With such a broad range of MLPs out there right now, investors have many options. Distributions from these companies are vital to shareholders' total returns. This key fact is why the stability of the long-term, fee-based contracts of the midstream MLPs are a great place for investors to focus.
Take this long-term revenue stream and compare it to that of MLPs that produce oil and natural gas, and its clear that distribution growth and stability should be much more reliable at a midstream company like Kinder Morgan Energy Partners (UNKNOWN: KMP.DL ) . Risk is also reduced because expected production from wells is not always guaranteed.
If KMP doesn't fit your investment profile, perhaps its general partner will
It's easy to forget the necessity of midstream operators that seamlessly transport oil and gas throughout the United States. Kinder Morgan is one of these operators, and one that investors should commit to memory due to its sheer size – it's the third-largest energy company in the U.S. – not to mention its enormous potential for profits. In The Motley Fool's premium research report on Kinder Morgan, we break down the company's growing opportunity – as well as the risks to watch out for – in order to uncover whether it's a buy or a sell. To determine whether this dividend giant is right for your portfolio, simply click here now to claim your copy of this invaluable investor's resource.