In real estate and midstream infrastructure segments, investors have some decent opportunities to find durable income plays. Even though these segments provide attractive tailwinds for income investing, to avoid value traps and capture truly sustainable dividend yielders, there has to be a meaningful due diligence involved. In this article, I present two picks, which offer attractive yields that are supported by defensive and growing cash flows.
The Alerian MLP Index ETN offers exposure to high distributions from midstream MLPs with certain tax advantages over MLP ETFs, making it attractive for income-focused investors. Despite its volatility and underperformance compared to broad-market ETFs, AMJB's 6.2% yield is significantly higher than SPY's 1.23%, appealing for ongoing income. The positive outlook for midstream MLPs, supported by strong utilization rates and declining interest rates, suggests continued growth and higher distributions for AMJB.
Millennial Potash Corp (TSX-V:MLP, OTCQB:MLPNF) told investors that the President of Gabon Brice Oligui Nguema has reaffirmed his support for the company's Banio Potash Project following a visit to the towns of Mayumba and Ndindi on the project. MLP's Gabonese subsidiary, Mayumba Potasse SARL, provided a corporate presentation including the results of its recent Preliminary Economic Assessment (PEA) highlighting the project's potential production timeline.
Following a careful analysis of the Zacks Oil and Gas - Refining & Marketing MLP industry, we advise focusing on companies like Targa Resources, Sunoco LP and CrossAmerica Partners LP.
TC Energy Corporation registered yet another quarter of solid EBITDA growth. Yet, the level of growth was not the key driver behind the recent surge in the stock price. Instead, more important drivers were the large chunk of previously committed CapEx project coming online and a communicated path of an incremental CapEx reduction going forward. In this article, I elaborate on why I have decided to upgrade my rating to buy after the circulated Q2, 2024 earnings deck.
While midstream earnings ramp up next week, many announcements of second-quarter distributions have already surfaced. Half of the companies in the Alerian MLP Infrastructure Index (AMZI), tracked by the Alerian MLP ETF (AMLP), have declared distributions for the second quarter.
Charlie Munger was a big believer in concentrated portfolios. Building a high-yielding, tax-efficient portfolio with BDCs, REITs, and MLPs in different accounts can deliver tax-free income in retirement. I share what I would hold in an ultra-concentrated buy-and-hold 8%-yielding portfolio for the next decade.
Done properly, income investing can address the age-old dilemma of having to continuously work to make ends meet. Western Midstream topped the analyst consensus for revenue in the first quarter. The company is making progress to bring its net leverage ratio to its 3x target.
Investing in midstream master limited partnerships (MLPs) can provide portfolios with a wide variety of benefits beyond exposure to the energy industry. Stacey Morris, VettaFi's head of energy research, participated in VettaFi's recent 2024 Alternatives Symposium.
Summary MLP/midstream investment options have evolved as the midstream space has shifted more toward corporations and the number of MLPs has declined. The number of midstream RIC ETFs has increased, while the selection of closed-end funds and exchange traded notes has gradually narrowed.
FPL, FEI, FEN, and FIF have merged into FT Energy Income Partners Enhanced Income ETF, EIPI. The merger was initiated by activist Saba Capital and resulted in a conversion to an ETF structure, allowing for liquidity at NAV. The newly formed ETF, EIPI, has similar holdings to the former constituent funds and employs an options income strategy.