Looking for Steady Income? Reconsider These MLPs

Income investors have countless options in today’s market — ranging from high-yield bonds to real estate investment trusts (REITs) — but one asset class often flies under the radar. Master limited partnerships, or MLPs, are publicly traded partnerships that own pipelines, storage facilities and other energy infrastructure assets. By transporting or storing energy, they generate predictable income without the volatility of oil or gas prices.

In addition to a cash-flow business model, MLPs are required to distribute 90% of their income (like a REIT) and enjoy special tax treatment.

Let’s dive into why you might want to consider MLPs and where to find the best options for your portfolio.