CT Programmer

MLPs Still Attractive After Recent Selloff

oldtrdr, you're absolutely right. My mistake. It is a trust. High dividends like the others, similar business, but not an MLP. Wasn't thinking.

MLPs Still Attractive After Recent Selloff

Oh, quick note... I promise this is it then I'm out of here. When looking at PGH, they kick out dividends monthly, not quarterly, so just looking at their dividend amount is misleading. It's currently at 23% annually based on today's price.

MLPs Still Attractive After Recent Selloff

Best bets for MLP's, or for anything? As for MLP's, I have EEP, OKS and PGH. I won't claim they're the best... just the ones I picked up for various reasons. I like OKS's significant exposure to gas, but last time I checked we still needed to move oil around. Today they just seem to keep going down and down. Timing of bottom-fishing aside, they are good companies at a good price with good dividends. Read some of Avi's prior articles regarding the tax-handling of MLP's within or without an IRA. It gets a little muddy within an IRA.

As for good buys in general... take your pick. Fertilizer companies, copper miners, gold (maybe), dry bulk shippers, gas and oil producers. They're all down significantly as if they're going out of business, yet they all have solid cash flows and last time I checked Asia was still running red-hot (and China just lowered its rates!!!). I personally put a lot of stock (no pun intended) in Jim Jubak's list on MSN and read him regularly.

As a side note, I love how the press is saying that EEP is down 18% today because of the 2.4m fine. That happened last fall, and I read about that fine last week. I guess knee-jerk reactions are on a delay ;-)

MLPs Still Attractive After Recent Selloff

"Crash" assumes that the event has finished. Judging by today, it ain't over. Most of these are down a good number of points, after a few weeks of general decline. Not sure what's going on. I think "good" stocks are being punished in this market because they are the best thing to sell. I read something today that said hedge funds have liquidated about 20% of their total assets in the last month. That's a lot of selling. Personally, anything that pays me a dividend, and has a fwd PE below the S&P norm of around 15, is a double-gimmie. You eventually get both the dividends and the appreciation. And these MLP's have lower taxes.

MLPs Still Attractive After Recent Selloff

You should add OKS to your list of tags. I agree that these are good plays right now in the crazy market. They have stable cash flows, regardless of the price of the commodity running through their pipes. Even though we're likely heading into a significant recession, these guys provide stable dividends for those who sit and wait, and the prices will return to normal eventually. However, I would have changed the article's title to "MLP's MORE attractive after recent selloff".

Attractive Outlook for MLPs Following September Lows

jamookey... I bought MOS today. When I first started watching them in January (just to pace YARIY which I owned at the time) , they were at $135. Now, they're at $42! This after they "disappointed" Wall Street by coming in a little short on earnings (God forbid you don't come in exactly at what these number crunchers think --- despite the fact that they all missed this huge financial mess and recession). Forget that Mosaic doubled their profits over last year. Forget that they have a fwd PE less than 3 (you'd think they were going into bankruptcy at that level). It's just knee-jerking. And I say "thank you" to whoever panicked and sold me their shares at such a lovely price.

Attractive Outlook for MLPs Following September Lows

We're in the midst of a panicked sell-off. No one thinks anything is making any money anymore, so they're pulling out and sitting on cash. These pipeline companies provide solid dividends while you wait, and their stock prices will come back up. Are we really using significantly less gas and oil? No. And it has to be shipped from point A to point B, just like it always has to, regardless of the price of the oil or gas itself. I find it ironic that on a day like today when lot's of good companies are down 10% or more, EEP is only down 1.5% --- and that's with getting hit with a hefty fine regarding the pipeline explosion last fall. I have noticed that OKS seems to be slipping more over the last few weeks than EEP has. Is there any news regarding them and possibly debt problems? Long EEP and OKS.

Why Buy MLPs?

Thanks for the info everyone. My line 20 of my K-1 is zero, but I had only held it for a month in 2007 (originally bought in Dec 2007) and hadn't received any dividends yet. Does the UBTI accumulate over the years, or is there a $1,000 limit per year for all your MLP's combined? Also, about how many years does it usually take before your cost basis falls to zero? And, if I'm reading all this correctly it sounds like if your cost basis goes to zero (even if in an IRA), when you actually sell you're on the hook for taxes on the full price when you sell, correct?

Why Buy MLPs?

What exactly do you mean by "making them friendly for ... retirement accounts"? I added both EEP and OKS in my IRA (a SIMPLE plan) last year. I did receive the K-1 come tax time, but since its in my retirement account there wouldn't be any taxes due anyway. Will there be issues down the road, maybe when I start withdrawing from it when I retire? I bought them at the time because they were good investments with a good dividend, even if I'm maybe not getting all the tax benefits.

Investing in ETFs to Accommodate Change

No hyperlink to the Forbes article.