MWVotruba
In a previous article we already made the case for MLPs in general and the ALPS Alerian MLP ETF (AMLP) in particular. Today we take a look at the InfraCap MLP ETF (NYSEARCA:AMZA). While
AMZA: 8.6% Yield For This Actively Managed And Slightly Leveraged MLP ETF
Summary
- MLPs' strong free cash flow generation leads to nice dividends, buybacks and debt reductions.
- This translates into a very low risk of dividend cuts and hence a positive backdrop for a continued MLP bull market.
- AMZA is a leveraged bet on this trend.
- Its actively managed portfolio yields 8.6%.
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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in AMZA over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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