A Trio of High Yield MLPs


Bob Ciura Image Bob Ciura Contributing Editor, Wyatt Investment Research

These three high-yield MLPs have dividend yields ranging from 5% to 7%. Plus, their fundamentals have remained healthy during the current downturn, which means their dividends are sustainable, even at $50 oil, explains Bob Ciura, contributing editor to Wyatt Research's Daily Profit.

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Investors interested in dividend income should take a closer look at high-quality high yield MLPs like Magellan Midstream Partners (MMP), Enterprise Products Partners (EPD) and Buckeye Partners (BPL).

Magellan, Enterprise Products and Buckeye Partners have all increased their dividends for more than 10 years in a row. These years include the Great Recession of 2007-2008, as well as the current downturn.

Investors might be reluctant to buy MLPs, and who could argue? Many MLPs were ravaged when oil and gas prices fell from 2014 to 2016.

Several MLPs had to cut their dividends to survive. Some suspended their distribution payments altogether. A few ended up in bankruptcy.

However, it is important to remember that the hardest-hit MLPs were in the upstream segment of the oil and gas sector. Upstream refers to exploration and production activities, which are highly reliant on the price of the commodity.

Magellan, Enterprise Products and Buckeye are all midstream MLPs.