Enterprise Products Partners L.P.
Shares of master limited partnership (MLP) stocks can be some of the strongest dividend-paying securities available to investors. These securities typically feature a high level of income while offering investors some attractive tax advantages. Being incorporated as limited partnerships, they do not face double taxation; MLPs are subject to no taxes at the corporate level.
ONEOK (NYSE: OKE) is spinning off its natural gas utility assets to become just the general partner (GP) of limited partnership ONEOK Partners (NYSE: OKS). That's good for ONEOK shareholders, but doesn't do much to help ONEOK Partners unit holders.
Lots of Partners
Limited partnerships (LPs) usually have general partners (GPs) that run them. The GP handles the day to day tasks, while the limited partners put up more »
Note: This article has been amended to correct Enterprise Products Partners dividend yield.
A 0% interest rate environment has created a crowd of hungry-for-yield investors. With rates so low, you have two options -- either stash your money in CDs earning close to nothing, or invest in highly speculative investments. Well, now there's also a third way: invest your money in financial vehicles called MLPs.
These partnerships will reward you more »
They say good things come in small packages. Regarding US oil pipeline companies, this could very well be true. While large midstream companies like Enterprise Products Partners (NYSE: EPD) and Plains All American Pipeline (NYSE: PAA) returned great results to their investors, a relatively small company has beaten both in terms of capital gains and distribution growth.
To be sure, Enterprise and Plains boast attractive returns. According to the chart more »
High yielding master limited partnerships are some of the most attractive investments for dividend investors. These partnerships pay out heavy cash distributions and attract investors who want to have a regular stream of income. However, the prospect of regular income is not the sole characteristic of these MLPs. Some of these partnerships have shown considerable price appreciation.
While the Bakken and Eagle Ford shale oil plays understandably attract the spotlight in the world of new oil production, a lesser known play in Colorado may soon make its presence felt. The Niobrara in northeastern Colorado (see map below) may contain more than 7 billion barrels of recoverable oil. Let’s look at three companies investing in this play.
Map courtesy of FrackingOil.com
Classic exploration and development
Two more »
Acquisition seems to be becoming the norm in the financial world to achieve quicker growth. It is a costly way to expand. But buying a business that is ongoing reduces risk of failure .
Is it still a good investment?
Benefits of more »
The IPO I have been waiting for has finally arrived. I first drew attention to it in mid-May when I recommended investors build cash and wait. The market correction I hinted at did happen, but was minuscule, and now the S&P 500 resides about 5% higher. MLPs haven’t fared as well and remain unchanged on a total return basis, but got whip-sawed with the volatile movements in the more »
The early July explosion of train cars carrying crude oil in Canada quickly turned into a disaster. It also exposed the risks of the increasing use of trains to transport oil. Although pipelines have their own risks, the fallout from this event will help support growth at pipeline giants like Enterprise Products Partners (NYSE: EPD), Kinder Morgan (NYSE: KMP), and TransCanada (NYSE: TRP).
Oil and natural gas drilling more »
For years now, US and Canadian oil and natural gas production not only helped reduce oil imports to the US, but also rewarded their investors. For all the headlines trumpeting increased production, not all energy companies benefit shareholders. Let’s look at three energy companies with different risk and reward profiles.
A trailblazing North American energy transportation and distribution company, Enbridge (NYSE: ENB), has been trounced year to date, declining 4.99% compared to the 12.42% return offered by the blue chip average.
Enbridge transports and distributes energy across the United States and Canada. Operating a crude oil and liquids transportation system, Enbridge is additionally operating in the natural gas transmission and midstream businesses. Liquids pipelines, gas distribution, gas pipelines more »
The midstream arm of Anadarko Petroleum, Western Gas Partners (NYSE: WES) and midstream energy firm Enterprise Products Partners (NYSE: EPD) have formed a joint venture for two natural gas liquid, or NGL, fraction trains. Both of these energy infrastructure firms will become bigger and better in the coming years on the back of the U.S. oil and gas boom. Although I am bullish on these two firms, Enterprise Products more »
Dividend payments, a way to distribute cash to the shareholders, indicates the strength of a company's free cash flow position. Historically, high dividend-paying stocks have outperformed the overall stock market in times of uncertainty. In the U.S, high-dividend paying stocks have provided an additional return of almost 5% annually as compared to stocks paying no dividend.
In this article, I have analyzed three companies that had paid higher more »
One of the largest independent US pipeline carriers of refined petroleum products, Buckeye Partners LP (NYSE: BPL) has vastly outperformed the overall market in 2013, rising 46.66% year to date compared to the 12.93% return offered by the blue chip average.
Buckeye is one of the largest independent US pipeline carriers of refined petroleum products, with over 6,000 miles of pipelines. Based on market capitalization, the company more »
The energy sector has not been immune to the economy’s downturn, but it still has areas of growth that show considerable promise. In this sector, there are still plenty of opportunities for investment and income. In this piece, I pick a few promising MLPs from the energy sector. These MLPs offer regularly increasing distributions. These are Enterprise Products Partners (NYSE: EPD), BreitBurn Energy Partners (NASDAQ: BBEP) and Plains All more »
Even with the recent uptick in long-term bond prices, yields are still puny, and income investors are hard-pressed to find quality companies that are even keeping up with the rate of inflation, let alone generating income above that level.
The S&P 500 has generated a dividend yield of around 2% over the last decade, and it doesn’t look like that will be increasing any time soon.
However, it more »
Please be sure to read Part One before you read this part. In it, I discuss the very real possibility that a retiree, if his money is invested in a tax-deferred account such as a traditional IRA or a 401(k), may be forced to withdraw more from his account than the recommended 4%.
So you find yourself in the somewhat enviable position of being required to withdraw more annually more »
It’s a good strategy to invest in income growth companies, sit back, and reap the rewards. But to beat inflation, investing in high yielding, yet stable companies is important. And this is exactly where companies with an MLP (Master Liability Partnerships) status roll in.
MLPs are generally oil and gas companies that generate consistent cash flows. They distribute the bulk of their cash generated and don’t have to more »
Kinder Morgan Energy Partners (NYSE: KMP) is the largest U.S. pipeline company and, in its latest quarter, saw net income increase three times to $783 million from $206 million on a year-to-year basis. The company is deriving incremental benefits from its pipeline system with its recent purchase of Tennessee Gas Pipeline and the partial acquisition of El Paso Natural Gas Co. For the future, Kinder Morgan has entered into more »
Two weeks ago, when commenting on both the newest Powerball millionaire ($590 million, still unclaimed as of this writing) and David Karp’s sale of Tumblr to Yahoo!, Jim Cramer noted that when one has that kind of money, investment goals can be substantially different than those for ordinary people.
People who are that rich don’t need to invest for growth – merely for preservation. They don’t need to more »
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