7 Large MLPs That Yield Over 5%: Recent Performance and Distribution Growth

A Master Limited Partnership (“MLP”) is a type of partnership that is publicly traded on a securities exchange. MLPs combine the tax structure of limited partnerships with the liquidity of publicly traded securities, where most private partnerships are relatively illiquid when compared to the public equity markets. MLPs usually provide their investors, the limited partners, with distributions. Most MLPs are publicly traded oil & gas pipeline businesses that earn stable income from the transport of oil, gasoline and/or natural gas. Many derive their revenue based on the amount of product transported and are not sensitive to price fluctuations except where they affect demand. Some MLPs involve other natural resources, and certain other industries, but oil & gas are the most common. Many investors appreciate MLPs for their relatively high yield that is based upon exposure to U.S. oil & gas consumption. In the current low yield environment, the yield MLPs... Read more