The article highlights the growing interest in master limited partnerships (MLPs) as a way for investors to capitalize on rising energy demand in the U.S. driven by the ongoing conflict in Iran, which has pushed oil prices higher and increased the need for U.S. liquefied natural gas.
The Global X MLP & Energy Infrastructure ETF (MLPX) has surged 27% this year and currently offers a nearly 4% dividend yield. Analysts from Bank of America suggest that midstream oil companies are well-positioned for various market scenarios, with potential for increased production if oil prices remain high.
The article also identifies specific MLPs favored by Wall Street, including The Williams Companies, which has a 2.7% dividend yield and strong analyst support, and Energy Transfer, boasting a 6.7% yield. Kodiak Gas Services is also noted for its growth potential and strong analyst ratings.
Overall, while MLPs offer attractive yields, investors should be aware of the complexities associated with their tax structures, particularly the issuance of Schedule K-1 forms