I've been moving towards an investment strategy that includes stocks with a good dividend and a long history of increasing it. While researching companies I noticed a lot of MLPs pay a good dividend but read they can be taxed even in a retirement account. In another thread they were described as overvalued. I've found one I really like but want to know the pros and cons of owning one before I buy. The company I'm considering is coal mining company



Alliance Resource Partners LP, symbol ARLP

Price 40.41, Near a 52 week low

Div 6.43%

PE 8.45

13 year history of increasing dividend payments with a 10.8% dividend growth rate over 10 years

Increasing revenue and net income

Increasing free cash flow



The only negative I see is their cash on hand has dropped over the last 4 years and they are a MLP

Give your CPA a call, he will tell you all about K1's being as mlp's are a partnership.

as far as the intrinsic valie of any capital market security, that really depends on what you use to value somthing.

I don't have a CPA yet but I have filed with K1s before. I owned USO for a while but I think that was different from a MLP.



 

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