The midstream sector offers investors tremendous income potential in an environment where attractive yields are hard to come by. Energy infrastructure companies can complement dividend strategies and round out portfolios even amid the toughest market environments.
In the upcoming webcast, Complement Your Dividend Strategies with Energy Infrastructure, Stacey Morris, Director of Research, Alerian and S-Network Global Indexes; and Paul Baiocchi, Chief ETF Strategist, SS&C ALPS Advisors, and will outline the benefits of the energy infrastructure sector and highlight several effective strategies.
For example, investors can look to something like the Alerian MLP ETF (AMLP), which offers exposure to major midstream energy companies that provide robust cash flow and increasing payouts to shareholders and currently yields nearly 9%. The fund seeks to track the Alerian MLP Infrastructure Index, a rules-based index that is float-adjusted and modified cap-weighted.
The underlying index comprises energy infrastructure MLPs that derive most of their cash flow from the storage, transportation, and processing of energy commodities. AMLP invests at least 90% of its assets into the securities within the underlying index and is classified as a C-Corp for tax purposes, utilizing 1099 for tax reporting.
Additionally, the Alerian Energy Infrastructure ETF (ENFR) tries to reflect the performance of the Alerian Midstream Energy Select Index, an index that includes a mix of North American midstream corporations and MLPs that are involved in the storage, pipeline transportation, and processing of energy commodities.
ENFR invests at least 90% of its assets in securities within the index, and it also cannot invest more than 25% of its assets into the securities of one or more publicly-traded partnerships, including MLPs, per tax code.
Financial advisors who are interested in learning more about the energy infrastructure sector can register for the Tuesday, May 17 webcast here.