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.
The Motley Fool recommends Enterprise Products Partners L.P. and Kinder Morgan. The Motley Fool owns shares of Kinder Morgan. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.