Stock Market: Interesting MLP paying 6.8% dividend
A bit risky, but IMHO may do well long term-- and then, of course, there's the dividend & MLP tax advantages. I already own a little, am considering buying more -- but only on a pullback, too risky now.
There are less risky MLPs-- especially EPD and PAA--but they are too expensive now having already had big moves up:
http://chart.finance.yahoo.com/z?s=PAA&t=1y&q=&l=&z=l&a=v&p=s&lang=en-US®ion=US
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I am not recommending buying any of these now. Investing in any stock could result in a loss of part or even all of your investment.(Also, because of their tax structure, MLPs shouldn't be put in an IRA acct).
Ahhhhh.....too late!
I stuck my entire portfolio into MLP!!!
;^) ... jk
I love your articles like this Krishna. Thanks.
And I love your new Avatar. One of my favorite guys!
IMO, MLPs are one of the best kind of stocks to buy. The "dividends" are generally very high, and enjoy special tax benefits. And in addition, many large funds need to buy them. Finally, not only is the payout good, but the good ones usually have a steady increase in price over time.
Of course, nothing is certain-- and one of the keys to market success is diversification-- meaning owning some dividend-paying non-MLPs as well. (But bewarte of REITs here!) Also, avoid Canadian MLPs.
They have unique tax advantages-- but apparently these are negated if they are held in IRA acct (it may pay to sell those in an IRA, and then buy them back on a dip--- in a non-IRA acct. But I'm not an accountant-- nor do I play one on TV-- so ask your acct).