mplaut

Kinder Morgan's Dividend Payout Rate Is Unsustainable

You cannot determine whether the distribution of a MLP is sustainable by looking at its payout ratio. You have to look at the free cash flow because straight profits can be whipsawed up or down.

KMP will have no problems sustaining its distribution.

LINE yields over 11% and will also be able to keep it up for the foreseeable future.

MLP distributions are also tax advantaged for the most part, but filing the return is more complicated.