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5 MLPs Piping Out Big Income

Want to stay out in front of interest rates? Consider these MLPs

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Access Midstream Partners

Access Midstream Partners ACMP MLPDividend Yield: 4.1%

While you can debate whether beaten-down natural gas producer Chesapeake (CHK) is a buy or just junk, its former MLP subsidiary Access Midstream Partners (ACMP) is very much in the “buy, buy, buy!” camp.

The MLP’s asset base — all 6,700 miles worth of pipelines — is right in the heart of America’s natural gas revolution. That includes exposure to all the big boys like the Marcellus, Utica, Haynesville and Barnett shales. More importantly, it continues to add new gathering lines and processing plants in these regions to take advantage of all the new drilling activity going on. That first mover status will help it continue to increase cash flows and dividends going forward.

Not that Access really needs them. Since its first distribution in 2010, ACMP has managed to double its payout for unitholders. The latest bump was a huge 23% increase vs. the third quarter of 2012 or a 10% sequential increase. That bump has ACMP units yielding a delicious 4.1%

And given Access’s focus on growth, those payouts should rise even more in the future.

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