Want to Invest in These Ultra-High-Yielding Energy Stocks Without The Tax Complications? Check Out This ETF.

2026-01-27 13:28:00 ET

Master limited partnerships (MLPs) offer investors big-time yields. Popular MLPs Enterprise Products Partners (NYSE: EPD) and Energy Transfer (NYSE: ET) currently yield 6.7% and 7.4%, respectively. That's several times higher than the S&P 500 , which has a 1.1% dividend yield.

MLPs offer investors several other advantages beyond passive income , but they have a major drawback for many investors. These entities send their investors a Schedule K-1 Federal tax form each year instead of a Form 1099 -DIV. These forms often don't arrive until March (or later) and can complicate your tax filing. That's why investors who are interested in the income offered by MLPs should check out the Alerian MLP ETF (NYSEMKT: AMLP) .

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