Anyone buying Master Limited Partnerships, and what are they?

[schamp]

Can anyone school me on Master Limited Partnerships? I am looking at Kendal Morgan (kmp), New Star (NS), Linn Energy (LINE), Energy Transfer (ETP). I talked with a broker who knew less than I do. Thanks, Spencer

[McLovin]

Originally Posted by schamp

Can anyone school me on Master Limited Partnerships? I am looking at Kendal Morgan (kmp), New Star (NS), Linn Energy (LINE), Energy Transfer (ETP). I talked with a broker who knew less than I do. Thanks, Spencer

I've owned several of them for around 8 years now.

They've been awesome for me. I don't look at the statements every month, but they have been returning 15%+ on dividends for me each year for years. And they've also doubled (probably more, I haven't looked recently) in stock price, too.

I have Kinder Morgan, Enterprise Energy Partners, Enbridge Energy, and a couple of others.

They are all basically in the business of owning and developing pipelines for oil and natural gas. They charge oil and natural gas companies fees for transporting those things through the pipelines.

And ML is, in a nutshell, a publicly traded limited partnership. So, unlike most limited partnerships where you usually can't easily sell your interest, you can sell your interest in the MLP like a normal stock - it is very liquid.

[VincentVega]

Adds a lot of complexity to your taxes. kmp has has been decent to me, but the tax reporting was a PITA.

[McLovin]

Originally Posted by VincentVega

Adds a lot of complexity to your taxes. kmp has has been decent to me, but the tax reporting was a PITA.

I use Turbo Tax and do my own, but yeah, it does add some complexity.

Having to input all of those numbers on all of those lines does kinda suck, and there are always some that seem a little ambiguous, and the tax forms they send you aren't very clear at first.

Once you get used to it, it's not so bad, though.

[VincentVega]

I hope so. I'm not a tax pro but the forms were anything but clear. Also, the forms came pretty late. So, if you use turbotax dont file until you get all your docs.