As pass-through entities, master limited partnerships can't be evaluated the same way are favorite C-corporations are. In this video, Fool.com Aimee Duffy takes a look at the distribution coverage ratio, explaining what it is, why it matters, and what investors need to consider before they buy an MLP.
Fool contributor Aimee Duffy has no position in any stocks mentioned. Fool contributor Tyler Crowe has no position in any stocks mentioned. The Motley Fool recommends Alliance Resource Partners, L.P. and Magellan Midstream Partners, L.P.. 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.