Get a High Dividend Income from Exotic Investments

Are you sick and tired of investing in all those blue chip income stocks and those boring oil and gas master limited partnerships? Looking for some exciting investments that still pay a high dividend?

MLPs

Well, you have come to the right place. WallStreetNewsNetwork.com has identified over half a dozen exotic master limited partnerships, most of which have yields of over 3.5%. A master limited partnership is a partnership that is publicly traded and trades like a stock. Most MLPs invest in oil and gas properties, so the "exotic" category is everything else.

Amusement Parks

One example is Cedar Fair (FUN), which generates high income from amusement parks and water parks. Doesn't this company have a great stock ticker symbol? The yield on the investment is 5.3%. The stock, actually the MLP unit, trades at 19.8 times trailing earnings, and 14.63 times forward earnings. For the latest quarter, the company reported a 7.4% drop in earnings year over year on flat revenues. However, it reported a 1% increase in net revenues and record year to date revenues of $939 million.

Trees

Another exotic MLP is Pope Resources (POPE) which is in the timber industry. The nice thing about this industry is that the inventory keeps going up in value, unlike most other types of inventory. The stock trades at 13.6 times trailing and 18.8 times forward earnings. The investment provides a decent yield of 3.7%.

Cemeteries and Fertilizer

Do you want to invest in cemeteries? How about fertilizer? Or toll roads or fracking sands? You can do it through MLPs, all of which are listed on the free list of exotic master limited partnerships at WallStreetNewsNetwork.com. Now you know how to spice up your portfolio.

Disclosure: Author didn't own any of the above at the time the article was written.

By Stockerblog.com

Hot Oil MLPs with High Incomes

Investors looking for high incomes often turn to MLPs or Master Limited Partnerships, and generally are companies in energy, primarily oil and gas exploration and production. According to WallStreetNewsNetwork.com, there are over a dozen Oil and Gas Exploration and Production MLPs, with yields ranging from 3.1% to 9.9%.

MLPs are investments that are similar to income royalty trusts, except that they are structured as limited partnerships. MLP's differ from high income stocks in several ways. Since they pass through income without being taxed at the corporate level, they avoid double taxation. In addition, tax deductions can be passed through to the holders of MLPs, providing sheltering of the MLP dividends.

But there are differences when you compare them to income royalty trusts. MLPs shouldn’t be put into a retirement plan because of the UBTI or Unrelated Business Taxable Income problem, which could jeopardize the tax deferred status of retirement plans. The UBTI issue is way beyond the scope of this article so you should certainly talk to your accountant about any and all tax consequences of MLPs. Also, MLPs don't send out 1099 forms, they send out a Schedule K-1 Form, and the income is reported differently on tax returns. This may mean extra hours and aggravation when you or your accountant prepare your taxes.

One example is Mid-Con Energy Partners, LP (MCEP), which pays a yield of 8.8%. The dividend is paid quarterly. This Dallas, Texas based company explores, develops, and produces oil and natural gas on properties in southern Oklahoma, northeastern Oklahoma, and parts of Colorado. The MLP trades at 11.9 times trailing earnings and 10.5 times forward earnings.

Pioneer Southwest Energy Partners L.P. (PSE), based in Irving, Texas, yields 8.2%. The company has a price to earnings ratio of 11.5 and forward PE of 10. Pioneer operates in the Spraberry field in the Permian Basin area of west Texas.

One high yield company that is actually structure as an LLC instead of a MLP is Linn Energy, LLC (LINE), which operates in the Mid-Continent, the Permian Basin, Michigan, California, and the Williston Basin. Linn pays a dividend rate of 6.8%. It has a forward PE of 24.9. It was the first publicly traded independent oil and natural gas limited liability company in January 2006.

In spite of the fact that Linn is an LLC, it is classified as a partnership for tax purposes, so a unitholder is considered a partner and receives a Schedule K-1. In regards to the taxation of the income, the company website says "In general, cash distributions received from LINN Energy are not taxable. You are typically only required to report in your tax return items of income, gain, loss, deduction or tax credit reflected on your Schedule K-1. However, if the cumulative cash distributions received from LINN Energy exceed your tax basis in the Company, you could be taxed on the amount exceeding your tax basis."

For a free list of all of the oil and gas exploration and production master limited partnerships including three that pay more than 9%, go to WallStreetNewsNetwork.com. The list can be downloaded, updated, and sorted.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

High Yield Master Limited Partnerships

There is a high income producing investment that is an unusual animal, called the Master Limited Partnership and also referred to as an Income Partnership. These investments are not corporations, not exchange traded funds, and not trusts such as real estate investment trusts. They are partnerships with a general partner and many limited partnership units which are traded on a major stock exchange.

Let's first start with the disadvantages. First, you won't get a 1099-DIV form for filing your taxes on the partnership income. You will instead receive a K-1 Form which involves more tax forms to attach to your Form 1040. This means that if you prepare your own taxes, it will take more time. If you have an accountant prepare your taxes, he or she may charge more due to the extra time involved with the K-1 . Also, you shouldn't invest in partnerships through a retirement plan such as an IRA due to Unrelated Business Income Tax issues (your tax preparer can provide you with more details).

Now the advantages. Partnerships can provide high yields which may be partly or completely tax sheltered. They distribute substantially all of their income, thereby avoiding double taxation. Income distributions are fairly high and are paid quarterly.

Most of these partnerships are producers and distributors of oil and gas. WallStreetNewsNetwork.com just updated its list of high yield US Master Limited Partnerships, and found over 15 with yields above 5%.

As an example, Boardwalk Pipeline Partners, LP (BWP), a natural gas pipeline owner and operator, yields 6.4% and trades at twenty times forward earnings. The company has been making quarterly payouts since 2006.

NuStar Energy L.P. (NS) stores transports, and markets fuels. It has a yield of 6.3%, and has a forward price to earnings ratio of 21. Quarterly distributions have been made since 2001.

Buckeye Partners LP (BPL) is an operator of petroleum product pipelines. The yield is 5.7%, paying distributions since 1994, and the forward PE is 20.

For a free downloadable list of these high yield partnerships with yields as high as 7%, go to WallStreetNewsNetwork.com.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com