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Pros And Cons Of Pipeline Master Limited Partnerships

Monday, July 26, 2010 - 5:31 AM
Kiplinger article describes the pros and cons of Pipeline MLPs:

Some pros:
  • Marvelous ten-year returns and often yield 6% or higher
  • Usually, 90% of the payout is tax-deferred
Some cons:
  • If credit gets expensive, interest expenses will cut into dividend payments
  • Risk that there will be excess infrastructure that will hurt business
  • Tax situation is not easy
Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
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