Investing Topics: Master Limited Partnerships

Claims that Kinder Morgan Energy Partners LP (NYSE: KMP) is a "house of cards on the verge of collapse" amount to nothing more than a cry for attention.

Investors shouldn’t automatically assume that dividend-paying equities are inherently safer than tech stocks or other cyclical fare. When an income-oriented stock cuts or eliminates its dividend, investors not only suffer a diminution of income but also a significant loss of principal during the subsequent selloff. Understanding a company’s underlying business and its growth prospects are essential to separating the winners from the losers.

Investors are dumping dividend-paying stocks of strong companies due to misplaced fears about interest rate sensitivity. That’s opening up new opportunities in our favorite stocks, but be patient with prices.

Stocks around the globe are running into trouble in this slowing economic environment, It's been especially tough on companies that rely on emerging markets for their growth.

There weren't any big surprises in our Focus List earnings reports this quarter, which is the way we like it. But there are a lot of bargains in all three portfolios that you can move into now. The story of essential service stocks is just beginning.

The pullback in master limited partnerships after the Federal Reserve announced plans to scale back quantitative easing gave investors an opportunity to buy Kinder Morgan Energy Partners LP (NYSE: KMP) at a favorable price.

The book is now almost closed on calendar first quarter 2013 earnings for my 45 Target List stocks. Utilities and other essential services stocks had a big run to start 2013. As a result, several target list companies have surged well beyond what I’d pay for them. Have a look at my current advice.