Will Janet Yellen’s Decision Ruin Your MLP Investments?

Earlier this week, Federal Reserve Chair Janet Yellen announced that the central bank will scale back its bond-buying program yet again, this time down to $55 billion a month. Whenever this happens, it seems to send investors in master limited partnerships toward the exits. Ever since the Fed hinted at the idea of tapering off its bond-buying program back in May, the Alerian MLP Index (NYSEMKT: AMLP  ) has gained a measly 2%. While increasing yields on U.S. Treasuries and other bonds can make master limited partnerships less attractive, don't let it completely lure you away from MLPs like Enterprise Products Partners (NYSE: EPD  ) and Kinder Morgan Energy Partners (NYSE: KMP  ) .

Not only have these companies soundly beat any return on Treasury bonds in the past 10 years, both have more than doubled the S&P 500 on a total return basis over the same time period. To find out a couple reasons why these companies have been able to perform so well over the years regardless of any decision from the Federal Reserve, tune into the video below.

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One of the dirty secrets that few finance professionals will openly admit is the fact that dividend stocks as a group handily outperform their non-dividend paying brethren. The reasons for this are too numerous to list here, but you can rest assured that it's true. However, knowing this is only half the battle. The other half is identifying which dividend stocks in particular are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. Find out if Enterprise Products Partners of Kinder Morgan were worthy enough to make our list of stocks instantly and for free, all you have to do is click here now.


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  • Report this Comment On March 20, 2014, at 2:28 PM, toomuchgas wrote:

    She did not signal raising rate. She just signaled tapering is to continue. After rates hit zero the additional purchases really didn't have much economic effect.

  • Report this Comment On March 20, 2014, at 3:06 PM, EugeneSpud wrote:

    Another article hashing over old news. Yellen did not say anything new about interest rates. And she certainly didn't do something new in lowering bond purchases. These have both been carefully announced in the news by the Fed and they are just doing what they told us they would. So it makes this just another foolish article amid at you guys selling something else.

  • Report this Comment On March 20, 2014, at 5:56 PM, ferdiefor wrote:

    MLPs still raising their distributions quarterly is superior to a fixed rate at these low rates. Until bank rates paid on money is much higher investors will stay the course they are on.

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