MLPs combine the tax benefits of a private partnership with the liquidity of a publicly traded company. [Energy and Capital Header] Practical Investment Analysis for the New Energy Economy Income Is King Right Now â Check Out These MLPs Jason Simpkins | Sep 05, 2022 Sometimes, when everything is down, the best thing you can do is start locking in income plays. This is because low share prices equal high yields that pay out regardless of what the market is doing. Then when things eventually come back up, you can cash in on the capital gains â or you can just keep collecting at the same high yield you bought in at. So right now, with the S&P 500 down roughly 17% from where it started the year and the future uncertain, itâs a great time to go bargain shopping for some high-yield stocks. And if itâs income youâre looking for, there are few investments better than master limited partnerships, or MLPs. MLPs are great because they have a unique investing status that allows them to trade in units rather than shares. This is because they were created by Congress in the 1980s to benefit companies that transport and store oil and gas â pipeline companies, essentially. Whatâs great about these companies is that they get paid on volume, so it doesnât matter whether oil and gas prices go up or down. All that matters is that the fuel flows. The more fuel they move, the more money they make. Turn the Global Chip Crisis to Your Benefit TODAY The microchip shortage is causing industries to lose hundreds of billions of dollars... And itâs impacting YOU financially. The prices of everyday tech products like laptops, phones, printers, and graphics cards are as much as $350 more expensive. Itâs absolutely ridiculous... But there is a silver lining. Because [Iâve uncovered a TINY, virtually unheard-of company...]( Which is at the very CENTER of Americaâs initiative to solve this crisis. Investors who get in on the ground floor today could rake in gains as high as 9,737%... Which turns every $2,500 invested into $245,925! [Get all the details now.]( But hereâs the thing: MLPs donât pay taxes at the company level. Instead, they pass them directly to the unit holders, who are effectively partners in the business. That skirts the issue of double taxation that corporate dividends pay. That is, corporations pay taxes (theoretically, anyway) and then investors pay taxes on the dividends. But with MLPs, you only end up paying income taxes on the money they yield. Better still, in many cases MLP distributions are tax-deferred, which means the taxes arenât paid until the investor sells their position. And unless the unit holder owns a large position, their share of income is relatively small, so they may not even have to file in certain states due to minimum income limits. So basically, MLPs combine the tax benefits of a private partnership with the liquidity of a publicly traded company. The income is juicy too as MLPs typically yield somewhere between 5%â10%. A good example would be Plains All American Pipeline LP. [QUIZ] 46 BILLION Barrels of Oil?! A massive $5.9 trillion oil boom is about to take place. Three tiny companies just acquired the rights to mine an untapped patch holding 46 billion barrels of oil in a mystery location... And it even has the potential to reach $9 trillion in value if prices reach $200 per barrel! So which country do you think will lead this upcoming oil surge? - Venezuela
- Saudi Arabia
- Canada
- Russia Think you know the answer? [See if youâre right!]( The company delivered better-than-expected second-quarter results with net income of $203 million and net cash from operating activities of $792 million. The company also raised its full-year 2022 adjusted EBITDA guidance to approximately $2.375 billion, which is $175 million higher than managementâs initial February guidance. Thatâs a great place to start, no doubt. But if you really want to nail down some high-yielding energy investments that are truly capable of overcoming a bear market, you should check out the latest report from my friend and colleague Keith Kohl. Keith is a bona fide energy expert. I have been reading his Energy Investor newsletter for years, and I constantly go to him with questions about everything from oil to gas to nuclear to coal⦠Literally anything energy related, heâs got the answers. Anyway, [his latest report details FOUR energy income investments]( â two of which are MLPs. Iâve read it, and itâs outstanding. So again, [check that out here if you want to make some real money](. Fight on, [Jason Simpkins Signature] Jason Simpkins [follow basic]([@OCSimpkins on Twitter]( Jason Simpkins is Assistant Managing Editor of the Outsider Club and Investment Director of Wall Street's Proving Ground, a financial advisory focused on security companies and defense contractors. For more on Jason, check out his editor's [page](. *Follow Outsider Club on [Facebook]( and [Twitter](. [Fb]( [Li]( [Tw]( This email was sent to {EMAIL}. You can manage your subscription and get our privacy policy [here](. Energy and Capital, Copyright © 3 East Read Street, Baltimore, MD 21202. Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info [here]( including our privacy policy and information on how to manage your subscription. If you are interested in our other publications, please call our customer service team at [1-877-303-4529](tel:/18773034529).