Investors who are in search of tax benefits of different limited partnerships along with getting the possession of the publicly traded securities can gain all these through making investments in MLPs. MLP stands for Master Limited Partnerships. However, now the question is that what are the best MLP related stocks to purchase in 2021. The majority of the MLPs are made up of different pipeline companies that are doing business of transporting various petroleum and natural gas products. Given below are some statistics shared by Insider Monkey related to the pipeline industry:
“Based on a study conducted by the business and research company, the global pipeline market transport market is expected to grow from $170.6 billion in 2020 to $180.3 billion in 2021 at a compound annual growth rate of 6%. The market is expected to reach $262.1 billion in 2025 at a CAGR of 10%.”
For selecting the top 12 Pipeline and MLP stocks, the following criterion is used by Insider Monkey:
“In order to identify the 12 best MLP and pipeline stocks to buy now, we started with the 25 holdings in the Global X MLP & Energy Infrastructure ETF (MLPX) as of December 31, 2020, and we were able to narrow down our list to 12 stocks by using our hedge fund sentiment scores.”
Now, Let’s start with the 12 best pipeline and MLP stocks or companies on the list. Magellan is one of the best MLP stocks to buy. This company is involved in the storage, distribution, and transportation of crude oil and petroleum products in the USA. The quarterly dividend payment has been increased by the company from $1.02 to around $1.03 and this value was maintained for the entire 2020. This particular quarterly amount is in correspondence to the annualized distribution of $4.12 with a 9.0% yield and this would possibly increase if the dividend growth rate of the company will remain at the rate of 11% per year. A huge pullback was experienced by the company because of which the company faced a 30% declining trend in the prices of stock. Another best MLP stock under discussion is Energy Transfer LP. This company is also involved in the transportation of propane pipeline and natural gas. Dakota Access Pipeline development was done by this company. This DAPL is around 1,172 miles of the length of an underground pipeline of oil which starts in the shale oil fields in the Bakken formation and extends all over Iowa and South Dakota to an oil terminal close to Patoka, Illinois. In the September quarter, David Tepper and David Abrams have made an investment of $100 million each in ET. Read 12 Best MLP and Pipeline Stocks To Buy for other stocks on the list.