The following stocks have high dividend yields (over 10%) and positive expected earnings growth forecasts....Each of the results have a positive return on assets.
Here are the 19 stocks...
Dividend Income orientated Blog. Ideas and Thoughts about Stocks, Dividends and Growth Opportunities.
Showing posts with label DLNG. Show all posts
Showing posts with label DLNG. Show all posts
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...
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 MLPs To Get Money From Without Filling K-1
For investing purposes, MLPs and LLCs can be a great way to maximize the amount of cash that can be paid to investors, because these organizational structures don't pay income tax, but pass that burden along to those who are invested in it. The same goes for some trust structures.
In other words, because these entities don't pay corporate taxes, the full burden falls on those receiving income from them. This differs from dividend income paid to shareholders by a typical corporation in that regular dividends are taxed as long-term capital gains, while much of the income paid and shown on a Schedule K-1 can be classified as regular income. That means it's taxed at your effective income-tax rate, which is often much higher than the 15% or 20% long-term capital gains rate for corporate dividends.
In summary, a Schedule K-1 issuing entity may be able to pass more income along to you, the investor, but you may end up giving more of it back in taxes than if you'd received regular dividends from a corporation. It really boils down to your tax rate, and how much more income the LLC, MLP, or trust is able to pay.
In order to have less effort with your portfolio allocation and your investment, you could avoid such stocks with K-1 schedules.
Nevertheless, if you like to invest into stocks with a master limited status, you could look at the following list. Each of the stocks are MLP's with status Partnership "C" corporation. Those companies create a classical 1099 Filling and don't send you K-1's.
Here is the list...enjoy it and share it with your social friends...
In other words, because these entities don't pay corporate taxes, the full burden falls on those receiving income from them. This differs from dividend income paid to shareholders by a typical corporation in that regular dividends are taxed as long-term capital gains, while much of the income paid and shown on a Schedule K-1 can be classified as regular income. That means it's taxed at your effective income-tax rate, which is often much higher than the 15% or 20% long-term capital gains rate for corporate dividends.
In summary, a Schedule K-1 issuing entity may be able to pass more income along to you, the investor, but you may end up giving more of it back in taxes than if you'd received regular dividends from a corporation. It really boils down to your tax rate, and how much more income the LLC, MLP, or trust is able to pay.
In order to have less effort with your portfolio allocation and your investment, you could avoid such stocks with K-1 schedules.
Nevertheless, if you like to invest into stocks with a master limited status, you could look at the following list. Each of the stocks are MLP's with status Partnership "C" corporation. Those companies create a classical 1099 Filling and don't send you K-1's.
Here is the list...enjoy it and share it with your social friends...
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