The energy sector has delivered some negative dividend news this year, but some market observers still see opportunities for reliable income with master limited partnerships, including some residing in the ALPS Alerian MLP ETF (NYSEArca: AMLP).
AMLP seeks investment results that correspond generally to the price and yield performance of its underlying index, the Alerian MLP Infrastructure Index. The index is comprised of energy infrastructure MLPs that earn a majority of their cash flow from the transportation, storage, and processing of energy commodities.
In an interview with Lawrence Strauss of Barron’s, Morgan Stanley’s Devin McDermott points to several MLPs with midstream exposure that can still deliver the goods for income investors.
“Those include Magellan Midstream Partners (MMP) and Enterprise Products Partners (EPD), both of which are master-limited partnerships—popular income vehicles, at times. Those two MLPs were recently yielding 11.8% and 11%, respectively,” according to Barron’s.