The Smartest High-Yield Energy Stocks to Buy With $1,000 Right Now

When seeking high-yield dividend stocks, one of the best places to look is in the midstream energy space. Many of these companies are structured as master limited partnerships (MLPs), which pass through their profits to their unitholders and as such don't pay corporate taxes.As a result, most pay out very generous distributions, which are similar to dividends, but much of the payout is considered a return of capital. This portion is tax deferred until the stock is sold and reduces the owner's cost basis. This is a nice benefit, although it does add some paperwork come tax time.The midstream sector as a whole has gone through a lot of changes over the past decade. In the past, companies often had a structure of a general partner (GP) and limited partner (LP) that ultimately was more beneficial to the GP. The way it worked was that GPs would own what are called incentive distribution rights (IDRs), while the LP would pay the GP a percentage of its distributions when they hit certain points.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool