What are MLPs? How do MLPs work? Master Limited Partnerships
MLP stands for Master Limited Partnership. MLPs are like REITs in the way they are structured for tax purposes. They pay no income tax, and instead pay out their income to their shareholders as dividends. To qualify as MLPs, they must generate 90% of their income from activities relating to real estate, natural resources (timber, mining, enery), or commodities. MLPs trade on the stock exchange just like shares of any other stock. One of the most popular MLP groups is pipelines. Below we list the leading MLP investments.
Pipeline MLPs
Here is a list of the major pipeline MLPs, and their stock ticker symbol.
Amerigas APU
Atlas Pipeline Partners APL
Crosstex Energy XTEX
Dorchester Minerals DMLP
Enery Transfer Partners ETP
Enterprise Products Partners EPD
Ferrellgas Partners FGP
Genesis Energy GEL
Gulfterra Energy Partners GTM
Holly Energy Partners HEP
Inergy NRGY
K-Sea Transportation KSP
Kaneb Pipe Line KPP
Kinder Morgan Energy Part. KMP
Magellan Midstream MMP
MarkWest Energy MWE
Martin Midstream MMLP
Northern Borders NBP
Pacific Energy PPX
Plains All Pipeline PAA
Star Gas SGU
Suburban Propane SPH
Sunoco Logistics SXL
TC Pipelines TCLP
TEPPCO Partners TPP
Valero VLI
Natural Resource MLPs
Alliance Resource Partners ARLP (coal)
Crown Pacific CRPP.OB (timber)
Natural Resource Partners NRP (coal)
Penn Virginia Resource Partnership PVR (coal, timber)
Pope Resources POPEZ (timber)
Terra Nitrogen TNH (fertilizer)
Real Estate MLPs
America First RE Investments AFREZ
American Real Estate Partners ACP
Heartland Partners HTL
Interstate General IGC
New England Realty NEN
Most MLPs pay between a 4-7% dividend (distribution), so a lot of people hold them as income stocks. The pipeline companies in particular tend to have stable businesses that are not much affected by the underlying price of the gas or oil they transport.
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