Teak

People Still Have To Spend: Eleven Dividends for Even Conservative Investors

On Oct 25 06:03 PM Emerald wrote:

> MLP's should hold up well. I don't see activity in shipments of gas
> and oil declining to a point where pricing deteriorates. Most firms
> have multi year contracts. They need access to capital to expand
> but can hold the line for the near future in a weak economy. Long:
> EPD, TPP, KMP, LINE, BBEP, NGLS.

What would be better: investing in a MLP (such as Enbridge Energy Partners, EEP) or in a company which is a major shareholder in the MLP (e.g., Enbridge, ENB, with a 27% stake). The financials on EEP don't look all that good right now, but those of the major shareholder (ENB) look much better.

Don't MLPs basically have to sell off parts of themselves to keep up the dividend payments? EEP has a dividend payout ratio of 125% now, which doesn't look good to my conservative eyes.