A master limited partnership (MLP) is a for-profit organization that operates as a publicly traded limited partnership. Simply put, MLPs provide tax advantages similar to limited partnerships and provide liquidity similar to publicly listed securities. In addition, MLPs distribute most of their income among their partners.
Although most MLPs have moderate growth rates due to their capital-intensive operations, they often deliver consistent returns on investment. Furthermore, because analysts expect the Treasury yield curve to be flat by mid-year, MLPs could be an ideal choice for fixed-income investors due to their strong earnings yields.
