Investing Topics: Master Limited Partnerships

Here's my take on what the CUI Portfolio and Utility Report Card MLPs had to say at the National Association of Publicly Traded Partnerships' MLP Investor Conference last week.

The National Association of Publicly Traded Partnerships' annual MLP Investor Conference is just around the corner.

By and large, our favorite utilities and other essential-service providers have announced solid first-quarter results, while the market’s low expectations provides a blessing in disguise.

Rising dividends are the essential fuel for higher stock prices. And nothing is more critical for payout growth than healthy, expanding businesses.

Half a dozen European utilities and telecoms cut dividends in March. The happy count from April: Zero. Several companies this month even graduated from the Endangered Dividends List.

Uncle Sam is kicking the can down the road again on the Keystone XL Pipeline. In a non-decision that should have surprised no one, the US State Department delayed a final ruling on the $5.4 billion project.

Energen Corp (NYSE: EGN) will sell its Alabama gas distribution utility to Laclede Gas (NYSE: LG), for $1.28 billion in cash plus $320 million in assumed debt. The company will deploy the estimated $1.1 billion in after tax proceeds to further develop its high potential properties in the Permian Basin.

Every portfolio has winners and losers. The key is knowing when to let the best performers run, and cut the worst loose.

Janet Yellen acknowledged that the Fed might start to raise interest rates six months after phasing out its bond-buying program toward the end of 2014. Take advantage of the selloff in dividend-paying stocks to add high-quality names.

Thanks again to everyone who tuned in to my second on-line chat for Conrad’s Utility Investor subscribers last week. The full transcript of the 4-hour question and answer session is now available on the CUI website by clicking on the “Events” tab from the home page.