Master limited partnerships, or MLPs, are companies that integrate the tax benefits associated with private partnerships with the liquidity advantages of publicly traded stocks. Because of their unique corporate structure, MLPs return a greater percentage of income earned to investors through cash distributions or dividends. Due to these factors, MLPs generally offer investors a higher-than-average dividend yield, making them ideal for income-seeking investors.
Kimbell Royalty Partners (KRP) is one such MLP. Valued at a market cap of $1.41 billion, KRP provides shareholders with a dividend yield of 10.4%. Over the past three months, the shares have gained nearly 11%, but still trade below their recent highs near $20.
