Description
Similar to the dividend policy of a public company, an MLP will set a quarterly cash distribution policy per unit. This typically consists of a Minimum Quarterly Distribution (MDQ) as well as additional targets above the MDQ. Distributions are made to the LP unitholders as well as the GP (with the bulk of distributions going to unitholders). The Cash Distribution Per Unit metric measures the total amount of the distribution divided by the number of outstanding units.
Calculation
DPU = Total Cash Distributions Paid / Number of Outstanding Units