Energy MLPs: Potential Source Of Big, Safe Dividends (And Three To Consider)

There are a plethora of E&P companies in energy. If you choose well, they grow over the long term. The big, slower growing ones even pay decent dividends. However, if you want really good dividends you have to choose the Limited Partnerships. These pay great dividends -- much more than a lot of bonds. The good or bad other factor is that their stock prices tend to go up and down with the price of energy. To me this is a good thing. It provides a hedge against inflation. Longer term the price of energy (oil, natural gas, coal, and uranium) is forecast to go up due to increasing demand, even without other inflation. If you are a longer term investor, you can buy the limited partnerships with nearly complete peace of mind. If energy prices rise over the longer term, the stock prices of the energy LP’s will tend... Read more