REITs Vs. MLPs Vs. BDCs: Comparing 3 High Yield Income Vehicles

Nov. 15, 2023 8:05 AM ET, , , , , , , , 144 Comments

Summary

  • REITs, MLPs, and BDCs are very popular among income investors.
  • Each has unique pros and cons.
  • Overall, REITs are likely the most opportunistic today. Here's why.
  • High Yield Investor members get exclusive access to our real-world portfolio. See all our investments here »

High Yield, Low Risk Road Sign

JamesBrey

Co-produced by Austin Rogers

Three investment vehicles are particularly popular among income investors:

  • Real estate investment trusts ("REITs")
  • Master limited partnerships ("MLPs")
  • Business development companies ("BDCs")

Each is designed to pay out as much earnings as possible while

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This article was written by

27.25K Followers

Samuel Smith has a diverse background that includes being lead analyst and Vice President at several highly regarded dividend stock research firms and running his own dividend investing YouTube channel. He is a Professional Engineer and Project Management Professional and holds a B.S. in Civil Engineering & Mathematics from the United States Military Academy at West Point and has a Masters in Engineering with a focus on applied mathematics and machine learning. Samuel leads the High Yield Investor investing group. Samuel teams up with Jussi Askola and Paul R. Drake where they focus on finding the right balance between safety, growth, yield, and value. High Yield Investor offers real-money core, retirement, and international portfolios. The services also features regular trade alerts, educational content, and an active chat room of like minded investors.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of EPD either through stock ownership, options, or other derivatives. 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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