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These 10 MLPs Offer the Highest Yields

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Top ten MLPs by yield

MLPs are one of income investors’ favorite options due to the attractive yields they offer. While some MLPs like Enterprise Products Partners (EPD) and Magellan Midstream Partners (MMP) offer stable and steadily growing distributions, there are many others that offer very high yields. High yields are frequently associated with high risks. Investors expect to be compensated with higher yields to assume greater risks.

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In this series, we’ll discuss the top ten MLPs with the highest yields. We’ll compare the yields they offer, the reasons for the high yields, and if the yield is attractive considering the risks involved for each of these MLPs. The MLPs we discuss in this series are natural gas and crude oil midstream MLPs. We don’t discuss shipping and coal MLPs.

Here is a list of top ten natural gas and crude oil midstream MLPs offering the highest yields based on the latest quarter’s annualized distribution as of September 19, 2017:

  • Sanchez Midstream Partners (SNMP)
  • CSI Compressco (CCLP)
  • NGL Energy Partners (NGL)
  • Suburban Propane Partners (SPH)
  • USA Compression Partners (USAC)
  • USD Partners (USDP)
  • Alon USA Partners (ALDW)
  • American Midstream Partners (AMID)
  • Martin Midstream Partners (MMLP)
  • Energy Transfer Partners (ETP)

The above graph compares the yields of the ten highest-yielding MLPs with the Alerian MLP Index (^AMZ). Sanchez Midstream Partners (SNMP), CSI Compressco (CCLP), and NGL Energy Partners (NGL) are the top three MLPs with the highest yield.

In the next part, let’s take a closer look at five MLPs primarily involved in the gathering, processing, transportation, and storage of oil, gas, and related products:

  • Sanchez Midstream Partners (SNMP)
  • NGL Energy Partners (NGL)
  • USD Partners (USDP)
  • American Midstream Partners (AMID)
  • Martin Midstream Partners (MMLP)

We’ll analyze Energy Transfer Partners’ high yield in a later part.

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