MLPs for High Yield

[dan_s]

I just posted an updated "MLP Watch List" under the MLP Tab on the main website.

If this is the year you are going to add more high yield cash flow to your portfolio, our list of 20 energy sector MLPs is a good place to start. The average annual yield 6.8%. Most of them have a strong track record of increasing distributions. For example, BBEP has now increased distributions for 15 straight quarters.

The midstream companies have less risk because they have less exposure to oil & gas price fluctuations and they have most of their revenues locked in my long-term contracts. In addition to high yield tax deferred cash flows, these companies have had significant unit price appreciation in the last five years. Demand for midstream services (gathering, processing, transportation and storage) is very high in all of the rapidly expanding U.S. shale plays. This sector is red hot. Read our recent profile on SXE.

We are going to update all of our Watch Lists on the last trading day of each month from now on.

From the MLP Watch List we will be dropping ATLS and GEL. Next month we will add MEMP and SXE, which have been added to our High Yield Income Portfolio.