Master limited partnerships (MLPs) are known for their unique tax structure that exempts them from paying corporate taxes. Given the current fluctuations in Treasury yields and the government’s plans to hike corporate taxes, we think it could be wise to bet on Alliance Resource Partners (NASDAQ:ARLP), Westlake Chemical (NYSE:WLK) Partners (WLKP), and Star Group (SGU), which are trading below $30. These MLPs are rated ‘Strong Buy’ in our proprietary rating system. Read on.A master limited partnership (MLP) is a for-profit business venture that operates as a publicly listed limited partnership. This corporate structure is like a limited partnership, but these shares are traded on stock markets. Simply put, MLPs enjoy tax benefits like limited partnerships and offer liquidity like publicly traded securities.
MLPs are considered low-risk investments because they provide steady income in the form of constant cash distribution. Because the Democratic Party has outlined proposed tax hikes on corporations to invest in the nation’s social safety net and climate initiatives, and Treasury yields remain volatile ahead of an upcoming Fed meeting, MLPs could be ideal bets now.
Strong fundamentals and solid growth prospects make Alliance Resource Partners L.P. (ARLP), Westlake Chemical Partners LP (WLKP), and Star Group L.P. (SGU) solid bets now. These MLPs are currently trading below $30 and have a ‘Strong Buy’ rating in our proprietary POWR Ratings system.