There's nothing like an investment that pays off even if there's no capital appreciation. That's the appeal of renting out your home instead of selling it – you get income along with and investment. The way markets are behaving right now with the Fed rate hike delayed once again, most likely until 2016, and uncertainty driving investor decisions, picking a stock that can pay out in more than one way is a huge benefit.
Limited partnership entities differ from traditional corporations in the sense that they are obligated to pass on a lion's share of the profits to shareholders. That gives them an edge when it comes to dividend yields and makes them defensive even if they're not necessarily in a defensive sector of the economy.
The oil and gas pipeline industry might not seem like a defensive environment given what's happened with commodities and energy prices, but this sub-sector operates a little differently. Pipelines are more on the midstream segment of energy operations giving them a more stable business with steady growth prospects regardless of energy prices. Continue reading "This Pipeline LP Pays You Just To Hold It"