5 Top MLP Stocks to Buy Now
Master limited partnerships (MLPs) are entities that have chosen to structure as partnerships for tax purposes. As such, they pass through income to investors so that they don't pay taxes at the corporate level. That enables investors to keep more of the income they produce. (Also see our investing guide, "How to Invest in MLP Stocks.")
MLPs, however, aren't without their pitfalls. For starters, there are tax issues with MLPs that can prevent investors from holding them in an IRA or 401(k). Further, many MLPs have delivered poor investment performance over the years due to a variety of problems, including mismanagement and the impact of oil price volatility -- most MLPs are in the energy sector because of the qualifying income limitations. Because of these factors, MLPs aren't for everyone.
However, MLPs can be great investment options for those seeking a tax-advantaged income stream as long as they choose ones that can maximize the benefits of the structure. This guide will walk investors through how to find the best MLPs. It will also take a closer look at five top options with enduring competitive advantages that make them excellent buys for the long term.
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