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The largest 20 dividend paying MLPs in the Alerian MLP index have a wide range of ratings for near term total return from Very Bullish to Very Bearish, according to the Thompson Reuters StarMine rating system.

Only five of the 20 MLPs have a Bullish or Very Bullish ratings (score of 7.1 or more).

NameSymbolSM Rating
Targa Resources Partners LPNGLS9.4
Enterprise Products Partners LPEPD9.0
Plains All American Pipeline LPPAA8.5
Sunoco Logistics Partners LPSXL8.2
Genesis Energy LPGEL7.3
Kinder Morgan Energy Partners LPKMP6.7
Western Gas Partners LPWES6.2
Magellan Midstream Partners LPMMP6.1
ONEOK Partners LPOKS5.6
MarkWest Energy Partners LPMWE4.5
NuStar Energy LPNS3.2
Energy Transfer Equity LPETE3.1
Williams Partners LPWPZ2.7
Regency Energy Partners LPRGP2.6
Buckeye Partners LPBPL2.3
Enbridge Energy Partners LPEEP2.2
El Paso Pipeline Partners LPEPB1.5
Energy Transfer Partners LPETP1.2
Boardwalk Pipeline Partners LPBWP1.0
Copano Energy LLCCPNO0.7

Thompson Reuters StarMine Ratings:

The system uses a 10 point scale:

  • Ratings from 3 through 7 are various levels of Neutral.
  • Ratings between 1 and less than 3 are Bearish.
  • Ratings below 1 are Very Bearish.
  • Ratings greater than 7 through 9 are Bullish.
  • Ratings greater than 9 are Very Bullish.

Further explanation of the StarMine system is available on our blog.

Relative Performance Vs. Alerian MLP Index ETN:

Consistent with the StarMine ratings, each of the five MLPs have a one year percentage performance ahead of AMJ, the ETN based on the full Alerian MLP index.

Perhaps heavily influenced by the chart trends as much as anything else, analyst ratings generally (but not exactly) correspond with the performance in the past year relative to AMJ (representing the overall index).

Disclosure: QVM has positions in AMJ as of the creation date of this article (May 2, 2012).

General Disclaimer: This article provides opinions and information, but does not contain recommendations or personal investment advice to any specific person for any particular purpose. Do your own research or obtain suitable personal advice. You are responsible for your own investment decisions. This article is presented subject to our full disclaimer found on the QVM site available here.

Source: 20 Largest Pipeline MLPs: Ratings From Very Bullish To Strong Sell From Thompson Reuters 'Star Mine'