Let’s focus on less-popular securities to trade energies today: Master Limited Partnership (MLP). How do they work and how can they be profitable?
A good way to diversify the construction of your oil and gas investment portfolio is to use a variety of assets for balanced exposure to the energy sector and its industrial components.
What Is A Master Limited Partnership (MLP)?
To learn in detail what a MLP is, we invite you to read the following articles that already contain the necessary basic information you need to know before starting investing in them.
- Master Limited Partnership (MLP), Investopedia.com
- The Benefits of Master Limited Partnerships, Investopedia.com
Key Reason For Going Into Those Alternative Investments
The most important advantage is the high-income potential. Indeed, MLPs typically pay high yields to investors, mainly due to the fact that they do not pay corporate income taxes.
Stock Watchlist
In the first article about alternative investments, we started a watchlist with some major energy stocks. Today, let’s update it!
As usual, our stock-picks will be shared through this link to our dynamic watchlist (which will be included in the position from now on). It will be updated from time to time as we progress through our portfolio construction process.
Take a look below at a few examples of some indicative metrics:
Today we picked five oil and gas Master Limited Partnership (MLP) companies that are quoted on the U.S. exchange. Their revenues are as stated below:
Revenue (in billion U.S. dollars):
- Enterprise Products Partners LP (NYSE:EPD) $26.67B
- Energy Transfer Equity LP (NYSE:ET) $38.95B
- Magellan Midstream Partners LP (NYSE:MMP) $2.37B
- MPLX LP (NYSE:MPLX) $8.51B
- Plains All American Pipeline LP (NASDAQ:PAA) $23.59B
In summary, those alternative investments may present stable benefits and diversify your energy portfolio.