mplaut

High Yield Securities Need to Refresh

Even at $20 LINE is yielding over 12%.

It is impossible to know what will happen in the next few months, but over the long run LINE looks as good as ever. The next distribution payment is in August, so you might want to wait and hope for a pullback, but then again it may go higher by then.

LINE is good value at $20 and that is the best way to look at it, but if you want to check the prices daily, then, as tc1 says, it may be a bit overbought.

MLPs in 2009: Fundamentals Remain Strong

In addition to MLPs that move oil and gas, there is another whole class called Exploration and Production MLPs that actually produce oil and gas. They are also distribution oriented, and seek mature, low depletion properties that produce steadily. Many have decades worth of reserves. When you add the fact that they hedge their future production for years ahead, you get very solid, income producing companies. With yields north of 15%, there are certainly few if any other investments that promise such high and steady gains.

In the markets over the next few years, it is going to be hard to make significant money from capital gains. You may not make a "killing" from income stocks, but you will be amply rewarded.

Disclosure: long LINE