AMLP offers direct exposure to US midstream operators with an attractive 8% yield, benefiting from stable, dividend-paying companies. The ETF recently increased its dividend and could reach a $1 payout, supporting a price target of $52.25–$53.33 if yields normalize. Key risks include sector concentration, potential declines in US oil and gas production, and sensitivity to dividend cuts or trade tensions.
Midstream/MLP ETFs have recorded consistently strong flows in 2025, as the segment is on track to outperform the broader market during the first half of the year.
The Alerian MLP ETF (AMLP) has generated attractive returns for investors in recent years. It is outperforming the S&P 500 so far in 2025, yet MLP valuations have not become overextended.
SUMMARY MLP/midstream investment products can help investors access the MLP space without the potential headaches of a Schedule K-1. Products can mitigate some potential risks with midstream investing and help avoid Unrelated Business Taxable Income (UBTI) for tax-exempt organizations and retirement accounts.
Conservative capital spending by upstream players and gradual shifting to renewables may hurt the demand for midstream players' assets. Enterprise (EPD), Energy Transfer (ET) and Plains All American Pipeline (PAA) are surviving the industry challenges.
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Midstream MLP investments have continued to offer compelling income, with several companies increasing payouts. Energy markets have been volatile in recent weeks.
Alerian MLP ETF is a nearly $9 billion energy infrastructure MLP fund, outperforming the market and offering a convenient investment option. The fund's top holdings, including Enterprise Products Partners and MPLX, constitute almost 60% of assets, providing high single-digit dividend yields. Despite a 0.85% management fee, the ETF simplifies tax complexities, avoiding K1 forms and offering an 8% corporate dividend yield.
Summary There are two types of funds that own Master Limited Partnerships (MLPs). Funds are delineated by their weighting to MLPs and their resulting tax treatment.
Following a careful analysis of the Zacks Oil and Gas - Refining & Marketing MLP industry, we advise focusing on companies like TRGP, GLP and CAPL.
Your income portfolio needs to have low-risk and stable investments to reduce volatility and increase income stability. Enterprise offers both strong income and capital appreciation. This company is one of the rarest types of MLPs, one that works for unitholders, not against them.
It is rare to find sustainable 10%+ yields from common equities. However, there are exceptions to this. We share our favorite 10%+ yielding MLP and BDC right now.