With 47 fund products offering one-stop exposure to energy-focused master limited partnerships (MLP), it’s safe to say that the market has caught on to the appeal of this security class: high yields and low taxes.
But investors’ desperation to find above-average yields in a low-yield world has bid up the prices of many high-quality MLPs to frothy valuations. Despite the recent rally in stocks, the halting US economic recovery and ongoing concerns about the EU’s still-unresolved sovereign-debt crisis suggest that the market hasn’t suffered its last growth scare.
Investors should maintain their discipline when the stock market rallies and take some profits in names that trade above our buy targets. Save your dry powder to lock in above-average yields on popular midstream MLPs during the inevitable pullback.
For investors wondering which MLPs they should buy now, the names on our Focus List offer the best combination of value and potential upside.
Your complete guide to energy investing, from growth stocks to high-yielders.
In October 2012, renowned energy expert Elliott Gue launched the Energy & Income Advisor, a twice-monthly investment advisory that's dedicated to unearthing the most profitable opportunities in the sector, from growth stocks to high-yielding utilities, royalty trusts and master limited partnerships.
Elliott and Roger on Jan. 28, 2021
Balanced portfolios of energy stocks for aggressive and conservative investors.
Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.
Our assessment of every energy-related master limited partnership.
Roger Conrad’s coverage of more than 70 dividend-paying energy names.