Wednesday February 01, 2012
by Brian Hicks, editor Wealth AdvisoryMaster Limited Partnerships (MLPs) are unique investments that combine the tax benefits of a limited partnership (LP) with the liquidity of common stock.
MLPs usually provide their investors, the limited partners, with distributions that are similar to dividends, but taxed differently.
MLPs have remained relatively unknown in part because of their low level of institutional ownership and a consequent lack of sell-side attention.
Our latest recommendation, an MLP, is
Crescent Point Energy Trust (
CPG), traded on the Toronto stock exchange. It is the #1 producer in the Bakken on the Canadian side in Saskatchewan.
The company has proven reserves of 340 million boe, with potential reserves of 649 million boe. Crescent is producing over 72,000 barrels of oil and oil equivalent per day.
This is a must-own investment for income seekers, especially from the production of oil. The company is consistent and pays a steady stream of monthly dividends.
At a current price of $45.50, Crescent Point is yielding 6%. We rate Crescent Point a buy.
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