Wednesday, November 18th, 2009
The National Association of Publicly Traded Partnerships has posted an excellent presentation which covers the basics of MLPs. I encourage everyone to read this document, as it contains updated, important information related to investing in master limited partnerships. You’ll find it an easy read and a fairly comprehensive piece of work (including good examples regarding taxes, etc.). As always, consult your tax advisor before you invest in MLPs to ensure you are getting the most out of your investments.
Posted in MLP Investing, MLPs | No Comments »
Sunday, November 15th, 2009
There are many things which make energy Master Limited Partnerships (MLPs) attractive investments. However, some of the advantages of these investments are overlooked. Of course, the most prominent is that MLPs aren’t plagued by the same double taxation that afflicts dividend paying stocks (tax is not paid at the entity / “corporation” level).
However, here are three additional benefits that are also often overlooked:
MLPs are also regulated by the Securities and Exchange Commission (SEC)
Just like stocks, MLPs are under the watchful eye of the SEC. This means they must also file annual and quarterly statements just like stocks of a public corporation, as well as notify investors of any material changes which affect the business.
MLPs must comply with Sarbanes-Oxley
Again, like publicly traded corporations, MLPs must comply with the enhanced accounting rules set in place by the Sarbanes-Oxley act.
MLPs offer a unique opportunity
Because they are currently overlooked by large institutional investors, the market for MLPs has room to grow. In fact, it is estimated that less than 10% of large institutions own MLP assets.
Posted in General, MLP Investing | No Comments »
The National Association of Publicly Traded Partnerships has posted an excellent presentation which covers the basics of MLPs. I encourage everyone to read this document, as it contains updated, important information related to investing in master limited partnerships. You’ll find it an easy read and a fairly comprehensive piece of work (including good examples regarding taxes, etc.). As always, consult your tax advisor before you invest in MLPs to ensure you are getting the most out of your investments.