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Master Limited Partnerships (MLPs) provide investors income-generating assets with strong secular industry tailwinds. MLPs provide stable yields and are often times higher than those of common stocks. In a highly correlated, "risk-on risk-off" world, MLPs provide access to asset classes that is less correlated to stocks and bonds. MLPs have only modest direct commodity sensitivity, as the Company's business model is derived from fee-based contracts that are largely insensitive to commodity price fluctuations.

MLPs are a limited partnership that is publicly traded on a securities exchange. MLPs combines the tax benefits of a limited partnership with the liquidity of publicly traded securities. MLPs provide access to a low beta asset class with rich dividend yields.

MLP Screen Criteria:

  • Market Capitalization greater than $3.5 billion
  • Beta is below 1.0
  • Dividend Yield greater than 4.0%

Kinder Morgan Energy Partners LP (KMP)

Market Capitalization: $27.7 billion

Beta: 0.38

Dividend Yield: 5.6%

EV / EBITDA: 14.2x

El Paso Pipeline Partners, L.P. (EPB)

Market Capitalization: $7.2 billion

Beta: 0.21

Dividend Yield: 5.6%

EV / EBITDA: 9.3x

ONEOK Partners, L.P. (OKS)

Market Capitalization: $11.2 billion

Beta: 0.43

Dividend Yield: 4.3%

EV / EBITDA: 14.0x

Regency Energy Partners LP (RGP)

Market Capitalization: $3.9 billion

Beta: 0.81

Dividend Yield: 7.4%

EV / EBITDA: 18.4x

Magellan Midstream Partners LP (MMP)

Market Capitalization: $7.3 billion

Beta: 0.34

Dividend Yield: 4.9%

EV / EBITDA: 15.0x

Boardwalk Pipeline Partners, LP (BWP)

Market Capitalization: $5.5 billion

Beta: 0.21

Dividend Yield: 7.7%

EV / EBITDA: 13.3x

Source: 6 MLPs For Income Focused Investors