Video: Alerian MLP ETF Provides Energy-Backed 7.7% Yield Without a K-1 Filing Headaches

June 18, 2024
  • 7.7% distribution yield (not tax advantaged) for MLPA.
  • Pipelines are experiencing substantial tailwinds from increased natural gas for electricity.
  • Limited natural gas pipeline expansions due to regulatory constraints allow existing pipelines to operate at or near full capacity.
  • Existing pipelines are able to have some pricing power as pipelines are the bottleneck with substantial gas at the wellhead needing transportation to end markets.
  • MLPA’s structure allows it to avoid annoying additional tax paperwork. You get the underlying LPs distributions but without a form K-1.