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10 Fairly Valued MLPs: Are The High Yields Worth The Risk And Effort? Part 12

Published Thu, 28 Mar 2019 15:47:14 -0400 on Seeking Alpha

A major goal of this series on sectors is to illustrate the reality that it is a market of stocks rather than a stock market. With this article I am technically covering the Industrial Services Sector. However, all the research candidates I will be presenting come from the Oil & Gas Pipelines subsector. There is probably no better example illustrating how different companies are from each other than an examination of the unique attributes of oil and gas pipeline companies.
For starters, there are important tax considerations to be considered when investing in MLPs. These entities issue a K-1 that must be included in the investor’s tax filing. This factor alone deters many investors from investing in MLPs. On the other hand, there are tax advantages associated with investing in them that are worth the aggravation of the K-1’s for other investors. However, it is not the objective of this article to delve deeply into the intricacies of the tax advantages or complications of investing in MLPs. Instead, they are offered as research candidates that provide high tax advantaged yields that I also consider attractively valued currently. Although I do feel that it is appropriate that I mention these issues in this article, I leave it up to the individual investor to do their own due diligence.
There is an additional attribute that is common to MLPs that I believe is not discussed anywhere near enough. MLPs are very capital-intensive entities that require large... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
EQT MIDSTREAM PARTNERS LP 29.80   12.3 2.43 4.64 15.45
NGL ENERGY PARTNERS LP 12.93   5.0 2.57 1.56 12.04
MPLX LP 28.61   12.4 2.30 2.67 9.28
PLAINS ALL AM. PIPELINE 21.20   5.3 3.99 1.44 6.75
MAGELLAN MIDSTREAM PARTNERS 65.61   11.0 5.99 4.05 6.20
ENTERPRISE PRODUCTS 28.68   12.4 2.31 1.76 6.13
TRANSCANADA 49.89   14.6 3.42 2.25 3.14


Older articles featuring Eqt Midstream Partners Lp (EQM):
Dividends By The Numbers In April 2020
Dividend Champions For April 2020
Dividend Challenger Highlights: Week Of February 9
Building An Energy Based High Yield Retirement Portfolio - Starting With Coronavirus Fears
2020 Vision: What's The Outlook For Midstream/MLP Dividends This Year?
55 5-9 Year Top Dividend Payback Challenger Dogs
Dividend Challenger Highlights: Week Of January 26
Dividend Challenger Highlights: Week Of November 10
Dividend Challenger Highlights: Week Of October 27
100-Stock Dividend Portfolio Update For August 2019