Skip to Content
Stock Strategist

Is There More Value in the Pipeline for MLPs?

MLPs had a great run this year but may still be attractive to income investors.

Mentioned: , , , , , ,

Note: We're re-featuring this article, originally published on Dec. 15, 2010, as part of our Retirement Income Week.

Master limited partnerships have been on a tear over the last year, with Morningstar's MLP Composite Index up 33% over the trailing 12 months through Jan. 25 versus a 20% gain on the S&P 500. The MLP Focus Index consists of the 20 MLPs in our coverage universe trading at the greatest discount to our risk-adjusted fair value estimates. It's up 36% over the trailing 12 months. Looking across our MLP investment landscape, the space looks fully valued, if not perhaps a touch richly valued. Given this outlook, are there compelling reasons to initiate new MLP positions currently?

To view this article, become a Morningstar Basic member.

Register for Free

Jason Stevens does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.