Master Limited Partnerships For Yield And Growth

Master limited partnerships dominated the list of consistent weekly dividend increases for a second consecutive week. Master limited partnerships are pass-through entities, which are mostly engaged in transportation, storage and distribution of oil and gas. MLPs are monopolies, which typically enjoy toll-booth type business models. MLP investors are called limited partners, and the shares are called units. MLPs are not taxed at the entity level, but at the individual unitholder level. The K-1 tax package details each individual partner's share of the partnership's income and expenditures from various sources. In addition, unitholders need to understand the difference between general and limited partners as well as tax implications for holding MLPs in tax deferred accounts. Last week I mentioned that MLPs seems like the perfect dividend growth stocks, given their high yields and distribution growth. They do have some risks however, including interest rate, regulatory and business risks. The master limited partnerships which raised distributions over the past week include: Sunoco Logistics Partners L.P. (SXL) engages in the transport, terminalling, and storage of refined products and crude oil, as well as the purchase and sale of crude oil in the United States. This master limited partnership increased quarterly distributions to $1.215/unit. Sunoco Logistics Partners is a dividend achiever has increased distributions for ten years in a row. Yield: 5.70% Enbridge Energy Partners, L.P. (EEP) owns and operates crude oil and liquid petroleum transportation and storage assets, as well as natural gas gathering, treating, processing, transmission, and marketing assets in the United States. This master limited partnership increased quarterly distributions to 53.25 cents/unit. Enbridge Energy Partners has increased distributions for five consecutive years. Yield: 7.30% Exterran Partners, L.P. (EXLP) provides natural gas contract operations services to customers in the United States. This master limited partnership increased quarterly distributions to 48.25 cents/unit.123... Read more