"The hunt for high-yield in the agriculture sector only turns up a few names that fit our appetite for fat dividends and the potential for serious upside capital appreciation," says Bryan Perry.

The growth & income specialist and editor of The Cash Machine explains, "That said, let's get long shares of Terra Nitrogen Co. LP (TNH), a master limited partnership which offers a current yield of 10.1%.

The fertilizer sector is not only resilient, but now has an M&A premium attached to it because of the hostile bid for Potash by BHP Billiton.

Continue reading Terra Nitrogen (TNH): High Growth in Fertilizers

Terra Nitrogen (TNH): High Growth in Fertilizers originally appeared on BloggingStocks on Thu, 07 Oct 2010 11:00:00 EST. Please see our terms for use of feeds.

"The Cushing MLP Total Return Fund (SRV) is a closed-end fund that invests in master limited partnerships (MLPs), MLP bonds, and natural resource companies that are not publicly traded," notes income specialist Carla Pasternak.

The editor of High-Yield Investing explains, "In addition to providing diversification, SRV provides a huge advantage over investing in individual MLPs.

"Unlike individual MLPs, SRV is classified as a corporation for tax purposes and doesn't generate a K-1 form or unrelated business taxable income, which can be taxable in an IRA. In short, SRV offers the high income of MLPs without the tax hassle.

Continue reading Cushing MLP Total Return: Partnership Profits

Cushing MLP Total Return: Partnership Profits originally appeared on BloggingStocks on Thu, 02 Sep 2010 10:00:00 EST. Please see our terms for use of feeds.

Energy-focused master limited partnerships (MLPs) are attracting a growing number of investors. These MLPs are mostly energy companies that own and operate pipelines, primarily for natural gas and oil. Oil producers who use these facilities pay rent to MLP companies.

Investors who buy into these MLPs are rewarded with a hefty payout, which is the hook that lures them in. The Alerian MLP index tracks this group of companies. The index has been up about 11% a year. This year, it is up 7%. Compare this the S&P stock index, which is down 2.6% this year.

Continue reading Energy Partnerships Attract Investors

Energy Partnerships Attract Investors originally appeared on BloggingStocks on Tue, 10 Aug 2010 11:30:00 EST. Please see our terms for use of feeds.

"In this low-rate environment, master limited partnerships (MLP) have attracted a great deal of investor attention which, in turn, piques the interest of asset managers," says Benjamin Shepard.

The contributing editor to Personal Finance explains, "Three new MLP-focused funds have launched this year, and several more are in the works that will track specific segments of the market.

"Here, we look at the JPMorgan Alerian MLP Index ETN (AMJ), the UBS E-TRACS Alerian MLP Infrastructure Index (MLPI) and the UBS E-TRACS 2x Leveraged Long Alerian MLP nfrastructure Index (MLPL).

Continue reading Investing in Energy MLP funds

Investing in Energy MLP funds originally appeared on BloggingStocks on Tue, 03 Aug 2010 12:40:00 EST. Please see our terms for use of feeds.

The editor of The Cash Machine explans, "I'm speaking of the Cushing MLP Total Return Fund (SRV), a NYSE listed closed-end fund that owns most of the leading gas Master Limited Partnerships.

The objective of the Cushing MLP Total Return Fund is to obtain a high after-tax total return from a combination of capital appreciation and current income. The fund will try to accomplish this by investing at least 80% of its net assets in MLPs.

Continue reading Cushing MLP Total Return: A 'Cash Machine' in Gas Partnerships

Cushing MLP Total Return: A 'Cash Machine' in Gas Partnerships originally appeared on BloggingStocks on Fri, 09 Jul 2010 11:00:00 EST. Please see our terms for use of feeds.

The editor of Dividend Genius newsletter explains, "The fundamentals for the energy company here have not changed, if anything they remain as strong as ever and the decline in the units is more the result of Enterprise being viewed as an energy name, not weakness in the company's business.

"Case and point: Enterprise was easily able to tap the capital markets in May, selling $400 million in notes due in 2015 at a fixed rate of 3.7%, $1 billion in notes due in 2020 at a fixed rate of 5.2% and $600 million in notes due in 2040 with a fixed rate of 6.45%. Of course, those yields pale in comparison to the 7.1% you get by owning Enterprise units directly.

Continue reading Enterprise Products (EPD): A Profitable Niche in Shale

Enterprise Products (EPD): A Profitable Niche in Shale originally appeared on BloggingStocks on Wed, 30 Jun 2010 12:45:00 EST. Please see our terms for use of feeds.

Teekay Offshore Partners (TOO), a master limited partnership, transports and stores crude oil to offshore oil drillers; it operates the world's largest fleet of shuttle tankers, which carry oil from offshore production and storage facilities to onshore terminals," notes income expert Carla Pasternak.

The editor of High Yield Investing explains, "The partnership was designed to increase distributions, both to its parent company and to unitholders like you and me.

"The company holds a 75% share of the UK North Shore shuttle market and is the largest shuttle operator in Brazil. The partnership also operates a fleet of floating storage and floating storage production units, as well as crude oil tankers that carry oil across the seas.

Continue reading High Yield from Teekay Offshore Partners (TOO)

High Yield from Teekay Offshore Partners (TOO) originally appeared on BloggingStocks on Tue, 22 Jun 2010 10:40:00 EST. Please see our terms for use of feeds.

"You're probably having a tough time these days if you live off the interest from your investment portfolio; money market accounts are now yielding a paltry 0.76%," observes fund specialist Ron Rowland.

The contributing editor to Money and Markets explains, "There is no big mystery why this is happening ... Ever since the banking system started blowing up back in 2008, Ben Bernanke and his Federal Reserve have kept short-term interest rates at historic lows. That's great for bankers, terrible for savers.

"Many investors are watching their income slide. These low rates have income-investors looking for new sources of steady interest and dividends. The alternatives are few. And I'm concerned that some people are so desperate that they're risking their principal in ways they don't even realize!

Continue reading Income Partnerships: ETNs That Invest in MLPs

Income Partnerships: ETNs That Invest in MLPs originally appeared on BloggingStocks on Fri, 14 May 2010 12:00:00 EST. Please see our terms for use of feeds.

"Kinder Morgan Energy Partners L.P. (NYSE: KMP) is a paragon of consistency; the stock continues to rise and the company continues to deliver on its expectations," says Jack Adamo.

In his Insiders Plus newsletter, he explains, "The master limited partnership has made great strides in cost controls to compensate for the weak economic environment. When things turn around, it could really take off."

"KMP is one of the largest and most respected pipeline and energy storage LPs in North America. It operates or owns interests in more than 26,000 miles of pipelines and 170 terminals.

Continue reading Kinder Morgan Energy (KMP): 'Paragon of consistency'

Kinder Morgan Energy (KMP): 'Paragon of consistency' originally appeared on BloggingStocks on Tue, 04 Aug 2009 11:40:00 EST. Please see our terms for use of feeds.

This post is part of a 12-article feature that can be read here: Today's best income ideas.

"Master limited partnerships have been among the market's most stable and reliable groups; but 2008 was a painful exception, with the benchmark index down nearly 37%, the worst performance in its 13-year history," says Elliott Gue.

In Personal Finance he now sees a "great opportunity" for investors to takes positions in this high-yielding sector. Here's a trio of favorite investment plays in the MLP arena.

Continue reading Pipeline profits: High yields from MLPs

Pipeline profits: High yields from MLPs originally appeared on BloggingStocks on Mon, 02 Mar 2009 08:30:00 EST. Please see our terms for use of feeds.

With stock prices near decade lows and fear at generational highs, many market participants are looking for harbors in the storm -- and turning their eye from high risk growth stock opportunities to what are generally more conservative income ideas.

For those looking to broaden their holdings to include yield-generated income, we turned to a dozen leading newsletter advisors who in turn offered a wide variety of income-oriented ETF and fund favorites.

Yes, fixed income holdings have their own risks. But in general, a diversified portfolio -- balanced between stocks and bonds -- has proven a more defensive posture. In addition, the selections in this report are funds and ETFs; as such the investments themselves are diversified among many holdings.

Continue reading Today's best income ideas: A dozen experts look for yield

Today's best income ideas: A dozen experts look for yield originally appeared on BloggingStocks on Fri, 27 Feb 2009 16:35:00 EST. Please see our terms for use of feeds.

This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.

"Given Obama's statements regarding raising qualified dividend and long-term capital gains, tax-deferred dividend income, like that provided by master limited partnerships (MLPs) such as Kinder Morgan Energy Partners (NYSE: KMP), should look very attractive," Carla Pasternak, editor of High Yield Investing.

"Under Obama, the current Bush tax cuts would appear to have little likelihood of being extended, suggesting that dividends will again be taxable as ordinary income, at a tax rate of up to 35%. Capital gains will also be taxable at the top rate of 20%.

"However, the corporate structure of master limited partnerships generate cash flow that's considered a return of capital. Instead of being taxed as a regular dividend, returns of capital instead reduce your cost basis -- meaning you won't have a tax liability until you sell the security.

"Typically, MLPs pay out around 75-90% of their distribution as tax-deferred return of capital. The balance is treated as taxable income, even in an IRA type of account. For that reason, MLPs are suited for a taxable brokerage account.

"Almost any tax-advantaged MLP could protect your portfolio from the higher tax rates. I've zeroed in on Kinder Morgan because of its superior dividend yield of around 7.5% and strong dividend growth history fueled by growing cash flow.

"Kinder Morgan is one of the largest owners and operators of energy-related pipelines and storage facilities in the U.S.

Continue reading Obama stock: Boost yields with Kinder Morgan MLP (KMP)

Obama stock: Boost yields with Kinder Morgan MLP (KMP) originally appeared on BloggingStocks on Thu, 09 Oct 2008 09:50:00 EST. Please see our terms for use of feeds.

"We're continuing to emphasize conventional energy, solar, shipping, agriculture, and commodities," says Harry Domash, who adds, "But one industry we've overlooked so far is coal."

In his Winning Investing, he explains, "This month, we're adding two coal industry picks. One, a short-term play to capture the action in hot coal mining stocks, and the other, a long-term dividend-paying investment."

"We've avoided coal primarily because environmentally speaking, coal is bad news. Coal is mostly used to generate electricity and to power steel plants. Crude oil prices are so high because supply can barely meet demand.

"Think about what would happen to oil prices if coal wasn't available. Due to increasing global demand, coal prices are moving up dramatically and it doesn't make sense for us to ignore that.

"For longer-term investors, we recommend Natural Resource Partners (NYSE: NRP), a master limited parternship. The MLP owns coal properties in the Appalachia, Illinois Basin, and the Western U.S. NRP leases its properties to mine operators.

Continue reading Double play on coal: For investors and speculators

Double play on coal: For investors and speculators originally appeared on BloggingStocks on Mon, 23 Jun 2008 11:35:00 EST. Please see our terms for use of feeds.

"Contrary to popular belief, CO2 isn't simply a useless pollutant; in fact, the gas is used to produce oil via a technique known as a CO2 flood," says Neil George and co-editor Elliott Gue in Personal Finance.

To invest in the trend toward increased usage of CO2 floods, the advisors look to the leader in storage and transportation of this gas, Kinder Morgan Energy Partners (NYSE: KMP), a master limited partnership (MLP).

The advisors explains that CO2 gas is already used to produce more than 200,000 barrels of oil per day in the US alone, employing the CO2 flood. This involves pumping CO2 under pressure into oilfields to squeeze additional production out of older, depleted fields.

Says George and Gue, "With oil prices above $60, there are plenty of opportunities for producers to further expand the use of CO2 floods." They add, "That's great news for companies that handle the transportation and storage of CO2 for enhanced oil production." Topping that list, the suggest, is Kinder Morgan Energy Partners, the largest transporter and marketer of CO2 in the US.

Continue reading Kinder Morgan: Profits from CO2

Kinder Morgan: Profits from CO2 originally appeared on BloggingStocks on Wed, 13 Jun 2007 13:15:00 EST. Please see our terms for use of feeds.