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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
NGL ENERGY PARTNERS LP 14.78   5.9 2.50 1.56 10.55
EQT MIDSTREAM PARTNERS LP 45.75   15.8 2.90 4.58 9.93
MPLX LP 31.35   13.6 2.30 2.63 8.38
MAGELLAN MIDSTREAM PARTNERS 61.82   10.6 5.82 4.02 6.52
ENTERPRISE PRODUCTS 28.59   13.8 2.07 1.75 6.05
PLAINS ALL AM. PIPELINE 24.02   6.8 3.52 1.44 5.91
TRANSCANADA 48.39   15.2 3.19 2.24 4.61


Older articles featuring Ngl Energy Partners Lp (NGL):
Are Top Yields In Energy Preferred Stocks Too High?
Low Yield Vs. High Yield Preferred Stocks. Is The Spread Wider Than You Thought?
8% To 9% Yields, More Growth Ahead In 2019: DCP Midstream Partners LP
AMZA Part 2: Strong Dividend Coverage And Growth Potential Seen
March Magic 10%-Plus Yield Dividend WallStars Flaunt Gains, Yields And Prices
69 February 10%+ Dividend Yield WallStars Have Heart
101 End-O-December 10%+ Yield Dividend WallStars Toast Tremendous Target Gains And A Merger
Record Earnings, 9%-11% Yields, 6X Coverage, Insider Buying, Analyst Upgrades: DCP Midstream
94 Mid-December 10%+ Yield Dividend WallStars Enjoy Jolly Target Gains
81 Pre-December 10%+ Yield Dividend WallStars Boast Bullish Target Gains