Will These Dividend Monsters be Demolished by the Federal Reserve?

If interest rates were to rise, what would it mean for high-yielding master limited partnerships LINN Energy, Vanguard Natural Resources, or BreitBurn Energy Partners?

Tyler Crowe
Tyler Crowe
Jul 5, 2014 at 10:14AM
Energy, Materials, and Utilities

If you are invested in Master Limited Partnerships like LINN Energy (NASDAQOTH:LINEQ), Vanguard Natural Resources (NASDAQOTH:VNRSQ), or BreitBurn Energy Partners (NASDAQOTH:BBEPQ), it's highly unlikely that you abandon them just because interest rates are rising. There is likely no chance that you can get the type of yield from investment grade bonds or a similar investment. However, that doesn't mean that you should ignore interest rates, because they can have significant impact on how LINN, Vanguard, and BreitBurn can grow their business.

So with James Bullard, the president of the St. Louis Federal Reserve, hinting that interset rates could be on the rise in the near future as its bond buying program gets smaller and smaller, the future of these upstream MLPs might not look as promising. Find out how interest rates will impact these companies and whether LINN, Vanguard, or BreitBurn is the best suited to handle rising interest rates by tuning into the video below.