Albert Alfonso
Dividend investing, dividend growth investing, master limited partnerships, oil & gas

Is Enbridge's MLP Facing A Funding Crisis?

One of the cheapest midstream stocks out there is Enbridge Energy Management (NYSE:EEQ). The company has a unique structure in which it pays out its dividend in the form of additional shares instead of cash. The stock dividends are of a similar value to the cash distributions paid out by the MLP Enbridge Energy Partners (NYSE:EEP). These stock dividends result in Enbridge Management's stock being substantially more IRA friendly than units in the MLP. The current yield for Enbridge Management is about 7.20%.

(click to enlarge)

Ownership Structure

Enbridge Management is a limited liability company that was formed to manage and control the business and affairs of Enbridge Partners. Enbridge Management's only assets are its 16.6%...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details