A 5.5% Yield That's Going Higher

Wealthy Retirement View in Browser Brought to you by The Oxford Club Wednesday, September 23, 2015 Behind locked doors in Silicon Valley... There's a project that's expected to "kill" one of America's most beloved industries. We recently got our hands on some of the details surrounding this project... and now we believe early investors in this Silicon Valley secret could triple their money. Here's the full story. The Safety Net: A 5.5% Yield That's Going Higher Marc Lichtenfeld, Chief Income Strategist, The Oxford Club Master limited partnerships (MLPs) are attractive to income investors because of their high yields and tax-advantaged status. Most MLP distributions are considered a return of capital and are not taxed as dividends in the year received. Rather, the dividend lowers the cost basis of the investment. SafetyNet Pro recently added 34 MLPs to its ever-expanding roster of companies rated for dividend safety. Despite the fact that roughly 85% of MLPs are in the energy sector and that oil and gas have taken a shellacking this year, the majority of the MLPs rated by SafetyNet Pro are quite safe. To celebrate the newly minted MLP SafetyNet Pro ratings, we're going to take a look at one of the more popular MLPs, Enterprise Products Partners (NYSE: EPD). Houston-based Enterprise Products Partners operates 19,400 miles of natural gas pipelines and 5,400 miles of oil pipelines, as well as other energy-related assets. The company does not drill for oil or gas. Rather, it sends the oil and gas of its customers through its pipelines, collecting a fee along the way. In other words, Enterprise Products Partners is not directly impacted by the drop in oil and gas prices. If oil and gas producers want to move their products, they need to pay the owners of the pipelines. Breaking Information on Stock Exchange Bylaw "Section 703" Thanks in part to a little-known stock exchange rule, some pre-retirees and retirees are now collecting six to 21 times more income, over time, than the average investor. It's called Regulation "Section 703," and we estimate not one in 1,000 Americans has heard of it. But you can get all the details on this little-known, portfolio-juicing plan right here. Last year, Enterprise Products Partners had $4.1 billion in distributable cash flow. It paid out $2.7 billion for a payout ratio of 66%. That means that for every dollar of cash flow the company generated, it paid out $0.66 in distributions (MLPs call their dividends distributions). That is well within my comfort zone. I like to see a company's payout ratio below 75%. That way, if business declines, the company still has a buffer between its cash flow and its dividend payments, and it won't have to dip into savings, borrow money or cut the dividend. This year, cash flow is expected to be flat compared to last year's, so, assuming the distribution is a little higher, it's still within the safety zone. Going forward, however, we will need to see cash flow increase if the company raises its distribution. And there's a good chance it will increase the payout to investors. Enterprise Products Partners has an outstanding track record of distribution raises. It has hiked the distribution every quarter for the past 11 years. Investors have come to expect those increases, so if the company were to not boost the distribution in the future, the stock would likely sell off and management would hear about it from unit holders (MLP shareholders are called unit holders). So it's likely that after 44 consecutive quarterly distribution hikes, management is going to do everything in its power to keep the streak alive. Considering the company's stellar track record and ability to pay the distribution, investors should feel comfortable owning one of the top-rated MLPs for dividend safety. Dividend Safety Rating: A If you have a stock whose dividend safety you'd like me to analyze, leave the ticker symbol using the comment link below. You can also search the Wealthy Retirement website to see if I've commented on your stock recently. And be sure to check out SafetyNet Pro to get the dividend safety rating on your favorite stocks. Hoping your longs go up and your shorts go down, Marc Click here to post a comment on WealthyRetirement.com You have mere days before this little company blasts off... There's a devastating $1.5 trillion Wi-Fi shortage coming to the Internet. But one company owns a monopoly on a patented technology that stands to solve this impending threat. This company's revenues are set to rise from $335 million to $15 billion... Its quarterly earnings growth is up 6,135% year over year... And best of all, the stock trades at only around $12! But it won't stay that way for long... For full details on this lucrative opportunity, click here now. Recent Articles From Wealthy Retirement Add $7,000 to Your Retirement Without Spending Anything by Steve McDonald Tuesday, September 22, 2015 Most people leave their 401(k)s behind at their former employers. It costs them thousands. But this simple trick can eliminate many of those expenses. Read On... Why Your Financial Advisor Dumped You by Kristin Haugk Monday, September 21, 2015 "My financial advisor is giving me three months to take my business elsewhere. I have never heard of a financial advisor firing his client. Is that even possible or legal?" Read On... Who's Afraid of the Big Bad Fed? by Kristin Haugk Friday, September 18, 2015 Wall Street's Little Red Riding Hood was skipping along through the forest. She was minding her own business and the markets were fairly calm. Then she was stopped in her tracks by the Big Bad Wolf... er, Fed. Read On... You are receiving this email because you subscribed to Wealthy Retirement. To unsubscribe from Wealthy Retirement, click here. To cancel by mail or for any other subscription issues, write us at: Wealthy Retirement Attn: Member Services 105 West Monument Street, Baltimore, MD 21201 Keep the emails you value from falling into your spam folder. Whitelist Wealthy Retirement. Email: WealthyRetirement@WealthyRetirement.com Website: www.wealthyretirement.com | North America: 855 402 3939; International: +1 443 353 4057 © 2015 The Oxford Club, LLC All Rights Reserved The Oxford Club | 105 West Monument Street | Baltimore, MD 21201 North America: 1 866 237 0436; Fax: 1 410 329 1923 International: +1 443 353 4540; Fax: +1 410 329 1923 Question? Comment? Need help? Contact us here. 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