Are MLPs a Good Choice for Conservative Dividend Investors?

The primary focus of this series on how to know when and why to buy a stock has thus far dealt primarily with traditional operating companies. In this fourth installment we will alter our focus as we look at master limited partnerships (MLPs).One of the big advantages that a publicly traded common stock has over a limited partnership is liquidity. Master limited partnerships (MLPs) offer the advantage of the liquidity of a common stock and the tax advantages of a limited partnership. Traded on the New York Stock Exchange, master limited partnerships only date back to the 1980s, as they are a product of the US Tax Reform Act of 1986 and the US Revenue Act of 1987. Their limited history and track record is a risk that conservative investors seeking yield should carefully consider.... Read more