Linn Energy LLC (LINE), Berry Petroleum Company (BRY): The 2 Best Upstream MLPs Are on Sale Now

Vanguard now yields 8.8% and sells at only 10.1 times DCF: just as cheap as Linn. And Vanguard has one other advantage: it is not under attack from short sellers. In fact, the stock price has been very stable compared to Linn’s ups-and-downs. It pays to fly under the radar sometimes.

Conclusion

Upstream MLPs are not for everyone. They are levered higher than blue-chip dividend payers and are exposed to oil and gas prices. Both Linn and Vanguard, however, have mitigated this risk through hedging and acquiring already proven fields. Cash flow is visible for several years out on both. For these reasons, Vanguard and Linn are a good well for income investors to draw from.

Casey Hoerth is long LINE. The Motley Fool has no position in any of the stocks mentioned.

The article The 2 Best Upstream MLPs Are on Sale Now originally appeared on Fool.com and is written by Casey Hoerth.

Casey is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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