MLPs are great ways to earn large and growing income and have proved to be capable of market-obliterating total returns. High-quality midstream MLPs -- those involved in pipelines, processing, and storage -- such as Enterprise Products Partners (NYSE: EPD ) have long track records of beating not only the market but also their industry peers, as represented by the Alerian MLP index, but also of increasing income to investors. In the case of Enterprise Products Partners it has raised its payout for 40 consecutive quarters.
Enterprise Products Partners has proved itself capable of building unitholder wealth thanks to high margins and some of the finest profitability in its industry. Particularly I'd like to draw your attention to Enterprise's Return on Assets (ROA) and Return on Equity (ROE), which are more than double the industry average at more than 68 times greater than competitor Energy Transfer Partners. Return on Assets, also called return on investment, represents how good a company or partnership is at converting its investable capital (from both debt and equity) into net profits. Return on Equity represents how well management can generate net income from money given to them by investors. Both metrics are a good way of quickly evaluating the health of an MLP.
Source: Motley Fool
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Posted by D4L | Monday, January 05, 2015 | ArticleLinks | 0 comments »________________________________________________________________
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