Master Limited Partnerships can be a fantastic source of income for the dividend-loving investor. The 5 outlined below all represent good buys now.
Martin Midstream Partners LP (MMLP)
MMLP is a company dealing in the transportation of oiland natural gas across the United States, through networks of pipeline, which they operate. In the current year MMLP’s share have been hovering in the range of $37-$42.
MMLP entices investors with its high dividend yield. MMLP has a dividend yield of 7.82% at the time of writing and over the past 5 years its dividend yield has averaged 9.74%.MMLP’s EPS is $0.90 at the time of writing and has grown its EPS at an average of 42% approximately over the last 5 years.
There has been constant insider buying of MMLP shares over the last few months. During the same period of heavy insider buying share prices of MMLP have been moving upwards. Income Investors looking for high yielding instruments should make a note of these transactions.
Kinder Morgan Management (NYSE:KMR)
KMP is one of the largest energy transportation companies in America with approximately 37,000 miles of pipelines under its management. KMP has been busy expanding and upgrading its infrastructure. Kinder Morgan Management (NYSE:KMR) was formed for investment without tax hassle. Each share of KMR is backed by a unit of KMP.
KMR’s dividend yield is 7.3%, which at the same time has been 6.8% for KMP. KMP has been increasing its distribution since its inception in 1996. KMP has increased its distribution from $0.63 to $4.63 in 2011 (estimated) at a staggering growth rate of 14% annually compounded.
Enbridge Energy Management, L.P. (NYSE:EEQ)
EEQ is a publicly traded company that manages the operations of Enbridge Energy Partners, which is a master limited partnership, dealing in the oil and gas midstream business in the US.
Over the last 5 years annual average dividend yield is 8.29%. Over the last 17 years EEP has increased its distribution at compounded rate of 3.22% and the target distribution growth rate is between 3-5% till 2013
Plains All American Pipeline (NYSE:PAA)
As the name suggests PAA, is an American oil and gas transportation company. PAA’s share has been trading, in a very close band of $62-$64 since the beginning of the year.
PAA has a high dividend yield of 6.13% with an average of 7.19% over the past 5years. It has successfully managed to increase its dividend by 6.79% annually.
Energy Transfer Partners (NYSE:ETP)
Like most of the MLPs ETP too is in the business of transportation natural gas, though network of pipelines it has.
ETP has a 7.57% of dividend yield and has been increasing its dividend payments by approximately 7% annually during the last 5 years. ETP has average earnings yield of 5.39%
Over as can be seen from the table all these MLP’s have a yield greater then 30 yr treasury as well as S&P500. All of them are in a financially strong condition to meet their future commitments. With the demand for energy rising, these MLP’s will have keep on increasing their distribution in the year as they have been doing so far.
|Company||MMLP||KMR||EEQ||PAA||ETP||30 yr Treasury||S&P500|