J.P. Morgan suggests five high-yielding MLP energy infrastructure stocks


Energy Infrastructure analysts at J.P. Morgan make the case that with commodity prices soaring, its top-rated high-yielding MLPs in the category are a solid bet in a choppy market.

NuStar Energy (NS) and Crestwood Midstream Partners (CMLP) pay distributions well in excess of 7%, Williams Partners (WPZ) and Regency Energy Partners (RGP) each pay ~7%, and Energy Transfer Partners (ETP) pays 6.8% after defying the recent market selloff to trade near 52-week highs.

Comments (7)
  • Brucejfern
    , contributor
    Comments (1691) | Send Message
     
    WPZ is being taken on a bad ride by its GP. WMB has sold noncore assets to most MLPs to WPZ and they have not worked out and are in fact tying up capital that otherwise could go to more productive ventures. Its no wonder WPZ has been dead money with no capital growth in over two years.

     

    The rest of JPMorgan's picks are higher yielding, slower growing MLPs. It didn't take much analysis for JPM to basically come up with 7% yielders that have far fewer growth opportunities than best of breed MLPs that yield less but provide more than the balance of their total return in capital growth.
    14 Apr 2014, 12:01 PM Reply Like
  • bullsbearspigs
    , contributor
    Comments (759) | Send Message
     
    and those best of breed companies are.........?
    19 Apr 2014, 08:29 PM Reply Like
  • User 353732
    , contributor
    Comments (5152) | Send Message
     
    CMLP has a high distribution but its stock has performed poorly leading to negligible or negative returns for investors over the past 6 months.
    High distributions do not, by themselves, make for attractive MLPS.
    It is the combination of capital appreciation and distribution yield that comprises total return, which is what investors seek.
    14 Apr 2014, 12:47 PM Reply Like
  • Pablomike
    , contributor
    Comments (4396) | Send Message
     
    I'm really familiar with 3 of these and they aren't anywhere near my top picks. When JP Morgan speaks I don't listen.
    14 Apr 2014, 09:52 PM Reply Like
  • bullsbearspigs
    , contributor
    Comments (759) | Send Message
     
    what are your top picks, curious? thanks....
    19 Apr 2014, 08:29 PM Reply Like
  • Pablomike
    , contributor
    Comments (4396) | Send Message
     
    Off the top of my head, in this category, maybe ETE. With the deals they made, RGP, SLX??, etc. and once their full IDRs come back they should do really well. Need to do my own DD here but I may buy ETE.
    I've owned NS and ETP and would have done better just throwing a dart at any other comparable MPL.
    20 Apr 2014, 11:33 AM Reply Like
  • jas_rogers
    , contributor
    Comments (52) | Send Message
     
    I was surprised by JP Morgan's picks, and I appreciate the comments above.
    15 Apr 2014, 08:08 AM Reply Like
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