MLP 2012 Sector Breakout? Outlook, Charts, Income (EPD, KMP, MWE, PAA, WPZ, MMP, BPL, EPB, KYN, AMJ, AMLP)

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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%.

If you want to receive the full 24/7 Wall St. 2012 Model Dividend Portfolio, it is being offered in full, with more than 10 different stocks, to those who sign up for our free daily email subscriber list below. Each morning we send our free email list subscribers a snapshot of the key feature stories, the top daily analyst upgrades and downgrades, previews for key events and many other aspects governing your finances.

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

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