Finding the best MLP stocks can be challenging when you consider the many high-yield master limited partnerships that have underperformed lately. Furthermore, there have been a lot of acquisitions in the space, and MLP investing has a changing list of players.
But for the big picture, investors have a lot to gain from investing in MLP stocks. These most energy-focused investments have huge dividends and stable operations that make them powerful income plays.
And besides, given the interest rate risk on bonds as rates inevitably rise in the next year or two, most investors should consider some kind of “bond-like stocks” as alternatives to long-term bonds. After all, rising rates means a decline in principle and many supposedly low-risk long-term bond funds could take a significant hit if and when the Federal Reserve raises rates.
If you’re looking for 5% yield or more, here are five MLP stocks worth investing in right now: