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Enterprise Products Partners L.P. Message Board

  • polygeo200 polygeo200 Nov 12, 2012 7:45 PM Flag

    EPD to soar on Obama tax plan

    EPD will soar once the Obama tax plan is passed. This is because any increase in the dividend tax rate won't effect EPD. MLP's payout is considered a "return of capital" which will be taxed at the lower capital gains rate. Consequently, fund managers dealing with yield hungry investors will switch in to the MLP space.Assuming the top dividend rate of 39.6%, EPD would be valued closer to $61 per share

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    • "MLP's payout is considered a "return of capital" which will be taxed at the lower capital gains rate."

      Sorry, that's not correct, at least not till you reach zero basis.

    • I agree with your synopsis but I don't trust Obama because he continues to break hard left. I always thought Americans were an intelligent group but after reelecting Mr. Redistributionist...I have changed my mind. I am long EPD and have been for over 5 years and may now sell some bonds and buy more EPD on a dip below $48 per your analysis above. Well done polygeo200!

      Sentiment: Buy

      • 1 Reply to debgideon
      • Americans are indeed intelligent but alas u r not. Under Obama the S&P and 401ks have soared.
        The S&P 500 was around 800 when GWB left and it was 1400 on re-election day. Yes Obama is wrong to raise tax rates on the "2 percent" and I happen to be amongst them but HE IS NO WARMONGER like the Repubs have unfortunately become. If Romney had won we would have at least 2 new Mideast wars on the credit card and revisited 800 on the S&P.
        So be very thankful. Returning to Clinton era plus tax rates is bad but not anywhere near as bad as unending wars on the credit card.

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