5 Fairly Valued MLPs: Is The Dilution Worth The Yield And How Do You Value Them?

5 Featured MLPs: Extraordinary Historical Performance for the Income Investor

In spite of all the complexities regarding investing in MLPs I referenced above, their historical performance achievements cannot be denied. The following performance results on each of the 5 featured MLPs in this article clearly illustrate the long-term benefit of investing in MLPs. As previously stated, their primary allure is for their high level of income distributions and the growth of those distributions over time. Additionally, they have also proven themselves to be reasonable capital appreciation investments as well.

However, when examining the following performance reports, it’s important to keep the tax considerations in mind. Much of the income distribution is considered return of capital, and therefore, a major portion of MLP distributions are considered tax-deferred and the remaining portion taxed at ordinary income rates. The precise calculations are reported in each respective company’s K-1. This creates additional tax filing requirements for the individual investor.

Buckeye Partners, L.P. (NYSE:BPL)

BPL-perf

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Enterprise Products Partners L.P. (NYSE:EPD)

EPD-perf

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Energy Transfer Partners LP (NYSE:ETP)

ETP-1

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Plains All American Pipeline, L.P. (NYSE:PAA)

PAA-perf

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Sunoco Logistics Partners L.P. (NYSE:SXL)

SXL-perf 

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Bonus Video: Is the Dilution Worth the Yield and How Do You Value MLPs?