Moreover, MLPs are a popular dividend-paying investment, and the recent rise in yields could indicate an attractive entry point for MLPs – yields and the MLP’s price have an inverse relationship, so falling prices corresponds with higher yields, Han added.
For instance, AMJ has a 6.98% 12-month yield and AMLP has a 8.64% 12-month yield. In contrast, the yield on benchmark 10-year Treasuries is 2.22%.
JPMorgan Alerian MLP Index ETN
For more information on master limited partnerships, visit our MLPs category.
Max Chen contributed to this article.