MLP

hopn

Look into AMLP or MLPX for etf exposure to MLPs. Both will not require a K1 come April. Or if you want to roll with individual MLP... EPD should top of your list. Then look for ROC type ETFs like QQQi or equivalent. Reminder... im mo financial advisor and these are just suggestions. Im 51 with around 2.3m in Roth 401k and Roth IRA. The above mentions are on my dividend list.

Organic_Gas4197

Exactly - I have MLP in a taxable account, have used an ETF in my IRA.

skilliard7

>First off... Is that your source for this info? There are suddenly hundreds of articles that randomly spout the 1-3 year lifespan of GPUs (but don't provide sources). That's just the first source I could find to quantify my anecdotes, it's not my only source. >Secondly. If you think about the consequences of the depreciation cycle as you've described it, you're saying the same thing I'm saying. You're just coming to a different conclusion. The conclusion is what matters though, right? 1. Many large companies do not have enough power to deploy all of their new GPUs. If that is the case, they probably already ripped out their older, less efficient GPUs to prioritize their more efficient, higher earning newer GPUs. https://www.datacenterdynamics.com/en/news/microsoft-has-ai-gpus-sitting-in-inventory-because-it-lacks-the-power-necessary-to-install-them/ https://www.bloomberg.com/news/articles/2025-11-10/data-centers-in-nvidia-s-hometown-stand-empty-awaiting-power 2. If companies are taking GPUs older than a couple years out of service, then it raises into question their depreciation schedule. 3. To adjust for declining revenues, tech companies really should utilize accelerated depreciation in the first 2-3 years, followed by slowed depreciation for the last 2-3 years. This would better capture the declining revenue that the product makes. Their current approach of a flat depreciation schedule overstates profits. >Thirdly: it's important to understand the distinction in use of GPUs and CPUs. GPUs are used for the initial training of LLMs. But heavy use is not required if them for the duration of their use, after training models is complete. 1. most AI workload is inference, not training. 2. You can't run intensive AI applications on a CPU. You need a device with large amounts of paralell compute, and lots of high speed memory(generally HBM). A CPU can run lighter models like a simple linear regression model, MLP classification model, etc. But not huge models.

AllThingsMathematics

Never even heard of this fund until now! Cool. Is it an MLP? I see LP in the name

D_Pablo67

JEPI and JEPQ are both covered call ETFs from JPMorgan that pay high monthly dividends and track the S&P 500 and NASDAQ 100 respectively. My four top dividend payers are: Realty Income (O), a REIT that pays interest income monthly and a Dividend Aristocrat. Federal Realty Investment Trust (FRT), a REIT that pays interest income quarterly and is a Dividend Aristocrat. Enterprise Products (EPD), a pipeline MLP that pays a quarterly dividend taxed as ordinary income and is a Dividend Aristocrat. Energy Transfer (ET), a pipeline MLP that pays a quarterly dividend taxed as ordinary income. If you buy all of these you will have a balanced portfolio with growth potential and good monthly income.

2Hosslovescash

REITS and MLP’s can provide the yield you’re looking for, but also have risk of course.

DaDa462

MLP distributions beg to differ, you are taxably in at 0 if you have held long enough 

Nzain1

This is a team of professionals that grew and sold MILLENNIAL LITHIUM CORP from exploration stage. They also just finished up with MLP.V and are focused on NILI.V now. We have just begun. Compare MLP.V chart from when they did their last .40 warrant life offering to now with NILI.V just finishing its last .40 warrant. MLP.V grew 600% since then and that was Feb of this year. Hold onto your seats, Ross Jennings and Graham Harris are driving this spaceship straight to the moon.

Exciting-Insect3957

CD's may not be the only options. I use money market, on cash in broker accounts, (4%}, High quality preferred stocks (5-6%), MLP 6-8%, not taxable income. This is not new, I have been doing it for the past 3 years, but moving more now than before. As interest rates have declined, I have been moving more cash to preferred stock. Not financial advice, just my plan.

Daily-Trader-247

MLP and BDC are down now. Both probably good long term holdings

The-Goat-Trader

Midstream has been my go-to hedge/balance in energy. It’s a lot steadier than the broad energy ETFs and big oil companies, at least over the past 5 years. I like the Alerian MLP index products — AMLP for straight exposure, or even MLPR (1.5x leveraged) if you want some extra juice. TPYP (North American pipeline ETF) has also held up really well post-2022 and seems less tied to day-to-day oil price swings. If you’d rather pick single stocks, just look at the top holdings of AMLP or TPYP — that’s basically the who’s who of midstream. Solid cash flows, nice distributions, and you don’t have to stress as much about crude bouncing between $60–80.

fakerfakefakerson

Citadel, MLP, P72

Memeshiii

# 3. Diesel Macro Tailwinds * U.S. diesel inventories at 20-year lows. * Exports steady above 1.5M b/d. * Crack spreads holding $32–$42/bbl, far above norms. * DK’s Permian-sourced diesel-heavy slate = structural margin advantage. # 4. Embedded Midstream Value * DK owns **64% of DKL**, a midstream MLP yielding 11%. * DKL trades at 10x EV/EBITDA, below peer multiples. * Spin, sale, or re-rating would surface >$1.5B NAV, essentially free inside DK equity today. # 5. Insider Alignment * CEO, COB, directors actively buying shares, not selling. * Locked float + short interest creates a reflexive setup. # Wolfe Research Upgrade (Sept 2025) * **Rating:** Outperform (from Peer Perform) * **Price Target:** $40 Base, $70 Blue Sky * **Thesis:** Market has only partially priced SRE approvals. * **Scenario 1 (Base):** SREs extended 2025–28 = +$13/share value. * **Scenario 2:** DK optimizes feedstock mix for further exemptions. * **Scenario 3 (Blue Sky):** Trump-era EPA scoring persists = 100% of market cap added in cash relief.  Importantly, Wolfe’s $40–$70 valuation **excludes DK’s $12B refining business**, meaning the call is built on cash + SRE relief alone. # Why Market Hasn’t Rerated Yet * Algo mispricing: models DK as if it carries DKL’s $3B debt. * Analysts slow to assign credit for RIN refunds. * Legacy bias: DK long seen as weaker vs. peers, despite diesel leverage and cash surge. * Float dynamics: 111% locked ownership + short interest distort price discovery. #

Memeshiii

# 3. Diesel Macro Tailwinds * U.S. diesel inventories at 20-year lows. * Exports steady above 1.5M b/d. * Crack spreads holding $32–$42/bbl, far above norms. * DK’s Permian-sourced diesel-heavy slate = structural margin advantage. # 4. Embedded Midstream Value * DK owns **64% of DKL**, a midstream MLP yielding 11%. * DKL trades at 10x EV/EBITDA, below peer multiples. * Spin, sale, or re-rating would surface >$1.5B NAV, essentially free inside DK equity today. # 5. Insider Alignment * CEO, COB, directors actively buying shares, not selling. * Locked float + short interest creates a reflexive squeeze setup.

Important_Fennel4636

The SP is so concentrated that the top 10 are \~40% of the index. About 25% of the index is pure garbage with stagnant to no growth, about 10% is in a dying/shrinking industry. About 1/3 of the businesses in the SP outperformed the index individually in the past 30 months. This might seem high to the inexperienced but this is actually the lowest since 1990. In 2000 the top 10 of the SP comprised only \~25% of the total. Only 1 business of that top 10 remains in the top 10 today: Microsoft. 2 out of 10 of that top 10 is no longer in business today, and 3 out of that top 10 has posted negative returns for the past 24 years! If you really took the time to understand investing in businesses for the long term it would only take half a brain to outperform the S&P500. I personally outperformed the SP by almost 20x in the past 12-13 years by holding only 7 stocks (excluding a few delistings I held like Providence & Worcester railroad and Hunter Douglas. And timing a few dips and adding to those positions). The businesses I hold were simple to find by basic value investing metrics at the points of entry: **ASML + BESI + 6146 (Disco Corp.)** \[Semiconductor: future growth and moated businesses with unique capabilities\], BESI entry was an absolute steal, anyone could grab that one at 9x earnings with a >90% payout ratio offering \~10% dividend at the time while most thought it was a cyclical business... ASML and Disco are modern day monopolies and the where on major sale several times (compared to industry peers) in the past 10 years. **HIG + PGR + KNSL** \[Insurance: All bought because of leadership. KNSL founder is one of the brightest in the industry simple IPO purchase. PGR I bought when Tricia Griffith took over from Glenn Renwick which was only the 3rd leadership change in 51 years and the first real major female insurance CEO, she published the 'Three Horizons' strategy in 2017 and I doubled my position. HIG is a big heritage insurance brand with a diversified portfolio, in 2020 it dipped with the market, yet while the market recovered HIG remained at a 7-8x earnings valuation with no real burden on the business, snapped it up and doubled my investment when Chubb offered 65-70, today around 120-130. **UAN** little unknown fertilizer business out in Kansas. The only plant utilizing an old Texaco patent from '98 that uses pet coke as its base input. Carl Icahn is a major holder, they took huge debt to acquire Rentech for \~$500m and when fertilizer prices crashed the total business was trading for just $100m. By 2024 I made back my investment by 5.5x in pure cash dividend because of its MLP structure, at current price it is still 9x on value. I think that buying ETFs is one of the biggest thefts of your own future personal wealth one can submit to. Just use half of your brain and learn to analyse and seize opportunities once they come. And remember: "Opportunities multiply once they are seized" Sun Tzu ;D

CrazyTownUSA000

With that kind of money, look into an MLP. They tend to have a return of 8% to 15%.. you'd need a CPA to handle the taxes, but you would make $640,000 at minimum annually.

bocageezer

Utility- and Energy/MLP-related funds should do well, like UTF, UTG, ASGI, TYG, KYN, et al.

dvdmovie1

"You either love them or hate them," I don't hate them but I think the perception of them is somewhat concerning in that I see people who are young enough that they shouldn't be focusing on income focusing on income in a manner that someone who is retired should. Young peoplle who are asking about mREITs because "look at that yield!" Look at the stock that has eroded away because the business doesn't outgrow the yield. A lot of these posts offer nothing about the business and no determination about whether or not the yield is even sustainable. Sometimes they feel as if someone just screened for yield and picked a name from near the top of the list. I'll never forget one post a while back about some MLP that was showing a 20% yield because it was reflecting prior dividends - somebody posting about it and they didn't realize the dividend had already been cut and the business was facing bankruptcy. So I don't hate them, but I caution against this mentality as if dividends are "free money" or something and "more yield = better." "Is the benefit mainly in the type of stocks that typical pay dividends?" To me, the priority is the business. Is this a well-managed, relevant, quality business (whether it's growth, value or somewhere in-between) where I can make a fundamental case for both the short and long-term? If it happens to offer a dividend fine. I think where people run into issues is dividend consideration first, consideration for the business - *if at all* - second.

Starkfault

Mods watch MLP

lakkthereof

ET, oil isn't going anywhere in my lifetime. divy is high. Has a lot of growth to go and is a lot less than its peers. Only downside is k-1 tax form cuz MLP.

Jasoncatt

57M. Around 50% in dividend holdings (BDC, CEF, CLO, MLP, REIT, CC funds). 20% in four fund ETF portfolio. 30% in concentrated growth stocks on which I trade options; CSPs, CCs spreads. As I get closer to retirement in a couple of years, I'm adding more to the dividend portfolio with the aim to be around 60/20/20.

rackoblack

Love my midstream oil & gas MLPs. (And I agree on your "reddit isn't always garbage advice", not just for stocks but lots of stuff.) It may be there's more and more AI generated crap content, but normally that's done with some sort of profit motive, so the real humans aren't that hard to spot. My holdings: ET and EPD, I'm up 38 and 64% in them, not counting the DRIP purchases. They're my 1st (tied with AMZN) and 5th largest individual stock holdings and pay a glorious 7.3 and 6.8% dividend. AMZN is a close 3rd, as I have a 5 banger return on that. The oldest shares (about half of what I own) are up 16x! Once I retired I put some into AMZY to get some day-to-day return out of it. I'm almost always a dividend investor in individual stocks. I may not grow the AMZY position past where it is, which I'm currently about flat in share price wise - just booking the neato 50% divvies. A lot of my MLP shares in ET and EPD were bought with proceeds from closing my position in another midstream MLP, ETRN/EQT. EQT had spun off ETRN to offload a risk (court case? Regulation? I forget) and it was paying a huge dividend, closer to 9%. I was heavy in ETRN because it was paying such a huge divvy. The risk was settled in their favor, so ETRN spiked up! When EQT reabsorbed it the dividend dropped way down below 3%, so I closed out ETRN (some shares had converted to EQT by then). Almost doubled my initial investment earning 9% dividends along the way, booked gains of over 100k on this one holding from 2022-2024. Got kind of lucky, I think. It was just another MLP to get huge divs from. I wasn't aware of the EQT thing until news broke they were reabsorbing. That was a sad sale to make, but happy to book the huge gain and put those funds back to earning again.

TheBarnacle63

An MLP

Various_Couple_764

Yes it is worth it to have dividends in a roth. The dividneds allow you to get more cash into the account without violating the 7K deposit limit. Let say you add a dividend fund that adds 7000 to your account per year. This would double the amount of money going into the fund. And this would double the growth rate. There is however one group of companes you don't want to add to to a Roth The earnings from MLP are taxed in a roth. So you want to void those. However everything else is not taxed. Fund you should consider re PFFD8% yield, PBDC 9%, SPYI 11%, QQQI 13%, UTF 7%, Onenot of PBDC this fund list an expense ratio of 13%. This is not a real expense number for the funds. SEC rules requires this fund list it expense ratio + the expenses the companes it invests in. The ETF never pays the expenses of the companies in the fund. So if you correct for that the expense for the funned 0.75. This fund invests in comapanes that are required by law to pya out 90% of their earnings. So the dividend is always high.

backroundagain

An MLP kept me rising, T bills kept me from dropping.

Helpful_Ad_8662

I’ve been big into ET. MLP with high dividend and good growth potential. I’m expecting it to hit $21~ by end of year

D_Pablo67

I put my dividend stocks and ETFs into categories. Top 4 are higher yielding and steady payers (MLPs & REITs): Energy Transfer (ET) is MLP midstream pipeline with excellent growth prospects and high quarterly dividend. Enterprise Products (EPD) is rock solid MLP and a dividend aristocrat (raised dividend every year for 25 or more years). Realty Income (O) is a REIT known as “the money dividend company.” Yields better than bonds and grows. Also a dividend aristocrat. Federal Realty Trust (FRT) is a REIT and dividend aristocrat paying higher than US Treasuries. Common Stock with lesser following, good yield and solid prospects: Sonoco Products (SON) manufactures packaging like Pringles cans, aluminum pie holders, cores for toilet paper. Yield is 4.7%, good earnings report and I think it is undervalued. Covered Call ETFs by JPMorgan paying high monthly dividends: JEPQ is built around the NASDAQ JEPI is built around solid S&P 500 companies like Visa, MasterCard, Progressive and Trane. It has less yield and less volatility than JEPQ. Papa John’s

Hulledout

I have ET which is paying around 7%. It is a MLP so the tax situation is a little different.

Blumpkeen

Im still up, and $250k down this year after $350k gains in ‘24…. $17k in dividends.. I didn’t want to trigger capital gains and sell since it’s MLP- didn’t expect 17% off the top.. China just cut ethane tariff to 0%, ET is one of only to exporters and sell almost all of it to China.. We’ll see… been down worse and come back

Revfunky

The question is stroked with a broad brush. Is there one? Probably not. Few stocks can stand the test of time. If you asked me in 2016 this question the same dividend stocks I suggested then I would today. ABBV has top-notch management that is loyal to shareholders with annual dividend increases. The other would be for a taxable account. EPD is an MLP so you have a K-1 if that is an issue.

grungegoth

very good answer. just to add, that dividend yields can be quite low. You can get similar rates3 to 4% with large CD's at banks and have them be insured as well. but obviously, there will be no growth. with stocks being down, you can find "safe" stocks with higher yields since their prices are down, then hold them and get some price appreciation. They will not grow as much as growth stocks, obviously. I would focus on utilities, pipelines , oil companies, MAYBE banks and avoid MLP because they issue K-1 for tax season (yuck).

TheYoungSquirrel

I think what the person saying is you have to be careful some “partnerships” in the MLP and energy category may not issue a Schedule K-1. An example of this is NEP

Gimedecash

Buy MLP. Canada has the largest potash reserves in the world. American farmers need to buy our potash to survive. Even after the tariffs were imposed MLP stock is rising.

Grouchy_System6535

MReits in the IRA’s and MLP’s in the taxable.

RS3RRL

REIT's and Pipeline/MLP companies have held up extremely well during this down trend. Owning boring dividend companies pays off.

Grouchy_System6535

Down 1.24%. I’m about 15% cash where I’d normally be <5%. Sold off all my spec names first week of Feb and put half into mReits and MLP’s and half into SGOV for dry powder. The dude literally said there’s going to be pain. We got at least another 10-15% down to go imo.

IhazEpicSkillz

BUY: HRML / NSTLE / KO / Dollar stores / Kroger on your theoretical "crash" Place $270,000 into MLP's paying 8% in a non tax advantaged account so you have immediate usable monthly income (1,800/mo)+ some appreciation and step-up basis later for heirs (estate planning) Buy surviving Banks after restructuring for cap gains / index funds with rest (likely JPM/ GS/ State street/ BofA) GLHF stay in SGOV or BIL rn if you're worried. \~ 4.5% Risk-free rate is a nice reprieve from the constant worry. (There are more active measures you can take, but I don't disclose those here.)

IhazEpicSkillz

HRML / NSTLE / KO / Dollar stores / Kroger on "crash" $270,000 into MLP's paying 8% in a non-advantaged account so you have immediate usable monthly income + some appreciation and step-up basis later for heirs (estate planning) Banks after restructuring for cap gains / index funds with rest. GLHF stay in SGOV or BIL rn if you're worried. Risk-free rate is a nice reprieve from the constant worry.

MomentSpecialist2020

Utility ETF, MLP’s like ENB, and REIT’s like WPC they are necessities. Buy when there’s blood in Wall Street.

WellAintThatShiny

I really think this is the right approach, something conservative but fairly high yield. I would do an REIT, SCHD, or maybe even an MLP like EPD.

Grouchy_System6535

Didn’t sell everything, my core index stuff is the same, but sold off my spec stuff. I trade about 20% of my portfolio in small/mid cap spec stocks, holding anywhere from a couple days but more likely a few months or longer. After two years of run up and valuations stretched I had been selling off the specs from November through January. I put half the proceeds in hold forever mReits, MLP’S, SCHD and half in SGOV for dry powder in case there’s a sell off. I may start to add back some spec later this week if things keep dropping. Started investing late 90’s.

Grouchy_System6535

I sold most of my spec stocks from November through January. Valuations were ridiculous and we were coming off a long stretch of out performance with some radical economic policy changes coming from the new administration. I split proceeds and put half in mReits, MLP’s and SCHD and half in SGOV for dry powder for deploying if there’s a sell off. Around <5800 on the S&P the spec stuff should be sufficiently crushed to look interesting again is my thought.

Trappedunderwater22

I doubt it. I've heard the same sentiment so many times over the decades that I've become numb to it. If it is or isn't, I sit back retired at 53yr and collect my 21k per quarter from my mid stream MLP investments. Unless another black swan event happens, I'll be fine.

Grouchy_System6535

I keep a twitter acct I use just for investing and follow a bunch of active traders/investors, macro. I get guality ideas there that have made big gains. Might be an undervalued stock, maybe just an idea for a strategy, it might be a swing trade, it might only be to confirm my own research. Last fall I was wanting to trim my spec long hold portfolio after two years of big gains and got the idea from Bill Gross to spin the proceeds into mReits and MLP’s that worked out well.

greytoc

Yeah... That's my basic understanding as well. But all complications create opportunities - ¯\\\_(ツ)\_/¯ - there are some new fund products because the tax treaty between US and Ireland is different. So ICAVs could be a possible solution - KPMG primer here - [https://assets.kpmg.com/content/dam/kpmg/pdf/2016/01/fs-the-icav-what-you-need-to-know.pdf](https://assets.kpmg.com/content/dam/kpmg/pdf/2016/01/fs-the-icav-what-you-need-to-know.pdf) A ICAV is kinda like how a BDC or MLP is structured in the US from what I understand.

theory317

Idk if I would buy LEAPS on a MLP. Usually they're structured in a way that any major jumps in valuation are returned to the shareholders as distributions.

Grouchy_System6535

I trimmed back my speculative stock holdings and from proceeds put half into hold forever stuff like SCHD, REITs and MLP’s and half into SGOV for dry powder if something I like sells off. Whereas two years ago I was going all in. I’m not thinking the bull market can’t continue but it’s frothy in my opinion, values are stretched and earnings are priced to perfection.

mspe1960

I am retired and I am about 50% equities (40% S&P500 10% dividend paying stocks) and 50% income producers which is mostly bond funds (Treasury and corporate) and some treasuries from treasury direct but also some MLP's BDC's and covered call stock funds.

SoapieDude

Yeah, the MLP is a part of the appeal on this one.

greytoc

I won't use a home equity LOC to fund an equity investment. And certainly not to arbitrage interest rates using a REIT. The interest on the LOC is also not necessarily the most efficient way to leverage. I also assume that you realize that MPLX is an MLP. Make sure you understand the tax implications.

Socialist-444

Put a good chunk of your cash in KYN, PFIZER. KYN is an etf filled with midstream companies, many MLP. These companies are the pipeline infrastructure for moving gas, oil, refined fuels etc. They get paid full rate regardless of the price of the underlying commodity. Traffic is backlogged and will remain that way due to the time, money, effort, and red tape to expand this infrastructure. Because it's an ETF, you do not have to mess with K1 form and taxes. 7.6% yield. I bought when it was 10% but the shares have gone from $10- $13 over the last 18 months. Low risk, recession proof, 4.5 PE Multiple. It will never be Nvidia but it's stable, safe and outperforms your 4.7% MM that will be reduced further by the end of next year with another 100-150 basis point reduction in the Fed funds rate. PFIZER is trading near 5 year lows. 6.7% Dividend easily covered (just announced 3% increase). Owners hate it because it's gone down for over 2 years and cut more than 50%. Exactly when you want to buy. Their oncology pipeline looks fantastic through 2030 and they have already turned the corner last Q on sales and profit(bounced off trough). Historically they trade at 13 times earnings, you can get them for 8 times right now. The good part is that even if the stock stays stuck a while longer, you're collecting 6.7% instead of 4.7%;while you wait. Eventually it will be $40+ again. Not an advisor, but a retiree like you. I still have lots of growth stocks, funds, etfs, ect. but I value safety and a better than average return on capital to afford a decent lifestyle.

Dagobot78

To much tech. I would personally sell Google, buy more amazon. And buy something in the energy sector… maybe a high yield MLP or pipeline company like Kinder Morgan or Williams group…. Maybe even a restaurant like Cava or Chipotle. Good luck

wha2les

I see. So outside of MLP, any distribution no matter whether it is qualified or ordinary (in a taxable account) will be taxed at ordinary income rate. Did I understand you correctly

Socialist-444

No. Your IRA will look at any withdrawl exactly the same, as income. They don't care if you made money or lost it. If you paid foreign tax on dividends, no credit. The only thing that causes extra payment or scrutiny is a MLP. Un Related business income tax. It hits over $1000. Your broker will handle the tax return ($500 charge Vanguard) and deduct the tax from your account.

trader_dennis

If you are on the older spectrum add a MLP for tax free distributions until you hit zero cost. Then pass it onto your heirs and reset any cost. They pay 7 percent tax free distributions or greater. ET EPD MPLX are some off the top of my head.

Whitestealth74

MLPs (Master Limited Partnerships) or PTP (Publicly Traded Partnerships) are a nightmare to deal with at tax time. You need large investments to make these viable for the trade off to having deferred tax benefits of owning these. I accidentally buy one of these here and there and don't realize it til the deed is done. There is always something "new" every year and then if they change the rules after you filed, you have to amend and that's another crazy mess. Most people don't know how to deal with them and depending on what states the MLP/PTP does business in, you are supposed to file State tax returns in those states as well. The Better option: Buy ETF's that own these and you just own the common shares of the ETF and let the fund managers deal with all the tax filings. A good example is: AMLP (ALPS ALERIAN MLP ETF) . Solid returns, and just an easy way to buy those MLPs and still save on the tax return time/money.

Toothlesskinch

Edit: I'm only playing options here. No stocks. This is an MLP. Caveat emptor

Actual_Tax_5119

How old are you? My brokerage account funded by 401k loan has done a fine job of returning $7,000 per annum to fund my Roth. Some dogshit MLP like ET on a 50k loan would even return enough in dividends and cap gains to fund a Roth that you can use to invest in speculative tech. lol 50k is max 401k loan amount. Getting, 17% return is not that fucking hard.

notreallydeep

Black Stone Minerals if you really want the income, though it's an MLP. For distributions in general (meaning buybacks = dividends) pretty much the entire oil & gas sector.

watertiger_09

Do you receive K-1 forms for EPD at the end of the year? I love my ET stock, but can't keep it in my IRA account due to it being classified as an MLP. I'm trying to find a high yielding substitute stock.

N_O_O_D_L_E

>I’m saying that strong (or weak) performance doesn’t imply irrationality. Strong returns from one stock where the price implied an unrealistic range of outcomes DOES imply irrationality exists. I was being flippant in my very first comment to you, but hopefully my 3rd and latter comments made it clear that I am not saying "hey one stock did well, so therefore EMH can't hold." Returns alone don't prove that, but I am providing context supporting my belief that there's no way META pricing was reflecting all available information from *any* universe of possible information. I am saying that: - one stock was priced as if it was going out of business when it was highly profitable, had room to take expense out of the opex line, and even if you baked in secular decline (which I was a believer in at the time), price still didn't make sense. - Even the most bearish of my peers didn't understand the price action (TMT analysts at MLP, p72, etc.), so there wasn't any widespread fundamental narrative; there was no new fundamental information being incorporated. - This is a large cap stock, where sure, you take on idiosyncratic risk, but realistically most people don't expect these to outperform SPX by more than 500 bps, certainly don't expect them to post 300% returns over any 12 month time frame. I will tell you that nobody expects to earn 500% of outperformance owning a megacap tech stock over a \~2 year span, which is what META did from Nov 4, 2022 to now. > I’ve already said I don’t believe the EMH is true, but strong returns from one stock in no way disproves it on its own. You earlier said you believe the semi-strong form to hold true. As mentioned above, my comments to other users in this thread before we even started discussing + my later comments to you should have made it abundantly clear that it's not just me saying "a stock outperformed so EMH doesn't hold." In my other comments to users, I said that these returns are commensurate with what you would hope to get holding absolute garbage and junk (with GME, Chinese ADR frauds, that type of thing in mind). Not what you'd expect to earn holding a mix of quality, size, and internet exposure, and idiosyncratic business risk (informed by my experience as a hopefully knowledgeable fundamental analyst) didn't explain what was incorporated into price either. You only need one exception to disprove a hypothesis. I also don't see the linkage between "small sample size" and me having a "misunderstanding of EMH." To that end, if you'd said that sample size were the qualm for you, I would've pointed you to Bessembinder's study showing that **57%** of stocks failed to outperform TREASURIES over the past 100 years. How can that be remotely close to efficient when you are supposed to be compensated for bearing idiosyncratic risk? But that's not what you asked for. You just said that I don't understand what I'm talking about. > NVDA and META are not risky businesses in the sense that everybody knows they’re not going to fail anytime soon, however, they are risky stocks from a volatility perspective. Is that due to behavioral biases of investors and does that make them irrational? Or is it due to those being highly watched stocks where the info is absorbed so quickly by so many people the moves are hard and fast? Yes, there is a lot of information and headlines that come out around these stocks and this generates movement. Regarding reactions to news, this does contribute to increased efficiency assuming it's being done by knowledgeable participants. I think you are not getting that my qualm with all forms of EMH is with the statement that "**all**" available information (again from any given combination of public and private info) is incorporated into stock prices, which is a very strong statement. I think you believe the EMH and its varying forms to just be "weak = some information is incorporated, semi-strong = some more info is incorporated, strong = all information is incorporated," which is a misinterpretation and not correct as I've said multiple times. > My only disagreement is that EMH does not preclude stocks from outperforming the market. **If EMH were true, it would prevent investors from consistently outperforming on a risk adjusted basis** which includes business risk, industry risk, stock volatility, as well as total portfolio risk and volatility (holding 100% META is absolutely riskier than holding 100% SPY so should earn higher returns). I agree with the bolded part. My point is that a) alpha generation does happen and b) there is no way all public information, let alone all public AND private information is incorporated into security prices, hence my total disagreement with at least 2 of the 3 forms of EMH. Again, I think the entirety of disagreement is due to you not understanding what the EMH is explicitly claiming, on top of which not having real security selection experience leading to comments like "efficiency is not tied to magnitude of the move resulting from new information."

Subject_Detective_72

MLP’s are commonly discussed in the realm of estate planning because the cost basis resets upon death. How does this work for charitable giving? If I’ve received enough distributions to have a $0 cost basis, am I able to donate that stock to a 501c3, upon which they can sell with a cost basis of price upon donation?

rackoblack

ETRN - opened at $6.73, almost doubled my money while earning 8% or more in dividends. I'm mostly a buy & hold investor (and run the portfolio for my wife and I, age 58, just RE). About 1/3 of nw is in equities I manage, in a mix of IRAs and taxable. I have a lot of dividend holdings - the individual equities average to a 5% return despite a good chunk being in Amazon. I've had oil & gas MLPs for years for income and added ETRN to the mix mid-2022. It caught my eye as I wanted more MLP holdings and Morningstar rated them 4+ stars. In 2023, they won a court or regulatory case that allowed a big deal to close. Turns out I missed this in researching the buy, but they had been spun off from EQT to protect from that case's added risk. ETRN nearly doubled by the time I started selling. I knew the EQT dividend rate was not going to be to my liking so wanted to close the position. Ended up with over 25,000 shares at the peak, most of that in IRAs so no CG tax when closed, with a basis of $7.00 or so. Sold the bulk of it at $12, some of it higher than $14. Doubling almost is cool and all, but I'd rather still be holding it at 8% dividend (closer to 16% effective).

Ohculap

Yea dividend is good but its sometimes stagnant for some time. There is some yield maxing etf that you can get a greater return on if you want dividends. If you want dividend growth i’d suggest RTX which has government money. Visa as well, they get money from each transactions made using anything VISA related and rn in my opinion it’s undervalued. Something like WMT is another good option but you already have COST. WMT is here to stay forever. Also i’m surprised you don’t have MSFT on your list they are everywhere and still growing in profit. ALSO ONE THAT I WOULD ADD AT YOUR AGE IS ET-Energy transfer they work with natural gas pipeline. The only con with that is that you have to make an extra thing on your taxes because it’s an MLP.

Ol-Fart_1

One IMPORTANT item to consider. Yes, you can hold master limited partnerships (MLPs) [EPD & ET are MLPs] in a traditional or Roth IRA. However, MLP income over $1,000 annually is taxable, which can create tax liabilities for the account. This is because the IRA becomes a limited partner in the MLP, and the tax code treats the partners as if they are directly earning the MLP's income. Look up  unrelated business taxable income (UBTI).

eyehunt2

Yes, build an income portfolio, aggressively. Yeildmax, BDC’s, REIT’s, MLP’s, Preferred stocks, etc. Also learn about covered calls and cash secured puts. You will be working through retirement, but you will be working for yourself 👍, it’s going to be okay

Francis293

Alright, I do this for a living and am going to give you some suggestions as well as things to think about. I will also point out some things to avoid, tho it may offend some other commenters. First, it's very important to understand that there no free lunch. The IRS exists to take your money and they are good at it. Furthermore, congress loves it's money as well. The point here is that it's an absolute bitch to invest and minimize taxes. Doable, but challenging and not always advisable. Sometimes, you do in fact want the taxable option. Second, why would anyone want the taxable option????? Because of the potential adjusted gains on the taxable option vs the tax free one. Just because something is tax free does not mean it's making you more money long term. It can actually make you less. As an example: municipal bonds, bonds issued by states, cities, counties etc. are generally tax free across the board. As are bonds issued by territories. And if no taxes at all costs is what you want then these are the way to go. But, because being tax free puts them in high demand they usually offer very low interest rates. At present most munis offer 3ish percent a year while taxable bonds are 5ish, depending on issuer of course. So, you have to do some math on the interest payments to figure out which bond has the better tax adjusted interest. It coul easily end up that paying taxes on a corporate bond gets you better money then the tax free muni. This same rule applies to equity/fund investing. Sure, you might save money on this year's taxes by doing some of what others have suggested, but the cost in the long the long run could be reduced returns. A good example is the MLP route. It can provide great tax advantages in the present, no doubt. But, if you're looking 20 years into the future you have to consider wether or not the potentially smaller returns are worth today's tax advantages. They might be; just depends on your situation. My best suggestion would probably be to stick to index ETFs as they rarely distribute much in the way of cap gains, unlike mutual funds. Investing in them would reasonably limit taxability from year to year while giving you diversified market exposure. As long as you buy and hold for awhile you'll put off cap gains taxes until a time that's more advantageous to you ie fresh into retirement with "no income". Lastly, a word on direct indexing. It's very much in vogue these days but is entirely unproven as a strategy for the retail investor. It's usually expensive and has minimums, relative to other options. It's also, generally, a form of semi active management which may hurt returns. It's best selling point is tax loss harvesting, but done poorly this can lead to kicking the can down the road. I personally am not a fan. But, it's too soon to say if it's good, bad, or other. Approach with caution.

Far_Sentence_5036

Over in Europe the biggest opportunity to 🚀🌭🍑🐻 is Hellofresh $HFG stock is up 25% since results most shorted stock in Europe (Citadel, MLP, Steve cohen) all need to close. stock is 1bn market cap, profitable (400m ebitda) and also cashflow positive. crazy cheap. I wish HFG traded in the US so it could do a carvana. stock is down 95% from all time highs €20bn EV. But deserves to go up a few bags. https://preview.redd.it/agzeapjcrsid1.jpeg?width=623&format=pjpg&auto=webp&s=76267d03450749ffdc903e9aa36a0bb65069f1f2

RevolutionaryPhoto24

I think this a great idea! I actually held TPL, but sold at the end of last year to buy NVDA. Every time I refer back to it, it seems richly valued, but then goes up even more. I’m going to do DD on this, as I’ve been thinking of getting back into TPL. (Though I also hold MLP and ARIS, so will check allocation.) So far I am seeing different numbers…but great idea!!! I think this could be a young TLP.

drew-gen-x

$EPD is a very good choice. I own $KMI which has also been on a tear. The pipelines are the stocks / MLP's to be in to play this potential natural gas recovery. They are much safer than buying natty gas future ETF's like $BOIL or $UNG.

CosmicSpiral

EPD's recovery has been pretty damn impressive considering it's a low beta MLP. Buying at $27.60 was probably the best move I've made in this stretch along with APP.

Antony9991

I saw him mentioned in a MLP cosplay sub

betadonkey

Fair warning: EPP and many other oil and gas companies are structured as master limited partnerships (MLP’s) and not corporations. They pay great distributions and have tax advantages but actually doing the taxes for them is a complete nightmare. Your eyes are going to pop out of your head once you get that first K1 and realize you owe taxes in 30 different states. It can still be worth it just make sure to get them professionally done.

Alternative-Neat1957

I am in my early 50s and FIRE. We are in the process of moving from Dividend Growth to Dividend Income. A lot of it is going to depend on the yield that you are looking to replace. A couple individual companies that I like right now: ES is a Utility company that has a starting dividend yield of about 5% right now. It is also raising that dividend by 6% a year (twice as fast as inflation) with earnings growth to match. EPD is a MLP midstream pipeline company. It is paying a dividend of about 7% right now with dividend growth of about 4%-5% a year. Because it is a MLP, it has some ROC in their distribution that should give you a favorable tax treatment (talk to your tax pro). It does use a K1. Of course there are some ETFs and CEFs that are designed to provide current income with a secondary goal of capital preservation / growth such as EOI, EOS, JEPI and JEPQ.

trader_dennis

Not sure op is old enough for ET. MLP’s are forever hold and pass tax free to your heirs.

jerryjones-is-smart

First off, that’s enough money to take to a fixed income wealth management desk. They’ll happily discuss options. Personally, I think indexing half of it slowly over the next year (watch for corrections to deploy more capital). Then you need to look at dividend index funds, bonds and bond funds especially high rated munis and corporates with strong balance sheets, BDC stocks, MLP’s, and REITS (diversify across these highly liquid options). Cash is still paying 5% and is a good option to wait in for now. Again, talk to an advisor and don’t ask Reddit.

MomentSpecialist2020

Big expensive house = high property taxes and high maintenance! Houses are for living not investing! Buy the house you need, invest rest in assets that yield income and in diversified areas REIT, MLP’s, BDC’s, BONDS, SPY, QQQM and a little GDX for inflation protection.

Thebloody915

A mixture of BDC,s, CEF,s and MLP's.

wild_b_cat

I don't have any specific tips, but I do have one general tip. Before you go buying any of these tickers, make sure you know what an MLP is and how getting a K-1 file will change your taxes. Many gas-related investments are MLP shares rather than normal stocks, even if you're buying & selling them exactly the same as you do other stocks, and you can get a bad surprise at tax time if you're unaware.

Key-Mark4536

[Investopedia](https://www.investopedia.com/ask/answers/102714/can-i-own-master-limited-partnerships-mlp-my-roth-ira.asp) covers it pretty well. Long story short, a small amount of MLP income remains tax-deferred or tax-free in an IRA, but a large enough amount becomes taxable, which kind of defeats the purpose of holding it in an tax-advantaged account. 

BigBry36

A lot of risk for 10% on foreign investment… you can get 7% on USA MLP’s

AlfB63

If you have income of over $1000 in an MLP held in an IRA you will be taxed on it even in an IRA.  I assume a 401k is the same but it's rare that you can buy an MLP in a 401k so I have never looked at that specifically. 

etypic

AMZA is an MLP ETF setup as a corporation for tax purposes and pays monthly with qualified dividends. Read into it though, the fund uses options to generate additional income so there is additional risk and some possible capping of return.

greytoc

You invested in a commodity pool which is structured as a PTP (publicly traded partnership). That means that a shareholder, you are actually a limited partner in the company. In the US, partnerships are pass-thru tax entities. So that's why you got that tax form. As far as what you do with that - I have no idea. It's one of the reasons why it's usually suggested to avoid investing in public companies structured as PTPs and MLPs (master limited partnership) for non-US taxpayers. Most brokers usually provide a warning whenever an investor tries to open a position in an PTP or MLP because even for US taxpayers - it can be a hassle.

Delicious_Domino

Get into MLP before the summer…Pineapples will be in high demand!!

1kfreedom

Trust me, I am an idiot. But if you want dividend income from MLPs you might consider this AMLP. I googled the dividend stuff below. Not financial advice! Distributions from the Alerian MLP ETF (AMLP) are considered qualified dividends or returns of capital, and are taxed at long-term capital gains rates or deferred, respectively. Qualified dividends are taxed at more favorable rates than ordinary income. Since its inception, 80% of AMLP's distributions have been tax deferred.

SplinkMyDink

Can you put what each category stands for? is BDC Big Dick Companies? MLP = Milf Light Pussy? REITS = Return Earth, Initiate Tuesday Shooters?

Limp-Grab1119

It was from that MLP evolution picture. The comments were locked, so I couldn't say anything.

Whisker_Light

Who tf is going to sleep. I’m eating chips and watching MLP because I’m so stressed.

Joebobcousy

ET is an MLP, so that one’s out

Relevant_Ad1494

What’s your problem with MLP? EPD is a great energy play!

Infamous-Potato-5310

Thats so cool, I want to get into some MLP stocks but hesitant worrying about k1 forms showing up. Does your brokerage (shwab for me) handle that kind of thing or is it sent separately?

My-Dumb-Questions

The vol-related blowups were so tasty. The likes of Malachite and Plinth losing pretty much all of their capital, a single PM single-handedly losing 14% for Graham, MLP almost blowing up on bond basis (which is essentially an options trade) and being bailed out by the Fed/UST, Ronin exploding on the VIX expiration trade etc. We want more of that, please :)

animositisomina35

This sub is pumping an MLP now? Have fun with the K-1s 😂

AbnerFeldman

Yes, I believe it’s the second largest MLP in the nation

OSRSkarma

Didn’t answer my question, is it an MLP

1kfreedom

Congrats on the knuckleheads that jumped in on PAA. Just be careful buying shares, it has weird tax issues related to it because it is an MLP. So unless you are buying tons of shares (or buying it in your IRA) it may not be worth the effort. Even in the IRA it could have issues if you buy a lot.

locked_in_the_middle

Are these not all high paying dividend stocks? Sort of like MLP structure, in the sense that if they have blow up incredible profits they will just pay those out as dividends and keep the share price stable instead of inflating earnings and stock prices. So even if financially the company does well the stock will be flat and the options will expire worthless?

NotDrewBrees

You’re thinking more of REIT’s than MLP’s here. MLP’s don’t have the 90% distribution rule that REIT’s have to abide by. MLP’s don’t have those minimum distribution requirements. This is a key advantage of MLP yields (alongside tax treatment in the MLP K1’s but I’m not gonna get into that here). They’re high right now because many public investors have blacklisted energy investments unless they have high ESG standards. Most don’t, so the sector is under-invested right now. Energy firms are all throwing off tremendous free cash flow now that they’re so lightly levered, and MLP’s don’t have a huge number of infrastructure buildout projects that would require huge capital. Ergo, they can afford to pay out juicy distributions. The dividends that they announce are well within their free cash flow (< 80% in many cases), so it’s really more of an error on investors’ parts not to scoop these MLP’s up. LNG export capacity, on the other hand, is currently underway, albeit at a really glacial pace. It has infamously always been a ‘3-4 years away from today’ prospect because gas production keeps growing faster than these export terminals can get built out. But firms like PAA aren’t the ones undertaking LNG export terminal projects. That’s mostly Cheniere Energy.

Chickenman-245

ET is an MLP. Been heavily invested for years. Why didn't you just YOLO ERX if you think oil is going back to pre-covid highs?