MLPs: Win Win Win Investment
Market Updates
12/17/20
Master Limited Partnerships (MLPs) in the midstream, pipeline space are in the early innings of what we think will be a 9-inning ball game. The reason to own them is threefold: 1) They are selling at a historically low price to discounted cash flow; 2) They have a sustainable current yield that is more than 10x stocks and bonds; and 3) They will have future free cash flow yields estimated to be 3x higher than the S&P 500 Index. We believe the MLP space today is a win win win investment scenario.