SO may not have enough shares authorized for a stock swap. If you remember DUK had to do a 1 for 3 reverse split in order to buy Progress Energy.
Would I rather have $66 or a share and a half of SO... I'll take the stock.
You're right, mlp distributions are not qualified dividends, They're even better, most of the tax is deferred until you sell your units. The trick is to never sell. If you die owning them your kids get the stepped up basis and no one ever pays the tax.
Check NGLS, APU, ETP
That's because it isn't a dividend, it's a distribution.It comes from the cash flow, part of which is profit and part return of capital. This is a partnership not a corporaton, the rules are different. and the tax reporting more complicated.
Most people who buy MLP units ( it isn't a stock) by for the yield. The price of the units is not important unless you're buying or selling.
What's important is the distribution and for now it seems to be safe. No raise in the near future but no cut either.
The Distribution is $2.78 divided by the price per unit of 34.67 gives an 8% yield which is a nice return on your investment.