) guidance to $1.365 billion from $1.35 billion for the fiscal year of 2012.
But for income seeking individuals, this just the beginning…
That’s because LINN boasts a hefty dividend yield of 6.9%, over three times the average dividend yield offered on the S&P 500.
Plus, since the company is an MLP, its quarterly distributions are considered a return of capital, not a dividend. Therefore, you aren’t taxed on the income you receive from it. And you can reinvest each distribution without having to pay taxes on it.
In today’s low-yield environment, it’s an income investor’s dream come true.
However, if you own an IRA account, Roth, or 401(k), investing in a MLP like LINN Energy doesn’t make much sense.
That’s because these accounts are already considered tax advantaged. So you’ll lose the tax benefits that LINN and other MLPs offer when you add them to these accounts. Sometimes you may even get hit with additional taxes.
Luckily, though, there is a way to add LINN Energy to your retirement account without worrying about whether or not it’s okay to do so.