Unlike regular corporations, MLPs don’t pay any corporate-level tax. Instead, these partnerships pass through the majority of their income to investors in the form of regular quarterly distributions. Each investor is responsible for paying tax on their share of distributions received. This allows investors to defer much of their personal income tax liability for years into the future or, in many cases, indefinitely.
"MLP investments offer investors a simple value proposition:
“We reiterated our buy recommendations on Enterprise Products Partners (NYSE: EPD), Linn Energy (NSDQ: LINE), and Kinder Morgan Energy Partners (NYSE: KMP) because they continue to provide safe, high-yield distributions in a time when investors are finding it really difficult to save for retirement,”
In addition to refreshed buy recommendations on Enterprise Products Partners (NYSE: EPD), Linn Energy (NSDQ: LINE), and Kinder Morgan Energy Partners (NYSE: KMP), the report also introduces several new MLP picks, including Eagle Rock Energy Partners LP (NSDQ: EROC) and DCP Midstream Partners LP (NYSE: DPM).
“We were intrigued by DCP Midstream Partners LP (NYSE: DPM) when it went public in 2005 as an MLP spun off from privately held DCP Midstream LLC, a 50-50 joint venture between ConocoPhillips (NYSE: COP) and Spectra Energy (NYSE: SE). We finally decided to add DCP Midstream Partners LP (NYSE: DPM) to the latest edition of our MLP report because of the company’s robust drilling activity in the Eagle Ford Shale and natural gas liquids hedges,” concluded Conrad.
The special report containing full analysis of the MLP stock picks mentioned above can be accessed for free by visiting: http://www.investingdaily.com/