Master Limited Partnerships

• When buying shares you become a partner rather than simply a stockholder.
• MLPs are required to pay 90% of earned income to its partners.
• Dividends typically range between 5%-10% annually.
• Income is not taxed at the corporate level…Double taxation avoided.
• Most MLPs are involved in the infrastructure needed to transfer energy (oil/natural gas).
• It’s important to look at past dividend payment history when evaluating MLPs.
• MLPs are not known for a high pace of share price appreciation…dividends are the main source of investment value.