Plains All American Pipeline, L.P. (PAA), Kinder Morgan Inc (KMI): Buy This MLP When It Hits the Street

As you can see, there is a fair bit of money that winds up in the pockets of our general partners. When they are publicly traded, a lot of that money cycles back to investors’ pockets as well.

Bottom line
Investors love MLPs because of the high distributions, but incentive distribution rights actually help the general partner grow its distribution faster than the MLP itself. Valuation still matters, and not every general partner is a buy, but they do present a unique opportunity for income-oriented investors.

The article 1 Reason to Buy This MLP When It Hits the Street originally appeared on Fool.com.

Fool contributor Aimee Duffy has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Kinder Morgan.

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