Fearless Frankie
Menu
  • Home
  • Real Estate
    • BRRRR
    • Roofstock
  • Stocks
    • MLPs
  • Income Reports
  • About
Menu

MLP Income Portfolio: Real-Life Holdings

Posted on February 26, 2019February 26, 2019 by FearlessFrankie

MLPs, or Master Limited Partnerships, make an attractive investment for investors seeking high income and diversification from other high-dividend yield stocks, such as REITs and BDCs. I’m always surprised to learn when investors tell me they don’t have MLPs in their investment portfolio.

I have approximately 7%-8% of my total net worth invested in companies that operate under the MLP structure. For me, this is the right amount of exposure I want in this sector, which is comprised of mostly oil & gas companies. But you have to be selective in this sector because there are certainly some poorly run companies that don’t produce the returns you are looking for.

Aim for MLPs that have a track record of growing distributable cash flow, which is money available to be paid as distributions to its limited partners (you, the investor) once general partners have been paid.

Instead of chasing the highest yield, I think it’s a smart idea to aim for MLPs that can easily coverage its distributions. I try to aim for a distribution coverage ratio of 1.2X or higher. This means the distribution (aka dividend) is at less risk.

My MLP holdings are held in E*Trade. In this portfolio, I own units of 6 MLPs, along with a non-MLP oil company, a real estate investment trust, and a utility stock. It’s my “high-income portfolio” (“HIP”).

MLP Income Portfolio: My Holdings

Here are my HIP holdings, from largest position to smallest, the stock symbol, and current value.

Enterprise Product Partners (EPD): $5,161

Alliance Resource Partners (ARLP): $4,994

Phillips 66 Partners (PSXP): $4,395

Phillips 66 (PSX): $4,144

MPLX (MPLX): $4,051

National Storage (NSA): $3,670

Energy Transfer Partners (ET): $3,149

WEC Energy Group (WEC): $2,972

Antero Midstream (AM): $2,802

Portfolio Holdings

Estimated Income

The best part about this portfolio, of course, is the INCOME! While I expect some stock price appreciation, I am really more focused on income.

Over the next 12 months, the portfolio of $35,357 is estimated to generate $2,329 in income, which is mostly from MLPs via distributions.

MLP Income

MLP Income Tax Treatment

MLPs have favorable tax treatment for investors. Distributions are not taxed when they are received by investors. They reduce your cost basis in the investment, and you only have to worry about taxes when you sell your units.

Personally, I plan to just hold my MLPs, re-invest the distributions, and eventually transfer the distributions to my bank account instead of re-investing. I don’t think I will ever sell them entirely.

For more on MLPs and taxes, I would strongly recommend reading up on MLP basics and consulting with a tax professional.

Disclosure: I own units of the above mentioned stocks. This post is for informational purposes only and should not be read as professional financial advice. I am not a financial advisor or accountant. Please do your own due diligence before investing and consult with an advisor or accountant.

Share this:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)

Related

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Frankie is a 31-year-old real-estate investor and blogger. Join me as I grow wealth through investing. Let’s take the fear out of investing together! Read more on the About page.

Recent Posts

  • Second BRRRR Deal in Progress: The Numbers
  • First BRRRR Deal Officially Complete: Final Numbers!
  • Passive Income & Net Worth Report: February 2019
  • MLP Income Portfolio: Real-Life Holdings
  • Fayetteville BRRRR Update: Deal Closed!

Follow Fearless Frankie

  • Facebook
  • Pinterest
  • Twitter

Top Posts & Pages

  • Second BRRRR Deal in Progress: The Numbers
  • First BRRRR Deal Officially Complete: Final Numbers!
  • Passive Income & Net Worth Report: February 2019
  • MLP Income Portfolio: Real-Life Holdings
  • Fayetteville BRRRR Update: Deal Closed!
  • Are MLPs the Best Investment for 2019?
  • About
  • Income & Net Worth Report: January 2019
  • My First BRRRR Deal in Fayetteville: The Numbers
  • Should I Pay Off My Mortgage or Invest? Real Example

Archives

  • April 2019
  • March 2019
  • February 2019
  • January 2019

Categories

  • Passive Income & Net Worth
  • Real Estate Investing
  • Stocks
  • Uncategorized

Archives

  • April 2019
  • March 2019
  • February 2019
  • January 2019

Categories

  • Passive Income & Net Worth
  • Real Estate Investing
  • Stocks
  • Uncategorized

Recent Posts

  • Second BRRRR Deal in Progress: The Numbers
  • First BRRRR Deal Officially Complete: Final Numbers!
  • Passive Income & Net Worth Report: February 2019
  • MLP Income Portfolio: Real-Life Holdings
  • Fayetteville BRRRR Update: Deal Closed!
©2023 Fearless Frankie | WordPress Theme by SuperbThemes