The Alerian Master Limited Partnership ETF ( AMLP ) is one of the best vehicles through which to get exposure to master limited partnerships [MLPs]. MLPs, which have some of the highest yields out of all types of publicly traded securities, are very desirableAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am ...

For reasons I have not yet come to grips with, I’ve been saying this phrase a lot in 2026: “I’m old enough to remember when…” And now, I’ll do it again. Because I’m old enough to remember when very few investors knew what master limited partnerships (MLPs) were. Or, simply confused them with private funds. But this industry has come a long way in terms of investor recognition. And from my chart work, it looks poised to again capture some hearts. One in particular, a stalwart in the group, is the Alerian ...

Core Insights - Master limited partnerships (MLPs) provide significant yields, with Enterprise Products Partners yielding 6.7% and Energy Transfer yielding 7.4%, compared to the S&P 500's 1.1% dividend yield [1] Group 1: MLPs Overview - MLPs offer advantages such as high passive income but require investors to deal with Schedule K-1 tax forms, complicating tax filings [2] - The Alerian MLP ETF tracks the Alerian MLP Infrastructure Index, providing diversification across energy midstream sector MLPs and has an 8% distribution yield based on the last 12 months [4] Group 2: Alerian MLP ETF Details - The Alerian MLP ETF charges an expense ratio of 0.85%, which is higher than many oil stock ETFs, but offers tax simplicity by processing K-1s and providing a single Form 1099 to shareholders [5] - The fund's asset allocation includes 29.4% in petroleum pipeline transportation, 24.3% in natural gas pipeline transportation, and 21.1% in gas gathering and processing [7] Group 3: Top Holdings and Performance - The ETF has significant exposure to Energy Transfer, which constitutes 12.5% of its assets, and generates about 90% of its earnings from fee-based sources, ensuring stable cash flow for high-yield distributions [8]

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]

Core Insights - JPMorgan Chase Financial Company has announced a quarterly coupon amount of $0.5006 per note for the Alerian MLP Index ETN (AMJB), reflecting a 6.6% annualized current yield based on the closing price on November 20 [1][2] Group 1: Coupon and Payment Details - The ex-dividend date and record date for AMJB are set for December 1, with the payment date on December 9 [2] - AMJB matures on January 28, 2044, and tracks the Alerian MLP Index (AMZ), which is a cap-weighted composite of energy infrastructure MLPs [2] Group 2: Structure and Tax Implications - AMJB is structured as an exchange-traded note (ETN), which is an unsecured debt security that does not own the underlying assets, promising returns linked to the index [3] - The ETN structure eliminates tracking errors associated with ETFs but introduces credit risk based on the issuer's creditworthiness [3] - Coupons from ETNs are treated as ordinary income for tax purposes, making them suitable for tax-advantaged accounts [4] Group 3: Investment Considerations - AMJB provides a means for investors to access the yield potential of energy infrastructure without the administrative burden of K-1 tax forms [4] - The variable coupon reflects the cash distributions of the underlying MLPs, emphasizing the income-generating capabilities of the segment in the current market [4]

Core Insights - Energy Transfer and Enterprise Products Partners are leading energy midstream companies in the U.S. with attractive income yields of 7.8% and 6.9% respectively, significantly higher than the S&P 500's yield of 1.2% [1] Group 1: Financial Performance - Energy Transfer generated $1.9 billion in cash during Q3, covering its distribution by approximately 1.7 times and retaining over $750 million [4] - Enterprise Products Partners generated $1.8 billion in cash during Q3, covering its distribution by 1.5 times and retaining $635 million [7] Group 2: Growth Outlook - Energy Transfer plans to invest $4.6 billion in growth capital projects this year and an additional $5 billion in 2026, with a significant project being the $5.3 billion Desert Southwest Expansion expected to complete by Q4 2029 [5] - Energy Transfer is also developing various expansion projects, including a large-scale LNG export terminal and oil pipeline expansions, enhancing its growth prospects [6] Group 3: Valuation and Payout - Enterprise Products Partners pays out a higher percentage of its stable cash flow compared to Energy Transfer but has a lower yield due to its higher valuation, trading at about 12 times earnings compared to Energy Transfer's valuation of approximately nine times earnings [9]

Core Insights - Midstream energy stocks are involved in the processing, transportation, and storage of crude oil, natural gas, and natural gas liquids, operating in a sector less affected by spot pricing due to long-term contracts [1][5] - Master limited partnerships (MLPs) are highlighted as a strong investment option for energy exposure, offering substantial and dependable dividends, particularly from midstream companies [2][5] - A screening of midstream MLPs identified four top companies that provide high distributions to shareholders, emphasizing their appeal for income-focused investors [3] Industry Overview - Energy MLPs are attractive investments due to their structure and market position, typically offering annual distributions of 5% to 8% by distributing most cash flow to unitholders, thus providing a steady income stream [5] - MLPs benefit from stable, fee-based revenues linked to energy transportation, which mitigates risks associated with commodity price volatility [5] Company Spotlight - Cross America Partners L.P. has shown significant growth and is expected to continue this trend, offering a high dividend yield of 10.60% [6] - The company operates through two segments: wholesale distribution of motor fuel and retail sales at various sites, including convenience stores [7]

Core Insights - Texas has a long history of wealth generated from natural resources, particularly oil and gas, which has led to the establishment of funds that provide financial benefits to its citizens [1][2] - The Texas Royalty Plan allows individuals, even non-residents, to receive payments from oil and gas revenues, with some individuals reporting substantial earnings [6][7] - The state is experiencing a significant boom in oil production, with a notable increase in annual output due to advancements in shale extraction [8][15] Texas Oil and Gas Wealth - Texas has two major funds, the Permanent School Fund and the Permanent University Fund, which are financed by oil royalties and support educational initiatives [2] - The state has seen a 577,990% increase in oil production over the past 17 years, contributing to the financial benefits available to citizens [8] - The Texas Royalty Plan has consistently raised payments for 28 years, indicating a stable income source for participants [7][15] Investment Opportunities - The Texas Royalty Plan is associated with Master Limited Partnerships (MLPs) that are required to distribute 90% of their earnings to shareholders, offering high dividend yields [10][22] - Current yields for these investments range from 6.8% to 9.6%, which is significantly higher than average stock market dividends [11][14] - Companies like Enterprise Products Partners (EPD), Energy Transfer (ET), and Western Midstream Partners (WES) are highlighted as potential investment opportunities within the Texas oil sector [24][26] Market Dynamics - Texas is becoming a hub for data centers due to its cheap and abundant energy, particularly natural gas, which is essential for powering these facilities [19][20] - The state's energy infrastructure is expanding, with a record production of 12.62 trillion cubic feet of natural gas anticipated in 2024, further supporting the growth of the Texas Royalty Plan [20] - Legislative efforts are underway to enhance Texas's digital infrastructure, positioning the state as a leader in the AI data center market [18]

Group 1 - The Alerian MLP ETF (AMLP) has reached a significant milestone after years of providing simplified exposure to Master Limited Partnerships (MLPs) [1] - MLPs are recognized for their attractive income potential, making them appealing to investors seeking yield [1] - The ETF has successfully navigated market challenges and continues to attract investor interest [1]

Core Viewpoint - The article highlights three master limited partnerships (MLPs) that offer high yields, strong cash flow, and growth potential, making them suitable for income-focused investors Group 1: Energy Transfer - Energy Transfer has a yield of 7.6% and is entering a growth phase with significant projects, including a $5.3 billion Desert Southwest pipeline to transport natural gas from the Permian Basin to Arizona and New Mexico [2] - The company is progressing on the Lake Charles LNG export project, having partnered with MidOcean Energy and secured several offtake deals, with $5 billion in growth capital expenditures planned for this year [3][4] - Energy Transfer maintains a solid financial foundation with a distribution coverage ratio of 1.7x and has raised its distribution for 15 consecutive quarters, expecting 3% to 5% annual growth [4] Group 2: Enterprise Products Partners - Enterprise Products Partners offers a 7% yield and has increased its distribution for 26 consecutive years, with a strong coverage ratio and controlled leverage [5][6] - The company plans to spend between $4 billion and $4.5 billion in growth capital expenditures this year, a significant increase from $1.6 billion in 2022, with growth projects expected to come online soon [7] - Enterprise's cash flow is primarily from fee-based contracts, ensuring stability and a clear growth trajectory [5][6] Group 3: Western Midstream - Western Midstream provides the highest yield at 9.5%, supported by steady cash flows and disciplined management, with over 40% ownership by parent company Occidental Petroleum [9] - The company is expanding its produced water business, with significant projects like the Pathfinder produced water system and the North Loving natural gas processing plant [10] - Western Midstream's recent $2 billion acquisition of Aris Water Solutions is expected to be immediately accretive, enhancing its cash flow visibility and operational synergies [11][12]