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RBC suggests high-yielding MLPs that can outperform for rest of 2014

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Comments (19)
  • smadadet
    , contributor
    Comments (55) | Send Message
     
    what's an MLP?
    15 Jul 2014, 10:42 AM Reply Like
  • wigit5
    , contributor
    Comments (4222) | Send Message
     
    Master Limited Partnership: They have different structures and tax rules. Please contact your CPA or look up the differences. Their are many websites that help walk you through it.
    15 Jul 2014, 10:43 AM Reply Like
  • Stock Market Mike
    , contributor
    Comments (2636) | Send Message
     
    Many of them are set up so that you pay little or no taxes on distributions/dividends, at least until you sell part of your holdings. The distributions affect your adjusted cost base, until it hits zero - and then you pay tax. Tax rules are murky with MLPs - there's some weird caveats that discourage partial selling, so contact your tax advisor.

     

    They tend to yield 10-12.5% right now. Some people use them as income generating hold-forever investments.

     

    -Mike
    15 Jul 2014, 11:58 AM Reply Like
  • DividendInvestorLA
    , contributor
    Comments (3643) | Send Message
     
    I'll just share my tax experience this year. Some (most) of my income from MLPs was not "taxable" per se, although from what I understand it became part of the capital gains I had last year. Since I also (sadly) had capital losses to offset them, I had less taxable income this year than I actually received (at least that's what TurboTax said...)

     

    I do "partial selling" all the time and didn't notice the consequences. Then again, I'm in MLPs for the great investment and distribution, not for the tax break as sadly I don't make enough that taxes are really an issue to me. If you're a lot richer than me,m it may be one.
    15 Jul 2014, 12:45 PM Reply Like
  • efactor
    , contributor
    Comments (457) | Send Message
     
    smadadet, here you go: http://bit.ly/1ki7dYW
    16 Jul 2014, 02:01 AM Reply Like
  • Pablomike
    , contributor
    Comments (2631) | Send Message
     
    It would be more accurate to say MLPs yield 3-10% right now. Please list any that yield 12.5%. I can't think of one that looks sustainable.
    15 Jul 2014, 12:44 PM Reply Like
  • DividendInvestorLA
    , contributor
    Comments (3643) | Send Message
     
    HCLP used to yield 14%... of course now it yields only 4%... after a dividend increase that is!!!

     

    EMES had a similar story.

     

    A high dividend is not a sure sign of danger (unless it means you're in danger of making money!) ;)

     

    You have to look at each company separately and be aware there'll always be some "well-meaning" people telling you to "be careful", no matter what you do.
    15 Jul 2014, 07:11 PM Reply Like
  • ba37840
    , contributor
    Comments (162) | Send Message
     
    I have owned EEP since 2008, my basis is now 0, my distribution yield is now 100% in long term capital gains. Can't get better then that.
    18 Jul 2014, 11:32 AM Reply Like
  • w.sak
    , contributor
    Comments (142) | Send Message
     
    QRE, ROYT, CMO,NYMT,LRE, PSEC, are about all in that ballpark.
    15 Jul 2014, 04:32 PM Reply Like
  • arthur_bishop1972
    , contributor
    Comments (2871) | Send Message
     
    PSEC is a BDC-not MLP.
    15 Jul 2014, 11:36 PM Reply Like
  • w.sak
    , contributor
    Comments (142) | Send Message
     
    thank you.
    I just off the top, mentioned stocks that have near to 12 %.
    You are allowed to check on any of them or not.
    And, also P-SEC has been good to me monthly, & I doubt that I'll be selling it any time soon.
    16 Jul 2014, 09:39 AM Reply Like
  • Pablomike
    , contributor
    Comments (2631) | Send Message
     
    ROYT is a trust not MLP. CMO and NYMT are REITs not MLP. PSEC is a BDC not MLP. QRE yields 10.6%. LRE, at 13%, is the only MLP yielding 12.5% or better.
    16 Jul 2014, 05:52 PM Reply Like
  • w.sak
    , contributor
    Comments (142) | Send Message
     
    I was throwing out some 10 + % stocks that have worked, it was not just for you.
    I suggest, if you know what your looking for good luck!
    NYMT, I know it's a REIT, in the short time I had it, with it's 13 +% & price rise looks like I'll be doubling up on it real soon without future investments. I look for stocks that look consistent, whether they're MLP BDC etc.
    17 Jul 2014, 10:41 AM Reply Like
  • Lou7309
    , contributor
    Comments (2) | Send Message
     
    The taxes on MLPs are complicated, and neither turbotax nor block software are up to the task. You can use either, but you need to learn the tax laws that apply to be sure you file correctly. Otherwise use a CPA.
    15 Jul 2014, 11:06 PM Reply Like
  • wigit5
    , contributor
    Comments (4222) | Send Message
     
    Uh TurboTax has an entire section dedicated to MLP distributions/gains etc...
    16 Jul 2014, 09:18 AM Reply Like
  • ba37840
    , contributor
    Comments (162) | Send Message
     
    I use TaxACT, cheaper then Turbo Tax, or a CPA, and handles K-1s with no problems.
    18 Jul 2014, 11:36 AM Reply Like
  • DividendInvestorLA
    , contributor
    Comments (3643) | Send Message
     
    Thanks for the recommendation. I always like to have another option at tax time.
    18 Jul 2014, 01:29 PM Reply Like
  • efactor
    , contributor
    Comments (457) | Send Message
     
    For all but the wealthy no tax implications holding MLP's in retirement accounts: http://bit.ly/19WxQhu
    16 Jul 2014, 02:28 AM Reply Like
  • NormanSeg
    , contributor
    Comments (9) | Send Message
     
    Does any one know how MLP taxation is handled for non US citizens owning these shares. There is the standard witholding tax of 25% on dividends/distributions; does this cover all US liabilities? The solution to this unknown is to invest in MLPs through an ETF/ETN.
    17 Jul 2014, 06:05 AM Reply Like
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