Expect These If You Are A MLP Investor
Apparently, investors in BreitBurn Energy Partners didn't like the idea that the company will issue about 16 million common units this week, because the immediate reaction from the market was quite negative. If you are an investor in Breitburn or another MLP exploration and production company like LINN Energy or Vanguard Natural Resources , you need to know something: MLPs have to issue shares from time to time, and selling off shares because of an equity issuance is not the best reason to sell a company.
The reason that MLPs like LINN and Breitburn have to issue shares to raise capital is because of the inherent structure of an MLP. Tune into the video below to find out why this is necessary and how it affects the distribution.
Besides, we all know you are into LINN and BreitBurn for the distribution
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in a special report of nine that fit the bill. Let us help you discover the wondrous world of compounding dividends. Simply click here and we'll give you free access to this valuable investing resource.
The article Expect These If You Are A MLP Investor originally appeared on Fool.com.Fool contributor Tyler Crowe owns shares of LINN Energy. You can follow him at Fool.com under the handle TMFDirtyBird, on Google +, or on Twitter @TylerCroweFool.The Motley Fool recommends BreitBurn Energy Partners. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.