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Why MLPs Are Still an Attractive Option for Income Investors

Ruth King
Why MLPs Are Still an Attractive Option for Income Investors

Energy MLPs had been a favorite for income-seeking investors for nearly two decades. The challenges following the slump in oil prices in 2014–2015 took the wind out of this sector, though. However, as the sector consolidates and companies find ways to survive and grow in the new environment, some interesting opportunities seem to be available for investors. The Alerian MLP Index, a benchmark index for energy MLPs, is trading at a yield of ~8.1%. That’s ~5% higher than the US ten-year Treasury yield.