7 High-Yield MLPs to Buy as Oil Prices Climb
After close of a decade of uninterrupted bull market, it's hard to find many stocks that truly qualify as cheap today. But not everything is pricey - you can still find values if you know where to look. And oil and gas master limited partnerships (MLPs), as a sector, are a screaming buy at today's prices.
A combination of low interest rates, a shrinking pool of available shares due to buybacks and mergers, and a general lack of investable alternatives have all conspired to create one of the most expensive markets history.
To put numbers to it, the Standard & Poor's 500-stock index's cyclically adjusted price-to-earnings ratio ("CAPE"), which compares a 10-year average of corporate earnings to today's share prices, clocks in at 31. That's late 1997 levels. Meanwhile, the S&P 500's price-to-sales ratio recently hit 2.0, putting it on par with its levels in 2000 ... at the peak of the greatest bubble in market history.
However, pipeline MLPs are looking inexpensive at the same time they're exhibiting greater quality. After a couple difficult years in 2014 and 2015, MLPs have gotten their leverage under control and started funding their growth projects with
