The shares in dropdown MLP's go to new investors. While I think that the Shell/SHLX will be interesting, the low projected yields seem to indicate that this is going to be sold at full price.
I didn't see the projected yield. What was it?
The MLPs I own generally have nice yields, many used to be above 10% but due to share price appreciation they are now around 8%-9%. CPLP, NMM, MEMC. The shippers (CPLP and NMM) had a nice move recently, perhaps due to the news that the US will begin exporting some type of light oil for the first time in years.
I just bought CVRR the other day, it appears to yield as much as 15%, but evidently their dividend is variable depending on actual quarterly results, so the 15% yield assumes the previous dividend in perpetuity, which is probably not correct. They're a refiner so it tanked on this oil export news, that's when I bought it.
I used to own ETE which doesn't yield much (2.6%!), but it appreciated by over 100% since I bought it. I thought that was a bit much so I sold it, but it just keeps going up.
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What other MLPs do you think are worth a look at current levels? I like the idea of them not paying taxes and we get the nice yields. |
