MLP
InvestingDefinition
Master Limited Partnership. Pass-through tax structure used mostly in midstream energy (pipelines, storage). Issues K-1 tax forms instead of 1099-DIV — a complication for individual investors.
Big MLPs: ET, EPD, MPLX. Yields 6-9% with modest growth. ETFs use C-corp wrappers (AMLP) to avoid K-1 distribution to retail holders, at the cost of additional layer of tax friction.
Big MLPs: ET, EPD, MPLX. Yields 6-9% with modest growth. ETFs use C-corp wrappers (AMLP) to avoid K-1 distribution to retail holders, at the cost of additional layer of tax friction.