Five MLPs to Bolster Your Portfolio

Last week, one of my Energy Investor readers expressed concern about his exposure to the wild swings of the market.

The minute he told me so, I had a feeling he took the risk factor a little too far…

The very next thing he asked was, “So how do I limit that risk?”

“Simple,” I said. “Start looking into a few safe, high-yielding MLPs.”

What are MLPs?

Simply put, a Master Limited Partnership is a limited partnership that trades like any other stock on the exchange.

The MLP consists of a general partner (that controls the operation) and limited partners.

Typically, these investments offer distributions that are paid out on a regular basis.

For us, there’s only one sector to start hunting for these annual yields…

You Can’t Beat Energy

Picking an MLP in the oil and gas industry is a no-brainer. After all, we can guarantee oil and gas consumption will be around for decades.

Forget about world demand for just a second…

Here in the United States, we’re heading back into record consumption levels:

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As far as natural gas is concerned, we’re already in record demand territory!

Considering oil and gas make up 62% of our total energy demand, even novice traders can recognize the potential profits that can be made over the next several decades…

We’ve been capitalizing on this notion for years.

Too Good to for Investors to Pass Up

You don’t have to tell us twice that there are huge opportunities here for individual investors.

Here’s the rub for most people: Generating these profits consistently takes an extraordinary amount of time and effort in your due diligence.

You may not have the time for boots-on-the-ground research or meetings with company execs and CEOs.

You may not have countless hours to spend checking — and double-checking — your potential investment.

You might not have the patience to sift through annual reports, ingesting every snippet of information…

But we do.

So aside from taking our advice when it comes to these little-known plays that are still under Wall Street’s radar, owning secure, high-yielding stocks only serves to strengthen your portfolio — and should be a staple for any individual investor.

Generally, I consider an annual yield of about 5% enough to warrant my attention.

Today let’s go beyond that range and talk about five Master Limited Partnerships (MLPs) beating the 5% standard.

Five MLPs to Bolster Your Portfolio

MLPs aren’t simply for conservative investors.

In fact, you’d be hard-pressed to find a better stock that can endure severe recessions.

What’s more, these stocks haven’t just weathered the economic storm since 2008 — many of them have managed to increase their payouts.

And as we mentioned before, our energy demand isn’t heading anywhere but up going forward.

Some of my favorite MLPs also happen to be in the oil and gas pipeline sector:

Each one of the MLPs above offers a safe, steady return — limiting your risk to the extreme volatility that has become a regular occurrence in today’s markets.

Anyone who has put a dime into the markets since 2008 understands the sort of unpredictability that can happen…

It’s enough to make the most bullish investors think twice. 

Remember to always try to balance your risk.

Until next time,

Keith Kohl

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A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.

For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.

Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.