Midstream Energy MLP Investing

[TPD]

Has anyone invested in MLPs? Specifically midstream energy companies like EPD, MMP, ET, SUN. What has your experience been? Are these type of investments suitable for the average Joe? Yields are 9% and greater for some of these companies.

 

[PeoplesElbow]

No experience there, if you are looking for a great yield MO and XOM are pretty darn high, oil stocks are expected to start climbing in the next year too.

 

[TPD]

No experience there, if you are looking for a great yield MO and XOM are pretty darn high, oil stocks are expected to start climbing in the next year too.

I've owned MO since 1999. Sold XOM in August to buy WBA. I prefer growth stocks over dividend stocks but these MLPs look interesting.

 

[PeoplesElbow]

I've owned MO since 1999. Sold XOM in August to buy WBA. I prefer growth stocks over dividend stocks but these MLPs look interesting.

I used to be into the shippers like TransOcean, they made me quite a bit of money between 2005-2008, at one point they were yielding around 20%.

Are the dividends on those midstream energy companies qualified dividends or not? The shippers were not qualified dividends.

 

[TPD]

That’s the thing - the dividends are not called dividends. The annual payout is a return on the price you paid for the stock, then once you have received your initial investment back, about 10 years based on the 10% payout, I think the payout then becomes regular income. Everything I read says I will need a professional to prepare my tax return if owning a MLP.