: Distributions are typically treated as a return of capital, which defers tax liability by lowering your cost basis until the units are sold.
Investing in Master Limited Partnerships (MLPs) can be a powerful strategy for income-focused investors, particularly those seeking high yields and tax-deferred growth in the energy infrastructure sector. As of late April 2026, the midstream sector is viewed as a "compelling income-oriented allocation" due to its critical role in energy transportation and improved financial resilience. Core Investment Thesis for MLPs mlp stocks to buy
: This partnership has delivered double-digit distribution growth for four straight years, supported by a healthy financial profile and expansion projects through 2029. It currently yields roughly 7.35%. : Distributions are typically treated as a return
: A massive midstream operator with a 125,000-mile network, ET is noted for its strong growth prospects and a high forward yield of around 7%. Core Investment Thesis for MLPs : This partnership
: MLPs are pass-through entities required to distribute most of their cash flow to unitholders, often resulting in higher yields than standard dividend stocks.