Master limited partnerships (MLPs) can be attractive income-producing investments at any time, but with yields of 6%, 7%, 8%, or higher, yield-hungry investors with a long-term focus should be considering them seriously.
Investors tend to lump energy MLPs into a single bucket, but this isn't the case. MLPs can be broken down into several subgroups including major diversified; natural gas pipelines and storage; oil pipelines and storage; gas gathering and processing companies; oil and gas production companies; propane distribution companies; coal royalty and production companies; sea transport companies; fertilizer companies; and others.
Each of the MLP subsectors has its own dynamics, with some more exposed to energy prices, spot rates, and weather than others. One of the top subsectors for investors to consider is natural gas pipeline operators, which basically act as "toll takers" that collect fees for transporting gas from where it is produced or imported to where it is stored or used, often under long-term contracts with suppliers. The companies tend not to be exposed to volatile commodity prices and their cash flows support steady distribution growth.
In a new 80-page special report entitled Eleven Income Stocks to Climb the Fiscal Cliff with in '13, BullMarket.com gives its top-11 high-yield stocks for the new year, as well as gives opinions on 70 high-yield stocks, including over 50 MLPs from each of the different subsectors. This is the 5th annual High Yield Report BullMarket.com has published. The 4-year cumulative return of the other reports are 166.2%, greatly outpacing the 73.9% return of the S&P over the same period
Among the MLPs featured in this special report include coal producer Alliance Resources (ARLP), propane distribution company AmeriGas (APU), drybulk shipper Navios Partners (NMM); fertilizer maker CVR Partners (UAN), and LNG shipperTeekay LNG (TGP), among many others.
For access to the 80-page report, examining each pick's dividend history, business activities, strengths, weaknesses, latest earnings report, and much more, visit BullMarket.com. MLP investors would also be interested in BullMarket.com's dedicated MLP hub and earlier MLP special report.
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- Investment & Company Information
- Master limited partnerships
- natural gas pipelines