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MLP Income Strategy

This managed equity strategy seeks high dividend income plus growth of income and principal by investing in a diversified basket of tax-advantaged Master Limited Partnerships, or MLPs - dividend focused companies that primarily operate in the energy business, transporting, processing and storing of crude oil, natural gas and petrochemicals.

 

We favor MLP stocks that generally meet the following criteria:

 

Solid Dividends – An important criteria includes that the company pay regular, consistent dividends and have mature, stable and predictable cash flow.

 

High Distribution Payout – MLPs pay out the majority of their available cash flows, which brings about financial discipline.

 

Distribution Growth – We seek MLPs that grow their cash distribution year over year.

Strong Energy Fundamentals – Invest in companies with assets that take advantage of the developing shale oil and natural gas boom currently taking place in the US.

Lower volatility - Revenues are generated from long-term fee based contracts that are not exposed to the prices of the underlying commodities, but rather volumes of oil and gas that flow through the system; historically strong performance in a variety of market environments, typically have lower correlation to the market.

Exempt from Federal Taxes - MLP payouts are not taxed at the entity level, but only at the individual level, avoiding double taxation.

Owning Real Assets - MLPs usually own and operate pipelines, terminals and storage facilities that are used to store and transport oil, natural gas and petrochemicals.

Easy Liquidity - These stocks are highly liquid allowing easy entry and exit for client portfolios should the need for liquidity arise.