A Compilation Of High-Yield MLP Oil And Gas Pipeline Stocks

Oil & gas pipeline operators transport fuel through pipelines, often over great distances.

Most of these companies are structured as Master Limited Partnerships (MLPs), which helps limit costs by passing tax obligations along to shareholders.

Since MLPs are required to distribute the vast majority of their earnings to shareholders, these stocks usually offer very high dividend yields.

Master Limited Partnerships have the same liquid trading characteristics as common stock, yet they are very different from common stocks. The most obvious difference is that MLP's are 'pass through' investment vehicles--they pass through the income to you the investor. 

The Partnership pays no taxes at the company level--instead passing the income to you (and of course you likely pay taxes on the income). Thus one level of taxation is removed allowing the investor to receive a larger distribution. 

Today I like to show you some of the highest yielding oil and gas pipeline stocks on the market. Pipelines generate stable revenues while having a clear benefit compared to railroad and transportation stocks in terms of CO2 emissions.

Here is a table of 15 high-yield oil and gas pipeline partnerships...

21 Stock Ideas To Benefit From Weak Oil Prices

The oil price is in free fall and lost half of its value within the recent month. I love it when something changes in such a short period because often it could be a good sign for investors to find new investment targets.

The oil and gas or energy sector is very complicated. There are working many companies in this field and some of them suffering deeply under low oil prices. 

The bad news is that many stocks from the sector did not fall in the same amount as oil prices. One of the main reasons could be that market actors anticipate a mid or long-term oil price forecast of USD 100. That's enough for most of the industry leaders to make money and solid returns.

Not only basic material dividend stocks like Exxon or Chevron are the top picks. 

Indirect, companies with an energy intensive business model like industrial stocks, retailers, auto or restaurant stocks could get a short-term boost.

However, Today I like to share some investment ideas around the energy sector, who are not cheap now but could become an interesting investment.

Indirect oil related investment ideas

5 Cash-Hoarding Stocks With Top Yields And Strong Cash Flows (PFE, COP, CVX, LLY, MRK)

While I made my daily research on several stock market screeners, one question came deeply into my mind. When the markets are so expensive, who are the cheapest stocks, not by P/E but in terms of cash flow or Ebitda. I also included the Cash and debt of the company.

So, the good thing is that you can buy stocks in every market cycle but you must be careful with your investment spending.

Your final return depends in the end on your inital investment cost and if you buy at a high price, your return will fall into a low or negative area.

Good to know that dividends can upper your yield but my experience is that it could be very painful for an investor to look at a suffering return over years.

These are my criteria:

- Market Cap over 15 Billion

- Dividend Yield in the higher yield space over 3 percent

- Cheapest Enterprise-To-Ebitda Ratio on the market

My screen delivered some interesting results in the large cap area: Oil companies are top. 

COP, CVX are the best results in terms of EV/EBITDA. Both have a ratio of around 5 which is very comfortable in the current situation but what about Russia and the Middle East crises?

My second best results came from the technology space: Intel and Verizon. Warren Buffett added his VZ stake by one third on the past quarter and he might be right because VZ is much cheaper than rival AT&T. The EV/EBITDA ratio is only at 6.35 while T has a ratio of 9.66.

Healthcare is also good positioned with Merck, Pfizer and Eli Lilly but those are suffering on the patent cliff.

I believe that it does not make sense to look at stocks with a higher ratio. For sure cash flows can come down and the full sheet becomes trash but most of the companies serve values. What are your thoughts about my current screen? How are you invested?

These are the best results in terms of lowest debt-to-equity ratio:

Final Trades For The Year 2013: Exxon Mobil (XOM) And C.H. Robinson Worldwide (CHRW)

Last Friday, I made two final trades for the year 2013 and hit my primary goal of a minimum estimated dividend income of at least $3,000 per year.

I purchased shares of the leading energy company Exxon Mobil for around $2,000 dollar and purchased the air delivery and freighting services stock C.H. Robinson Worldwide. Both pay a dividend close the 2.5 percent mark and have a comfortable debt situation.

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For readers who are new to the matter and my dividend growth philosophy: I funded a virtual portfolio with 100k on October 04, 2012 with the aim to build a passive income stream that doubles each five to ten years. I plan to purchase each week one stock holding until the money is fully invested. The total number of constituents is expected at 50 – 70 companies and the dividend income should be at least at $3,000 per year.

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I’ve finished my year-end target of a $3,000 estimated dividend income by the end of the year 2013. I needed to make two final trades to satisfy this goal.

The good thing is that I still own over $10,000 dollar to make stock repurchases or to buy new stock trades. The remaining cash should grow by over 3,000 dollar next year. It makes me very flexible to distribute further money.

Portfolio I (Click to enlarge)

Portfolio II (Click to enlarge)

Portfolio Transactions (Click to enlarge)

For the time being, the markets look very expensive because most of the high-quality and fast growing dividend stocks are valuated far above the 20 P/E mark.

I deeply believe that it makes more sense to hold cash and keep it. For sure the full portfolio performance of 11.29 percent is not good and far below the market return but the volatility was also much lower due to the high cash amounts over the recent year.

The strategy is to create an asset vehicle that generates long-term income stream for normal private investors like you and me with the ambitious to double the income each 10 years or less. I’m very exiting how it develops over the time.

Portfolio Performance (Click to enlarge)

Here is the income perspective of the portfolio

Sym	Name	P/E Ratio	Dividend Yield	Buy	# Shrs	Income	Value
TRI	Thomson Reuters C	34.35	3.42	28.90	50	$65.00	$1,897.00
LMT	Lockheed Martin C	15.88	3.21	92.72	20	$95.60	$2,962.60
INTC	Intel Corporation	13.9	3.5	21.27	50	$45.00	$1,280.00
MCD	McDonald's Corpor	17.48	3.22	87.33	25	$78.00	$2,422.75
WU	Western Union Com	11.42	2.9	11.95	100	$50.00	$1,720.00
PM	Philip Morris Int	16.33	4.16	89.76	30	$107.40	$2,602.20
JNJ	Johnson & Johnson	20.64	2.8	69.19	20	$51.80	$1,847.00
MO	Altria Group Inc	14.92	4.81	33.48	40	$73.60	$1,532.40
SYY	Sysco Corporation	22.01	3.07	31.65	40	$44.80	$1,472.80
DRI	Darden Restaurant	20.04	3.87	46.66	30	$63.00	$1,629.90
CA	CA Inc.	14.3	2.99	21.86	50	$50.00	$1,671.50
PG	Procter & Gamble	20.78	2.9	68.72	25	$59.20	$2,050.25
KRFT	Kraft Foods Group	17.32	3.82	44.41	40	$80.00	$2,148.20
MAT	Mattel Inc.	19.38	3.11	36.45	40	$57.60	$1,879.60
PEP	Pepsico Inc. Com	19.35	2.72	70.88	20	$44.82	$1,654.20
KMB	Kimberly-Clark Co	21.83	3.09	86.82	15	$48.60	$1,576.50
COP	ConocoPhillips Co	10.74	3.85	61.06	20	$52.80	$1,407.80
GIS	General Mills In	18.5	2.86	42.13	30	$42.60	$1,495.20
UL	Unilever PLC Comm	19.04	3.45	39.65	35	$48.83	$1,433.25
NSRGY	NESTLE SA REG SHR	20.13	2.99	68.69	30	$65.31	$2,206.20
GE	General Electric	20.92	2.84	23.39	65	$51.35	$1,808.95
ADP	Automatic Data Pr	27.47	2.21	61.65	25	$44.63	$2,018.00
K	Kellogg Company C	23.22	2.96	61.52	25	$45.00	$1,524.50
KO	Coca-Cola Company	20.99	2.77	38.83	40	$44.80	$1,626.40
RTN	Raytheon Company	15.68	1.81	57.04	20	$33.00	$1,817.00
RCI	Rogers Communicat	12.12	3.78	46.5	50	$84.60	$2,226.00
GPC	Genuine Parts Com	18.62	2.59	77.06	20	$42.96	$1,664.40
TSCDY	TESCO PLC SPONS A	N/A	4.1	17.08	110	$75.79	$1,866.70
APD	Air Products and	24.27	1.87	85.71	15	$31.95	$1,701.45
GSK	GlaxoSmithKline P	20.65	4.6	52.16	30	$72.24	$1,590.00
WMT	Wal-Mart Stores	15.07	2.4	79.25	20	$37.60	$1,569.40
BTI	British American	16.2	3.94	111.13	30	$125.40	$3,211.50
CHL	China Mobile Limi	10.28	4.26	55.32	40	$89.52	$2,110.40
MMM	3M Company Common	21.25	1.84	110.27	15	$38.10	$2,090.25
TUP	Tupperware Brands	19.98	2.6	80.98	15	$37.20	$1,423.65
IBM	International Bus	12.84	2	193.17	20	$74.00	$3,701.60
HAS	Hasbro Inc.	24.83	2.22	44.09	30	$36.00	$1,632.00
T	AT&T Inc.	25.74	5.12	34.47	30	$54.00	$1,055.40
WAG	Walgreen Co. Comm	20.24	2.05	44.25	30	$35.40	$1,722.90
AFL	AFLAC Incorporate	10.25	2.12	59.39	20	$28.40	$1,345.00
TGT	Target Corporatio	16.72	2.53	68.69	32	$50.56	$1,988.80
CSCO	Cisco Systems In	11.85	2.34	23.98	130	$66.30	$2,862.60
DE	Deere & Company C	10.02	2.24	84.11	15	$30.60	$1,360.50
RGR	Sturm Ruger & Co	13.94	2.89	51.65	20	$42.48	$1,455.60
LO	Lorillard Inc Co	15.85	4.36	42.3	30	$66.00	$1,515.90
UNP	Union Pacific Cor	18.35	1.78	154.75	8	$23.68	$1,328.40
IDA	IDACORP Inc. Com	15.7	3	47.94	20	$31.40	$1,042.60
BAX	Baxter Internatio	17.55	2.77	66.38	20	$38.40	$1,389.40
MSFT	Microsoft Corpora	14.02	2.59	33.88	40	$38.80	$1,491.60
ACN	Accenture plc. Cl	17.49	2.12	77.71	20	$34.80	$1,650.20
BCE	BCE Inc. Common	14.23	3.93	44.26	25	$42.48	$1,077.00
VZ	Verizon Communica	64.04	4.22	50.31	30	$62.25	$1,475.10
CVX	Chevron Corporati	10.21	3.12	124.03	10	$39.00	$1,252.30
ORCL	Oracle Corporatio	16.04	0.64	35.2	40	$9.60	$1,519.20
XEL	Xcel Energy Inc.	14.7	3.99	28.21	50	$55.50	$1,393.00
CHRW	C.H. Robinson Wor	15.72	2.45	57.72	20	$28.00	$1,154.40
XOM	Exxon Mobil Corpo	13.18	2.44	101.51	20	$49.20	$2,030.20
						$3,014.94	$100,581.65
						Average Yield	3.00%
						Yield On Cost	3.34%