Most investors think of master limited partnerships (MLPs) as strictly investment vehicles in the energy business, but there are other types, including one that is run by one of the most iconic and legendary investors of our time. While better suited for growth and income investors who are more aggressive, the top MLPs may be a gold mine in the current investment environment.
We screened our 24/7 equity MLP research universe looking for the companies paying the highest dividends, and five stood out for investors looking to generate big passive income streams, but looking to stay away from lower credit high-yield junk bonds. We have listed the companies in order of the highest distribution.
It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Icahn Enterprises
Led by one of the most renowned investors of our time, Carl Icahn, this MLP is quite diversified. Icahn Enterprises L.P. (NYSE: IEP) operates in investment, energy, automotive, food packaging, real estate, home fashion and pharmaceutical businesses in the United States and internationally.
The company’s Investment segment invests its proprietary capital through various private investment funds. The Energy segment refines and markets transportation fuels, and it produces and markets nitrogen fertilizers in the form of urea ammonium nitrate and ammonia. Its Automotive segment is involved in the retail and wholesale distribution of automotive parts, as well as offering automotive repair and maintenance services.
Icahn Enterprises Food Packaging segment produces and sells cellulosic, fibrous and plastic casings that are used for preparing processed meat products. Its Real Estate segment is involved in the rental of retail, office and industrial properties; construction and sale of single-family homes and residential units; and golf and club operations. This segment also engages in hotel and timeshare resort operations.
The Home Fashion segment manufactures, sources, markets, distributes and sells home fashion consumer products. Its Pharma segment offers pharmaceutical products and services.
There is no Wall Street coverage for the stock, likely because Icahn does so much business across the street that banks and brokerages want to avoid any conflict of interest. However, Motley Fool included the company in a recent article on top high-yielding stocks and noted this: “The company’s enormous yield is the core reason its shares have consistently trounced the broader market over the past 22 years. Icahn Enterprises has doled out 70 straight quarterly distributions to shareholders.”
Investors receive a 14.88% dividend, and Icahn Enterprises stock will go ex-dividend on Friday. There is no consensus target due to the lack of Wall Street coverage. The shares closed on Tuesday at $54.07.
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