With interest rates high, and traditional-income products like bonds, CDs, and even savings accounts now paying great yields, it’s hard to remember a time when investors had to search to find income. Some of the biggest winners from that search were master limited partnerships (MLPs) and midstream industries of the market. But after some setbacks, changes to tax structures, and the Fed’s monetary policy, MLPs and many midstream names were forgotten by investors.
But like a phoenix rising from the ashes, the midstream industry is finally getting its mojo back.
Cash is flowing and there are plenty of growth projects on the horizon. And with the Fed potentially cutting rates as early as September, the traditional high yielding industry could be poised for a break-out and return to its once superstar status. For investors looking for potentially high income, the midstream and MLPs make for a compelling choice.
