Energy Pipeline News reports that its three energy pipeline limited partnership portfolios in 2010 once again outperformed the stock market.
The typical equity fund in the United States in 2010 returned just short of 19 percent in 2010, while the Standard and Poor’s 500-stock index rose 12.8 percent.
By comparison, Energy Pipeline News Portfolios 1 and 2 (tax sheltered, unleveraged) returned 28.92 percent and 29.11 percent respectively in 2010. Portfolio 3 (unsheltered, leveraged) returned 74.75 percent in 2010.
The Energy Pipeline News portfolios invest almost exclusively in energy pipeline limited partnerships such as Kinder Morgan Energy Partners LP (NYSE: KMP) and Copano Energy Partners LP (Nasdaq CPNO). Return is based on both dividends received common unit trades.
Energy pipeline limited partnerships have in general outperformed the Standard & Poor’s 500 Index, which posted total returns of just 4 percent since the beginning of 2000.
Pipeline limited partnerships are regarded as cash cows because they return a higher per-unit payout than typical high-dividend stocks. However, there are tax consequences to investing in them – especially if the investments are made outside of tax shelters such as 401(k) investment retirement accounts (IRAs).
Energy Pipeline News provides comprehensive coverage of the energy pipeline business, with special emphasis on pipeline master limited partnerships as investment vehicles. Visit http://www.energypipelinenews for further information.