Investing For The Long Term, Are MLPs A Good Investment?

Historically, investors buy Master Limited Partnerships, or MLPs, for their high yields. Oil and gas MLPs typically yield 5% or more, which is very attractive for investors seeking income. This is particularly true at a time when interest rates remain extremely low. Fixed income securities are offering low yields, which makes MLPs even more attractive for income. However, the steep declines in oil and gas prices over the past year have caused tremendous price declines among MLP securities. The pervasive fear and constant negativity may persuade some investors to avoid MLPs altogether. But investors should know that the long-term investing case for many high-quality MLPs remains sound.