Hey WVPATX

[moe]

http://www.cnbc.com/2015/10/26/new-way-to-bet-on-oil-wipes-out-billions-in-investor-savings.html

You were on here pimping MLPs...though many investments in oil have taken a bath.

New way to bet on oil wipes out billions in investor savings

The energy partnerships, formally called master limited partnerships, can avoid some corporate taxes by passing much of what they earn straight to their investors, called partners.

 

[WVPATX]

http://www.cnbc.com/2015/10/26/new-way-to-bet-on-oil-wipes-out-billions-in-investor-savings.html

You were on here pimping MLPs...though many investments in oil have taken a bath.

New way to bet on oil wipes out billions in investor savings

The energy partnerships, formally called master limited partnerships, can avoid some corporate taxes by passing much of what they earn straight to their investors, called partners.

The MLP's I have referred to are mid stream MLP's that are in fee based businesses. These MLP's are simply transport agents and most of their revenues are not derived from commodity prices nor are they impacted much by them. Companies like EEP, KMI (although KMI recently converted from an MLP to a C corp), ETP, EPD, etc. are well run MLP's that pay extraordinary dividends. Their stock prices have been hammered along with the entire energy sector. These MLP's are not buy and sell, rather they are buy and hold. Live on the dividend until the stock prices get back toward normal PE's.

BTW, EPD, ETP, ETE, and KMI all just raised their dividend payout.

 

[WVPATX]

BTW, many of the MLP's distributions are not taxable. You have a chance to get a 6 to 10% distribution tax free. I would still recommend these very high quality midstream MLP's as long as you can buy and hold. I would buy them in traunches as the price of oil declines.

 

[KTeer]

Midstream MLP's are under pressure to renegotiate fees and suffer from to much capacity due to overbuilding. Unfortunately, it is impossible to eliminate risk in the oil and gas business. My recommendation would be buy stock in a major. Chevron is still paying a 5% dividend, I believe.

 

[WVPATX]

Midstream MLP's are under pressure to renegotiate fees and suffer from to much capacity due to overbuilding. Unfortunately, it is impossible to eliminate risk in the oil and gas business. My recommendation would be buy stock in a major. Chevron is still paying a 5% dividend, I believe.

No question. But the midstream players I cited are all very large, diversified companies that have been absolutely hammered along with other MLP's. They offer safe and growing dividends with tremendous upside. You're also right that CVX, COP, XOM and even OXY are also tremendous buy and hold opportunities but with lower dividends.