For investors looking for strong dividend yields, master limited partnerships (MLPs) remain a powerful portfolio tool. After all, the corporate structure is designed to kick out large, tax-advantaged dividends to unit holders and the sponsoring general partners. Those high yields often average in the 4% to 7% range — handily beating the pants off of Treasury bonds.
Even better, MLP distributions typically grow faster than rates of inflation — meaning they are a perfect way to play rising interest rate environments. Exactly the kind of environment we’re about to enter.
And given those strong, stable and growing dividends, it’s no wonder why more and more MLPs are finding their ways into investor portfolios.
But as they’ve become more popular, so has the sheer number of MLPs on the market. So how does an investor choose? Luckily, here at InvestorPlace we’ve done some of the legwork. Here are four MLPs that have a distribution yield of 4% or more.