Propane Plays For July 4th

As investors are firing up their grills for the Fourth of July festivities, they might want to use some of that propane to power their portfolios. Often overlooked as a fuel source, 4 percent of American homes count propane as their main energy resource and 80 percent of farms use the fuel to power equipment, sanitize the soil from weeds and pests, and dry crops. In addition, propane is listed as a clean alternative fuel under both the Clean Air Act of 1990 and National Energy Policy Act of 1992/2005. Per pound of fuel consumed, propane emits half as much carbon dioxide as coal and produces less hydrocarbons and particulate matter than gasoline or diesel fuels. As we look for cleaner ways to power our homes and vehicles, propane could grow as the fuel source of choice. Investment in propane can be had adding one of three MLP’s to a portfolio. The largest pure-player is AmeriGas Partners LP

and offers a 6.9 percent dividend. Other players include Suburban Propane Partners LP

, which yields 7.10 percent and Ferrellgas Partners LP (

) which yields 9 percent.