MLPs are investment vehicles 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. Plus, MLPs can pass through tax deductions.
One example is Terra Nitrogen Company, L.P. (TNH) pays a yield of 7.9%. This Sioux City, Iowa based company produces and distributes nitrogen fertilizer products, such as anhydrous ammonia and urea ammonium nitrate solutions. The company, which trades on the New York Stock Exchange, has a price to earnings ratio of 13.1. Earnings for the latest quarter were up 18.3% on relatively flat revenues. Dividends have been paid since April of 1992.
Stonemor Partners LP (STON) is in the business of operating cemeteries across the United States. This Levittown, Pennsylvania based company was founded in 1999, and has cemeteries in 26 states and funeral homes in 18 states. The MLP yields 9.8% and pays quarterly. Earnings for the latest quarter were negative on a 2.3% increase in revenues.
Cedar Fair LP (FUN) has a great stock ticker symbol. I owns 11 amusement parks, seven water parks, and five hotels. The company was founded in Sandusky, Ohio in 1983. The company trades at 14.6 times trailing earnings, 12.7 times forward earnings, and a yield of 4.9%. Earnings were up an incredible 748.2% on an amazing 25.7% boost in sales.
For a free list of all of the top exotic master limited partnerships including one which pays more than 13%, which can be downloaded, updated, and sorted, go to WallStreetNewsNetwork.com.
Disclosure: Author did not own any of the above at the time the article was written.
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