Plains All American Pipeline, L.P. (NYSE: PAA) is valued at $10.5 billion, and its $70.32 price compares against a price target of $72.08 and its 52-week trading range is $54.90 to $70.16. The implied distribution per year based on the last payout was 5.7%.
Williams Partners L.P. (NYSE: WPZ) is worth some $17.4 billion and its $59.98 price compares to a target of $60.81 and a 52-week range of $44.81 to $61.22. The implied distribution per year based on the last payout was about 5.2%.
Magellan Midstream Partners, L.P. (NYSE: MMP) is worth $7.4 billion and its $65.70 price is just under the $66.64 consensus price target. Its 52-week range is $51.00 to $66.12. The implied distribution per year based on the last payout was only about 4.9%.
Buckeye Partners, L.P. (NYSE: BPL) is valued at $5.9 billion and its $63.30 price is pretty far under the consensus price target of $70.44. It has a 52-week range of $54.51 to $68.92. The implied distribution per year based on the last payout was 6.6%.
El Paso Pipeline Partners, L.P. (NYSE: EPB) is valued at $6.9 billion with a $33.45 share price. This remains as one of the largest discounts to the consensus price targets with a target price of $39.00. Its 52-week range is $31.34 to $38.36. The implied distribution per year based on the last payout was 5.9% based on today’s price.
Because many of the largest MLPs are so close to or above the consensus price targets, we recently gave the 24/7 Wall St. Model Dividend Portfolio some changes to focus more on the funds and ETFs. The Kayne Anderson MLP Investment Company (NYSE: KYN) employs some leverage with a distribution of about 6.9%. The JPMorgan Alerian MLP Index ETN (NYSE: AMJ) is a non-leveraged ETF with a distribution of about 5.2%, and ALPS Alerian MLP ETF (NYSE: AMLP) has a distribution of about 6.3%.
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If you want a review of the chart analysis, we included charts from stockcharts.com on the JPMorgan Alerian MLP Index ETN (NYSE: AMJ) and then on the Kayne Anderson MLP Investment Company (NYSE: KYN) below. If the prices of these instruments improves any further, the chartists and technicians are going to be calling for a sector break-out possibly to challenge highs seen earlier in the year. As long as Bernanke’s promise of keeping interest rates extremely low for at least another year and a half then it seems like investors will chase this sector around for another three to six months.
As a final reminder, the 2012 presidential and congressional election can have a big impact on this sector. The MLP sector is a realm where “the one-percenters” are invested in much more than the common worker. Issues from taxation, an energy policy, a refocus of alternative energy paid for by penalizing oil and gas outfits, and then just ongoing rhetoric could all impact the future of the sector. For now, it seems like a chart breakout could be forming.
JON C. OGG