This Top MLP to Buy Pays a 6.8% Dividend Yield and Could Grow 117%

By , Associate Editor, Money Morning

It's no secret that we're fans of MLPs here at Money Morning. That's why we're always on the hunt for a top MLP to buy.

In the past, we've talked about firms like Magellan Midstream Partners LP (NYSE: MMP) and Energy Transfer LP (NYSE: ET) for their great dividend yields.

MLPs are investments focused on commodities like natural resources, especially oil and gas pipelines. What makes them appealing is their consistent cash distributions and tax advantages.

MLPs don't need to pay corporate taxes. Instead, they distribute their profits directly to investors. No corporate taxes mean greater potential distributions can be paid out to limited partners, like you. That's how MLPs can offer higher dividend payouts than traditional stocks.

Our top REIT for 2020 could climb to five times its current price, and shares yield a solid 7.9%. Click here to get the Best REIT to Buy for 2020

Because MLPs operate in the midstream sector – making money from the transportation and storage of oil along pipelines – they're stable investments. This is especially true in the United States, as the country has grown into the world's largest oil producer with a record-breaking 12.6 million barrels per day, according to data from YCharts.

And the EIA reports that U.S. oil production is expected to grow to 14 million barrels per day through 2040 – meaning U.S. MLPs will continue to offer stable profits for income-seeking investors.

While MLPs are known for their excellent dividend payouts, investors have struggled to find MLPs with serious growth potential.

That's where this week's best MLP to buy comes into play.

Not only does it yield a massive 6.8%, but it has the potential to soar 117%…

This Top MLP to Buy Now Pays a 6.8% Dividend Yield

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About the Author

Daniel Smoot is a Baltimore-based editor who helps everyday investors with stock recommendations and analysis. He regularly writes about initial public offerings, technology, and more. He earned a Bachelor's degree from Towson University.

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