My Favorite Master Limited Partnerships - High Yields and Low Taxes

MLPs are publicly traded limited partnerships that derive at least 90% of their cash flows from real estate, commodities or natural resources. In the US there are about 120 MLPs with a combined value around $875 billion.

There are three classes of MLPs: upstream (resource extractors like oil and gas partnerships), midstream (those that transport and process resources, like pipeline operators), and downstream (refiners and distributors).

Rather than paying dividends to shareholders, they pay distributions to unit holders. Another difference is that most midstream MLPs have a general partner, who runs the partnership. 

Limited partners (investors) don't have a say in how the MLP is run. In addition, general partners typically hold incentive distribution rights (IDRs), which means that a higher proportion of the MLPs marginal cash flow goes to them as the distribution grows (up to 50% of marginal cash flow).

There are three main drawbacks to MLPs. The first is that those partnerships with a general partner will experience slower distribution growth over time, as IDRs increase. Second, MLPs issue K-1 forms which are used instead of 1099's and can add a bit of complexity during tax preparation.

Finally is the fact that they shouldn't be used in tax deferred accounts such as IRAs. This is because they can generate what's known as UBTI (unrelated business taxable income) that can result in you owing taxes even though the investment is in a tax deferred account.

Attached I've compiled a couple of MLP's I like for a deeper research. Each of them pays a high dividend and has a higer market capitalization, over 300 million.

These are the names I like from the MLP space...

20 Great Dividend Stocks With Yields Between 10.20% and 20.63%

Any income investor is aware that with interest rates being so low for so long, market prices for bonds and dividend stocks are likely to fall as the Federal Reserve raises interest rates.

But even after the Fed changes direction and begins raising the federal funds rate above the range of zero to 0.25%, where it has been locked since late 2008, rates are likely to remain quite low for a long time.

So the market prices of income-producing securities may not fall as much as many investors fear, or maybe they’ll stage a recovery after the hysteria of the Fed’s likely near-term policy change wears off.

High-growth momentum stocks are nice, but many investors these days are more interested in stability and dependable dividends. 

If you’re an income-oriented investor, the attached list of high yielding dividend stocks is ideal for further research. Each of the stocks has a double-digit dividend yield with positive ROA and positive 5 year earnings growth forecasts.

Some of these stocks may be boring, some of the yields may not be thrilling and some may not have impressive earnings growth in their future. 

But all of the 20 dividend stocks are worth a deeper look when it comes to preserving capital and making regular dividend payments. Check out the list below and sort by company, yield or dividend history.

Here is the list...

20 Stocks With Over 10% Dividend Yield And Positive Return On Assets

For those investors who love very high yields, I've created a screen of the highest yielding dividend stocks with cheap P/E'S and profitable positive earnings growth for the future.

These are my criteria in detail:

- Forward P/E under 15
- Dividend Yield Over 10%
- 5 Future EPS Growth Positive
- Positive ROA
- Debt to Equity Under 1

Attached you will find the 20 top yielding results.

Shipping stocks are still dominating the list. They are very small and suffer from a weakness in China - Shipping rates are very low and hit recently All-Time Lows. Since then, they strongly recovered.

Another good represented industry is the Mortgage Investment and REIT industry. 

Here are the results...

Best Dividend Paying Ex-Dividend Shares On February 05, 2013

The best yielding and biggest ex-dividend stocks researched by ”long-term-investments.blogspot.com”. Dividend Investors should have a quiet overview of stocks with upcoming ex dividend dates.

The ex dividend date is the final date on which the new stock buyer couldn’t receive the next dividend. If you like to receive the dividend, you need to buy the stock before the ex dividend date. I made a little screen of the best yielding stocks with a higher capitalization that have their ex date on the next trading day.

A full list of all stocks with payment dates can be found here: Ex-Dividend Stocks February 05, 2013. In total, 24 stocks and preferred shares go ex dividend - of which 13 yield more than 3 percent. The average yield amounts to 4.45%.

Here is the sheet of the best yielding, higher capitalized ex-dividend stocks:

Company	Ticker	Mcap	P/E	P/B	P/S	Yield
Mid-Con Energy Partners	MCEP	432.10M	18.36	7.57	7.89	8.84%
Martin Midstream Partners	MMLP	913.16M	34.61	1.97	0.72	8.81%
Summit Midstream Partners	SMLP	1.07B	39.76	0.41	6.83	7.50%
Linn Energy, LLC	LINE	7.82B	-	2.19	5.91	7.41%
Linn Co, LLC	LNCO	1.40B	-	-	-	7.08%
Atlas Pipeline Partners LP	APL	2.17B	33.66	1.46	1.79	6.82%
Inergy Midstream LLC	NRGM	1.78B	40.81	3.21	9.37	6.51%
Rentech Nitrogen Partners, L.P.	RNF	1.86B	22.48	17.48	9.59	6.26%
Inergy, L.P.	NRGY	2.66B	4.82	2.55	1.33	5.73%
FirstEnergy Corp.	FE	16.93B	16.00	1.26	1.05	5.43%
Intel Corporation	INTC	106.26B	10.03	2.08	1.99	4.21%
CVR Partners, LP	UAN	1.98B	14.38	4.27	6.16	2.83%
ADTRAN Inc.	ADTN	1.27B	27.32	1.83	2.04	1.78%
The Mosaic Company	MOS	26.44B	14.41	2.02	2.63	1.61%
Starbucks Corporation	SBUX	42.61B	30.57	8.34	3.12	1.48%
Apogee Enterprises, Inc.	APOG	708.30M	40.77	2.14	1.03	1.45%
Peabody Energy Corp.	BTU	6.73B	-	1.36	0.83	1.36%
Wintrust Financial Corporation	WTFC	1.37B	16.20	0.76	2.19	0.97%
HB Fuller Co.	FUL	1.99B	29.78	2.56	1.06	0.85%
KB Home	KBH	1.53B	-	4.33	0.98	0.54%

The Biggest Ex-Dividend Stocks On November 05, 2012

The Best And Biggest Ex-Dividend Stocks Researched By Dividend Yield - Stock, Capital, Investment. Dividend Investors should have a quiet overview of stocks with upcoming ex-dividend dates. The ex-dividend date is the final date on which the new stock buyer couldn’t receive the next dividend. If you like to receive the dividend, you need to buy the stock before the ex-dividend date. I made a little screen of the best yielding stocks with a higher capitalization that have their ex-dividend date on the next trading day.

A full list of all stocks with ex-dividend date can be found here: Ex-Dividend Stocks on November 05, 2012. In total, 41 stocks and preferred shares go ex-dividend - of which 23 yield more than 3 percent. The average yield amounts to 4.17%.

Here is the sheet of the best yielding, higher capitalized Ex-Dividend stocks:

Company	Ticker	Mcap	P/E	P/B	P/S	Yield
Penn Virginia Resource Partners LP	PVR	2.26B	-	2.64	2.20	8.43%
CVR Partners, LP	UAN	2.02B	14.17	4.23	6.22	8.26%
Inergy, L.P.	NRGY	2.64B	-	2.42	1.23	7.50%
New York Community Bancorp	NYB	6.19B	12.48	1.10	3.42	7.09%
Alliance Resource Partners LP	ARLP	2.44B	11.94	2.55	1.67	6.43%
MarkWest Energy Partners LP	MWE	6.45B	21.96	3.13	3.94	5.83%
FirstEnergy Corp.	FE	18.78B	16.45	1.39	1.13	4.90%
Access Midstream Partners, L.P.	ACMP	2.83B	24.27	2.21	4.62	4.68%
EV Energy Partners LP	EVEP	2.79B	17.81	2.37	10.23	4.65%
Intel Corporation	INTC	111.37B	9.72	2.26	2.07	4.04%
Cablevision Systems Corporation	CVC	4.73B	21.82	-	0.71	3.44%
Cleco Corporation	CNL	2.63B	15.18	1.79	2.49	3.12%
Xilinx Inc.	XLNX	8.77B	18.09	3.19	3.99	2.63%
City National Corp.	CYN	2.77B	13.65	1.19	3.14	1.93%
AptarGroup, Inc.	ATR	3.54B	21.00	2.63	1.53	1.66%
MSC Industrial Direct Co. Inc.	MSM	4.62B	18.73	4.10	2.05	1.63%
Wynn Resorts Ltd.	WYNN	12.35B	23.50	35.94	2.37	1.63%
Beam, Inc.	BEAM	8.80B	48.33	2.03	3.75	1.48%
Brown & Brown Inc.	BRO	3.70B	20.90	2.09	3.24	1.40%
Banco Bradesco S.A.	BBDO	51.15B	9.43	1.63	2.35	0.83%