The master limited partnerships Linn Energy (NASDAQ:LINE) and Vanguard Natural Resources (NASDAQ:VNR) both reported distribution coverage ratios of less than 1.0 in their recent earnings reports, which could be concerning. Linn's was at .993 and Vanguard's was .83; both need to be at 1.0 or higher for distribution to be sustainable.

But as Fool contributor Tyler Crowe and energy and materials analyst Joel South discuss in this video, earnings reports don't tell the whole story with MLPs. Here, cash is king, as well as distribution coverage, and Joel and Tyler break down whether Linn and Vanguard investors have anything to worry about regarding either of those things going forward.

Did LINN's or Vanguard's massive distribution payments make our list of top dividend 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 LINN or Vanguard made the cut in this free report by simply clicking here now.

 Video segment starts at 9:44  

Joel South has no position in any stocks mentioned. Tyler Crowe owns shares of Linn Energy, LLC. You can follow them on Twitter @TMFEnergy and @TylerCroweFool, respectively.

The Motley Fool has no position in any of the stocks mentioned. 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.

Compare Brokers