One of the best places for investors to find high yields right now is in the MLP (Master master Limited limited Partnershippartnership) sector. Many MLPs pay 7% dividends and
yield three times higher than S&P stocks or
Treasuries. Many MLPs are pipeline businesses, earning that earn stable income from transporting oil and gas. Demand for their services is determined by energy
volume, not prices, so MLPs they are less volatile than most other energy stocks, which make their cash distributions more reliable. And best of all -- many MLP stocks yield as high as 7%, nearly yield three times higher than S&P 500 stocks or Treasuries.
If you believe like I do that energy demand will continue to steadily rise, then you can buy MLPs and feel fairly confident your investment will grow. If the MLP has well-positioned assets and a strong general partner, then share price gains are even more likely.
Here are three pipeline MLPs that fit that description...
1. Regency Energy Partners LP (NYSE: RGP)
Yield: 7%
Regency owns 5,200 miles of pipeline and related assets near many of America's the United States' richest emerging energy plays, including the Haynesville, Eagle Ford, Barnett, Fayetteville and Marcellus Shalesshales. Regency also owns a 50% interest in pipelines in Louisiana and Oklahoma, and a 30% interest in Lone Star, a natural- gas liquids storage and transportation business.
Regency's cash flow increased 50% last year to $253.7 million from $169.2 millioncompared with in 2010 as a result of higher gathering and processing volume, and an earnings contribution from Lone Star. Net income improved to $74 million last year from a net loss of $11 million in 2010. and dDistributable cash flow of $285.1 million more than covered $274.5 million paid to unit holders.