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AMLP delivers a 7.79% yield and 15% one-year return, nearly doubling Shell’s 4% dividend yield.
Midstream companies earn fixed fees per barrel regardless of oil prices, insulating AMLP’s $14 billion portfolio from commodity swings.
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One of Amazon.com’s biggest attractions for its Amazon Prime subscribers is its internal infrastructure and logistics services. Warehouse hubs and e-cargo bikes in congested big cities allow for the same direct delivery service that those in suburban and rural areas get. Goods often flow within as little as 24 hours from a clicked order onscreen to a delivery at one’s front door.
Infrastructure and logistics are the main conduits for the oil and gas industry to become monetized. Nobody uses either in its extracted form; it is stored, transported, and then refined or processed into various products: gasoline, diesel, LNG, kerosene, etc. Those infrastructure and logistics conduits are categorized as midstream assets, and an entirely independent industry made up of pipelines, tankers, refineries, trucks, storage facilities, and maritime tanker vessels are all components of it. Alerian MLP ETF (NYSE: AMLP) is an ETF focused on the midstream sector that is currently posting some impressive numbers that outperform some standalone energy companies: a 7.79% yield, 13% YTD return, and a 15.3% 1-year return. In comparison, Shell plc is currently sporting a 4.08% yield, 5.57% YTD return, and a 14.45% 1-year return.
Alerian MLP ETF
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AMLP’s midstream companies are essential from transpoirting natural gas to convert into LNG and to various utilities.
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Most, if not all of the 15 midstream stocks owned by AMLP are Master Limited Partnerships. As…
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