4 Great Picks to Earn 6% - 8% From Master Limited Partnerships
Pipeline companies pump profits from moving America's rising oil production.

With domestic oil production rising to about 9 million barrels per day—up from 8.4 million in mid 2016—MLPs are thriving once again. The firms operate pipelines, storage terminals and other types of infrastructure for the oil-and-gas industry. MLPs distribute most of their cash flow, after expenses, and as they build more pipes to meet demand, they should be able to increase distributions. “We’re back in an environment in which the industry will grow,” says Chris Eades, who manages funds that buy MLPs for ClearBridge Investments.
Earnings for All
- Municipal Bonds: 1%-5%
- Investment-Grade Bonds: 2%-4%
- Real-Estate Investment Trusts: 4%-6%
- High-Yield Bonds and Bank Loans: 3%-5%
- Foreign Bonds: 3%-6%
- Closed-End Funds: 7%-9%
- Mortgage REITs: 8%-11%
Risks to your money. The stocks could slide if oil prices tumble and producers scale back on drilling (reducing demand for pipes, storage and processing plants). Steeper financing costs for new projects could hurt the business. If you buy individual MLPs, you’ll have to deal with complex K-1 tax forms.
How to invest. Among individual stocks, Eades recommends three firms: Nustar Energy (NS, $52, 8.4%), Enable Midstream Partners (ENBL, $17, 7.6%) and Enterprise Products Partners (EPD, $28, 6.0%). The first two MLPs should benefit from rising oil production in the shale regions of Texas and Oklahoma, Eades says. Enterprise is one of the largest and most diversified MLPs, with a solid balance sheet and projects in the works that should lead to steadily higher distributions. “If you want to own one MLP stock, this is it,” says Eades. If you’d rather not pick your own securities, take a look at Alerian MLP ETF (AMLP, $13, 6.3%). It recently held 25 stocks, emphasizing the biggest MLPs. Investors in the ETF receive standard 1099 tax forms rather than K-1s. One drawback, however: The ETF doesn’t yield as much as many individual MLPs, in part because of relatively high annual fees of 0.85%.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

-
Stock Market Today: Stocks Soar on China Trade Talk Hopes
Treasury Secretary Bessent said current U.S.-China trade relations are unsustainable and signaled hopes for negotiations.
By Karee Venema
-
2026 Disney Dining Plan Returns: Free Dining for Kids & Resort Benefits
Plan your 2026 Walt Disney World vacation now. Learn about the returning Disney Dining Plan, how kids aged three to nine eat free, and the exclusive benefits of staying at a Disney Resort hotel.
By Carla Ayers
-
Dividends Are in a Rut
Dividends may be going through a rough patch, but income investors should exercise patience.
By Jeffrey R. Kosnett
-
Municipal Bonds Stand Firm
If you have the cash to invest, municipal bonds are a worthy alternative to CDs or Treasuries – even as they stare down credit-market Armageddon.
By Jeffrey R. Kosnett
-
Best Banks for High-Net-Worth Clients
wealth management These banks welcome customers who keep high balances in deposit and investment accounts, showering them with fee breaks and access to financial-planning services.
By Lisa Gerstner
-
High Yields From High-Rate Lenders
Investors seeking out high yields can find them in high-rate lenders, non-bank lenders and a few financial REITs.
By Jeffrey R. Kosnett
-
Time to Consider Foreign Bonds
In 2023, foreign bonds deserve a place on the fringes of a total-return-oriented fixed-income portfolio.
By Jeffrey R. Kosnett
-
The 5 Safest Vanguard Funds to Own in a Volatile Market
recession The safest Vanguard funds can help prepare investors for continued market tumult, but without high fees.
By Kyle Woodley
-
Stock Market Holidays in 2025: NYSE, NASDAQ and Wall Street Holidays
Markets When are the stock market holidays? Here, we look at which days the NYSE, Nasdaq and bond markets are off in 2025.
By Kyle Woodley
-
Stock Market Trading Hours: What Time Is the Stock Market Open Today?
Markets When does the market open? While the stock market does have regular hours, trading doesn't necessarily stop when the major exchanges close.
By Michael DeSenne