Investing Topics: Master Limited Partnerships

Investors should disregard any articles about Kinder Morgan Energy Partners’ tanker acquisition that confuse the global VLCC market with US-flagged vessels that comply with the Jones Act.

Healthy growing businesses produce rising dividends, which in turn push share prices higher: That’s the utility investor’s road to superior and safe long-term returns. And if operating results of our Portfolio companies are any indication, it’s still wide open.

Shares of transmission line operator ITC Holdings (NYSE: ITC) have dropped more than 14 percent from the all-time highs reached in early November. The immediate catalyst: A group of industrial users have demanded the Federal Energy Regulatory Commission cut its allowed returns.

24.

That’s how many stocks we track at Energy & Income Advisor and Conrad’s Utility Investor that yield more than 10 percent.

Only three of the 28 current Conrad’s Utility Investor Portfolio recommendations have yet to report calendar third quarter earnings. That’s plenty of data to identify relevant sector trends, while we assess the health of individual companies.

Don’t hold your breath waiting for an official retraction. But after the past few days’ events, arguments made by Hedgeye and Barron’s against oil and gas producer master limited partnerships are effectively in tatters.

Since the November issue of Conrad’s Utility Investor went to post, five more portfolio companies have reported calendar third quarter 2013 results. Here are the highlights.

Fourth quarter is usually a good time to hold utility stocks. But it’s only rarely a good time to buy, as prices often reach yearly highs.

PVR Partners (NYSE: PVR) earns an exit from my Endangered Dividends List this month. The catalyst was not third quarter earnings results, but the acquisition by Regency Energy Partners (NYSE: RGP) for 1.02 Regency units and a cash payment to be determined at close in first quarter 2014.

AT&T Inc (NYSE: T) was the only Conrad’s Utility Investor Portfolio pick to report numbers last week. Takeaway one is quite positive: The results followed closely those of arch-rival and co-Big Two US communications company Verizon Communications (NYSE: VZ).