Linn Energy LLC (LINE), Vanguard Natural Resources, LLC (VNR): Are Monthly Dividends the Next Big Thing?

However, I don’t expect Enterprise to switch to a monthly dividend anytime soon. Instead, smaller MLPs that are looking to draw attention from investors or those companies that are struggling to grow distributions would make the more ideal candidates. That’s why you could see a company like Energy Transfer Partners LP (NYSE:ETP), which has struggled to raise its distribution in recent years, think about making the switch. Energy Transfer Partners LP (NYSE:ETP) investors have languished without a distribution raise from 20 consecutive quarters, so until the company is able to restart its distribution growth, it would make an ideal candidate to switch to monthly payouts.

We can speculate all day as to which companies might make the switch. That being said, I don’t think investors will have to wait too long, as I think that Vanguard Natural Resources, LLC (NASDAQ:VNR) and, now, Linn Energy LLC (NASDAQ:LINE) have begun a new trend. Because a lot of income investors, like retirees, use the income to pay current bills, those companies that provide more regular income are going to be highly sought after. That’s why I do think that monthly distributions will be the next big trend to watch, at least in the sleepy MLP space.

The article Are Monthly Dividends the Next Big Thing? originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo owns shares of Enterprise Products Partners L.P., Linn Energy, LLC, and Linn Co, LLC . The Motley Fool recommends Enterprise Products Partners L.P..

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