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Which MLPs Should Investors Choose From the Herd?

By Taylor Muckerman and Joel South - Apr 3, 2013 at 1:37PM

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Master limited partnerships have been cropping up in a host of industries. Which ones should investors focus on?

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.

Heightened visibility
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 (NYSE: KMP). Risk is also reduced because expected production from wells is not always guaranteed. 

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Stocks Mentioned

Enterprise Products Partners L.P. Stock Quote
Enterprise Products Partners L.P.
EPD
$26.80 (1.28%) $0.34
Natural Resource Partners L.P. Stock Quote
Natural Resource Partners L.P.
NRP
$48.24 (0.71%) $0.34
Breitburn Energy Partners LP Stock Quote
Breitburn Energy Partners LP
BBEPQ

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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