Recent Performance Review Of 5 High-Yield Small-Cap MLPs
By Zvi Bar:
An 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. Usually, private partnerships are relatively illiquid compared with public equities. Most MLPs are publicly traded oil and gas pipeline businesses that earn stable income from the transport of oil, gasoline and/or natural gas.
Many MLPs 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 and gas are the most common sectors. MLPs usually provide their investors, the limited partners, with distributions similar to dividends, but which are often taxed differently. MLP tax issues can make them unsuitable for IRAs and similar retirement accounts.
Below are five small-cap MLPs that currently yield over 8%, as wellComplete Story »
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