3 Dividend Stocks Worth Holding for the Long Haul
The three master limited partnerships are great long-term holdings.
Overview
When it comes to dividend investing, my absolute favorite sector is midstream master limited partnerships (MLPs). These stocks offer both high yields and increasing distributions.
As MLPs, the correct term is actually distributions, not dividends, as typically a large percentage of their payouts are deemed a return of capital and are taxed deferred until the stock is sold (if your cost basis reaches zero, you'll also start paying taxes in the future). It does come with a little extra paperwork come tax time, but it is well worth it, in my view.
Details
Let's look at three of my favorite midstream MPLs, which are businesses that ship, store, or process oil.
Source
Originally published at www.fool.com.
Related Articles
- Fed Chair Kevin Warsh Sends a Blunt Warning to Wall Street. What Should Investors Do?
- The Stock Market Is on the Verge of Doing Something That's Never Been Observed in 155 Years -- and It Has Worrisome Ramifications for Wall Street
- 3 Vanguard ETFs Poised to Outperform as the Market Shifts Beyond Big Tech