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Yield hungry investors playing in the MLP space may take caution as the sector's merits rate a...

  • Monday, August 20, 2012, 3:56 PM ET
    Yield hungry investors playing in the MLP space may take caution as the sector's merits rate a Barron's cover and investor roundtable discussion. Among the selections is the popular JPMorgan Alerian MLP Index ETN (AMJ), up 17% Y/Y while yielding north of 9%, and trading at a 36% premium to NAV.
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This news story has 6 comments:

  • Much better to cherry pick individual MLPs
    20 Aug 2012, 03:58 PM Reply Like
  • the MLP etfs allow you to buy the industry. It can reduce yield a bit, but it also decreases volatility. I think that a 6+% dividend is quite nice to boot.
    20 Aug 2012, 04:28 PM Reply Like
  • 36% premium? Is that accurate? Doesn't appear so according to Bloomberg.
    20 Aug 2012, 05:56 PM Reply Like
  • It's not hard to find MLPs that do well as a
    dividend play. Some MLPs have also shown the
    ability to grow.
    I prefer to stick to one stock at a time, rather
    than buying 'soup to nuts' ETFs.
    Be your own judge, as you can easily loose money
    either way, and you can also make money, if you pay
    attention to the details.
    snow
    21 Aug 2012, 07:40 AM Reply Like
  • AMJ is up only 3% this year, the net asset value is within 1 cent of the close yesterday and the dividend yields 4.96%????!!!!!.
    21 Aug 2012, 03:33 PM Reply Like
  • I have been investing in MLP stocks since 2007. Through the financial crisis these stocks did suffer losses but their distributions limited that. Kinder Morgan Partners, Linn Energy and Enterprise Energy Partners are my prime investments in this area and have greatly appreciated in value and increased distributions regularly over this period of time. In addition these are a tax advantaged investments.
    22 Aug 2012, 03:41 PM Reply Like
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