Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



3 Reasons to Shy Away From Buckeye Partners for Now

By most accounts, nobody would fault you for buying shares in Buckeye Partners (NYSE: BPL  ) . After all, there aren't many master limited partnerships out there with the stability of an investment-grade rating behind it. If you want to get nit-picky, though, there are a few issues that you might want to think twice before going all in on this company today.

One of them is the fact that its distribution coverage ratio has not been at the most comforting levels in recent history. Despite the fact that it has a relatively similar business model to Magellan Midstream Partners (NYSE: MMP  ) , Magellan has a pretty comfortable cushion of cash flow that more than covers its distributions, while Buckeye has seen its coverage slip below its distribution a couple times. 

Find out some other reasons why Buckeye Partners may not be your best investment in the master limited partnership space by tuning into the video below.

Do Buckeye, Magellan, or Enterprise make our list of top stocks?
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. Find out if Buckeye Partners, Magellan Midstream Partners, or Enterprise Products Partners made the list in our free report by simply clicking here.

Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3033022, ~/Articles/ArticleHandler.aspx, 9/3/2015 11:58:45 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Tyler Crowe

Energy and materials columnist for

Today's Market

updated 2 hours ago Sponsored by:
DOW 16,374.76 23.38 0.14%
S&P 500 1,951.13 2.27 0.12%
NASD 4,733.50 -16.48 -0.35%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/3/2015 4:01 PM
BPL $70.07 Up +0.21 +0.30%
Buckeye Partners,… CAPS Rating: *****
EPD $27.38 Down -0.32 -1.16%
Enterprise Product… CAPS Rating: *****
MMP $70.19 Down -0.20 -0.28%
Magellan Midstream… CAPS Rating: *****