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Investing in MLPs: Energy Transfer Equity or MLP ETF?

Energy Transfer Equity Is A Total Return Investor's Dream

Summary

  • In my opinion, you would want to own this regardless of the Williams ruling.
  • The Energy Transfer family members offer plenty of growth potential.
  • Fat yield on the distribution makes this a good total return vehicle.

By Tony Termini

Energy Transfer Equity not only keeps the oil and gas flowing through its pipelines but also keeps the distributions flowing to its investors.

*Note: This article was a written a day before the recent court ruling in Energy Transfer Equity's (ETE) favor. ETE jumped over 7% after the ruling. Our article on Energy Transfer Partners (ETP) before the ruling can be found here: Is Energy Transfer Partners A Buy?

As I write this article, there is no verdict yet in the trial between Energy Transfer Equity and Williams Companies (NYSE:WMB) regarding their merger (dis)agreement. WMB wants the deal to go through at ETE's original offer price, and ETE wants out... CONTINUE READING



Rely On Predictable Income In Times Of Uncertainty

Summary

  • The growth and income offered by midstream energy MLPs could provide a hedge in rough markets.
  • I believe that the sector offers plenty of growth potential.
  • Owning the Alerian MLP ETF offers broad diversification within the sector.
  • While made up of MLPs, the fund can be added to both taxable and qualified investment portfolios.

By Tony Termini

Last Thursday's Brexit vote was as much a shock to global financial markets as it was to political elites in London and Brussels. And, quite frankly, I am not sure whether it will end up being a blip on the radar or the catalyst for renewed global economic slowing and the next bear market.

In my opinion, owning some energy midstream MLPs right now could give you a little hedge against a prolonged flat or declining market. And, the Alerian MLP ETF (NYSEARCA:AMLP) is a great vehicle to use to get broadly diversified exposure to the sector. Before I go into detail about the fund, let's look at midstream energy MLPs in general.

Before you fill the tank with gas or turn the knob of your stove, the refined petroleum and natural gas you'll use makes a long trip to get to you. That trip has three legs... CONTINUE READING

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