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Master Limited Partnerships Set to Rebound

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"With the price of most Master Limited Partnerships falling with the Dow, this makes MLPs a great buying opportunity and a chance to pick up a 12.5%–17% effective yield."

Seeking Alpha, Timothy O'Rourke

With the price of most Master Limited Partnerships falling in the past few weeks the same amount as the Dow (both were down about 17% this month), this makes MLPs a great buying opportunity and a chance to pick up a 12.5%–17% effective yield over the next year, if you get in soon. What's more, MLPs have great potential to increase their dividend yield over time because of the types of businesses they are in (energy transport), and their fees are indexed to inflation. If MLPs had been priced this low on August 2nd (when I was conducting the research for that article) I would have included them for my "Ideal Dividend Portfolio" article. By including MLPs in the portfolio, diversification will be greatly increased, and risk will be reduced.

The best part of MLPs is their business model. They never own the commodity they are transporting, so they do not have to deal with bubbles/spikes in the price of those commodities. . .View full article

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