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Master Limited Partnerships (MLPs)

MLP's have enjoyed excellent total returns over the past 10 to 15 years, on the back of the U.S. energy renaissance. Master limited partnerships trade on public exchanges with active daily volume thereby providing beneficial liquidity to the investor. MLPs pay out ~90% of their available cash flow in the form of distributions and approximately 80% of which is tax deferred. The partnerships typically yield in the 5.5-7.5% range and generally grow dividends in the 3-7% range annually. For these reasons, a well-managed MLP can be an excellent tax deferred investment.