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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...

15 Long-Term Dividend Growth Stocks

History has taught us that dividend growth stocks are the absolute best way to grow both your income and wealth over time.

One such group of dividend stocks is known as the S&P 500 Dividend Aristocrats — S&P 500 companies that have increased their payouts for at least 25 consecutive years. Aristocrats have collectively outperformed the S&P 500 over time with less volatility.

Of course, to be able to pay secure and growing dividends, a company needs to have a strong competitive advantage that gives it good pricing power and allows it to generate strong free cash flow.

Today, we’re going to look at 10 great dividend growth stocks worth investigating. These are companies with strong businesses that consistently generate rivers of FCF that allow them to reward long-term dividend lovers.

These are the results...

Dogs of the Dow 2017

Dividend stocks offer current income and growth potential, and the dividend stocks that you'll find among the 30 stocks of the Dow Jones Industrials are some of the best-known, highest-quality dividend payers you'll find. 

Rather than simply buying the entire Dow, however, many dividend investors choose instead to follow a strategy called the Dogs of the Dow. 

These stocks offer better yields than the Dow as a whole, and often, they've been able to outperform the Dow over the course of the year. Let's take a first look at 2017's Dogs of the Dow to see what you should watch out for over the coming year.

The "Dogs of the Dow" are the highest-yielding components at the start of any given year. In the past sixteen years, the Dogs of the Dow have returned an average of 7.9%. 

This is above that of the overall Dow, which has returned a more meager 6.3% average return. The Dow stocks gained an exceptional 18.7% last year, with Caterpillar (NYSE:CAT), Goldman Sachs (NYSE:GS), and JPMorgan (NYSE:JPM) leading the charge. 

Here are the Dogs of the Dow for 2017 with yield...

Dividend Growth Stocks Of The Past Week Compiled

One of the most successful investment strategies is to buy and hold stocks with track records of dividend growth. This is because a rising dividend is a sign of a very strong business with excellent cash flows and earnings to support increased payouts, and the dividends really add up over time when reinvested. 

Dividends are very important. You can get a steady income from your investments and if your trading idea fails, you still have the dividends from the past. 

Dividend growth is better because a growing business structure will also give you more and more money over the time. If you got a very good investment, you will earn one day your full investment amount by dividends yearly. That's really great but takes a long time.

With this in mind, let’s take a look at stocks that raised their dividends last week. Below is a full list of all dividend raiser from the past week.

These are the latest dividend growth stocks...

20 Cheapest Large Cap Buyback Opportunities

It’s that time of year again — the time of year when companies ramp-up their stock buyback activity as they realize they’ll have enough cash to fund those efforts, and/or just to make sure they reach their internal buyback goals.

When corporations are profitable and established, they tend to return capital to shareholders. This can be achieved via stock buybacks to shrink the float and to support the stock, or it can be done via one-time dividends or by raising their annualized quarterly dividends. Both are activities I do cover on this blog on a regular basis.

Many investors love the cash flow from dividends. After all, dividends can contribute up to 50% of total returns through time. Other investors prefer for companies to buy back their common stock. But a good alternative is to combine both shareholder friendly activities.

When picking out companies that will be buying back the largest number of shares in 2016, several things have to be considered. First and foremost, a company had to be willing to spend billions of dollars to buy its shares. Such companies also have to have a history of conducting stock buybacks, or they had to have a solid reason why they would be so aggressive in buying back stock this year alone.

As for which stocks are particularly well-positioned to be the beneficiaries of corporate buyback efforts, investors may want to put the following names on their radar. Attached you will find a selection of the 20 cheapest large cap stocks with a buyback announcement during the past 12 month.

These are the results...