The 10 Biggest MLP Stocks
Master limited partnerships (MLPs) are entities that pass through income to their investors. Because of that, they don't pay income tax at the corporate level. That enables their investors to collect above-average cash distributions, making MLPs tailored to those seeking income.
To meet the requirements for this tax advantage, MLPs must earn 90% of their income from qualifying sources as determined by the Internal Revenue Service. Qualifying activities include the exploration, production, processing, and transportation of natural resources, as well as some investment-related activities such as owning commercial real estate. Because of that, most MLPs are found in the energy or financial sectors.
This guide will walk you through the 10 biggest MLPs so that you understand the competitive advantages that enabled these 10 to become the largest companies in this space.
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