I Like Alerian’s MLP Screener

Just now it shows 14 master limited partnerships are paying double-digit dividends to their investors. That’s at least $10,000 of one year’s income for each $100,000 invested in the lowest yielding and $20,500 for each $100,000 invested in the highest. See:

http://www.alerian.com/mlp-screener/

Of the 14, 5 are companies involved in exploration and production. In alphabetical order, their ticker symbols are BBEP, LRE, MEMP, NSLP, and QRE.

The two highest-paying are refiners (ALDW and CVRR).

Alerian links with a recent article in Barron’s. Its writer, Lawrence C. Strauss, succinctly explains MLPs as follows:

“The MLP structure—most often used by energy companies—makes investors ‘limited partners,’ who benefit from its unique tax structure. MLPs don't pay corporate tax as long as they divvy up the profits among the partners (shareholders).

“About 80% of that payout is considered a "return of capital," on which investors don't owe any income or capital-gains taxes.That return of capital, though, lowers their cost basis, which can mean a big tax bill down the road.”

Strauss goes on to tell why those who prepare tax returns for clients hate MLPs and the mountain of paper they put on the table—especially when a client invests in more than one. See the full article at:

http://online.barrons.com/article/SB50001424052748704235404578404631782560640.html

This newer piece on MLPLs, by Dimitra DeFotis, appeared in the Barron’s of Aug. 12, 2013: “MLP Boom or Bust?” Barron’s subscribers can see it at:

http://online.barrons.com/home-page?refresh=on