Retirees Are Choosing AMLP Over Traditional Dividend Funds For One Clear Reason: Double The Income

Core Insights - The Alerian MLP ETF (AMLP) offers an attractive 8.29% dividend yield, significantly higher than traditional dividend stocks and the S&P 500 [2][4] - AMLP invests in master limited partnerships (MLPs) that operate critical energy infrastructure, allowing for higher cash flow distributions due to tax advantages [3][4] Investment Strategy - AMLP generates income by holding equity stakes in MLPs, which are pass-through entities that distribute most of their cash flow to unitholders [3][4] - The ETF's top six holdings account for 77% of the portfolio, providing concentrated exposure to industry leaders [3] Performance Metrics - Despite a 3.87% price decline, AMLP achieved a total return of 4.4% over the past year [4] - MPLX, the largest holding at 13.57%, recently increased its quarterly distribution by 12.5% to $1.0765 per unit, demonstrating strong financial health with a distribution coverage of 1.3x [7] - Enterprise Products Partners (EPD), holding 12.66%, has a history of 25 consecutive years of distribution increases, showcasing stability with a 1.22x coverage ratio [8]