How to Trade MLP Mania

There's been a recent mania in energy to spin off assets as master limited partnerships. You've seen it in practically every refinery, but other exploration-and-production energy companies have also repackaged their downstream assets in MLP form. Let me explain why this is happening and how to trade the trend.

Master limited partnerships' main structural superiority is their tax-advantaged status, designed to help shareholders on fixed incomes. By deferring much of the liability at the corporate level and shifting it to personal income for shareholders, the MLP promises to return virtually all the profits to shareholders. This equates to high percentage distributions of 5%, 7%, and sometimes 10% and more....441 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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