Three MLPs to Take Gains, Three Yield Ideas for the Week

In any financial magazine, website, discussion thread, or golf foursome at any given time on any given day, if three high dividend yield ideas are being discussed, it’s almost a sure thing that one of those ideas will be some sort of pipeline/energy MLP (master limited partnership). Armed with cash yielding zero and the buzz generated by the above referenced “reliable” sources, investors have bid the energy MLP names up over the last year. As we slide into the end of the year and look for gain and loss candidates, it might behoove one to nominate a few MLP names as gain takers. From our vantage point, there are a couple of signs that tell us this may be so. 1. Packaged MLP investment products - this year we’ve seen launches of quite a few ETFs, ETNs (exchange traded notes), and UITs (unit trusts) to name a few. When there’s a big enough buzz about certain sectors, financial product manufacturers see this as demand and will crank out whatever’s necessary to satisfy that demand.... Read more