The Market Loves These High Flying MLPs -- Should You?

The year-to-date rise of Phillips 66 Partners and Valero Energy Partners has been impressive to say the least. While the S&P Index is up less than 7%, and the Alerian Index is up less than 13%, the aforementioned master limited partnerships have climbed 106% and 54%, respectively.

Is all that glitters gold? Maybe not. For one thing, these MLPs both hit the market with very low yields, and despite a hefty distribution increase at Phillips 66 Partners, the unit price appreciation has driven its yield to a level that is not at all common for MLPs. Given the respective corporate sponsorship of Phillips 66 and Valero , could a compelling growth story entice investors anyway? The slideshow below pits these two MLPs head-to-head to find out.

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

The article The Market Loves These High Flying MLPs -- Should You? originally appeared on

Aimee Duffy has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story