An ETF For MLPs (AMJ)
In addition to ETFs, the ETF Professor has an affinity for dividends and master limited partnerships (MLPs) are a great source of dividends. MLPs are typically found in the energy sector and these firms enjoy an array of tax benefits that allow them to pay outstanding dividends.
Many MLPs are involved in the transport of natural gas, so if you're tired of getting tossed around by ETFs that track natural gas futures, the Professor recommends the JP Morgan Alerian MLP Index ETN (NYSE: AMJ).
AMJ tracks MLPs such as Kinder Morgan Energy Partners (NYSE: KMP), Enterprise Products Partners (NYSE: EPD) and Plains All American Pipeline (NYSE: PAA). The ETN
pays quarterly coupons linked to the cash distributions paid by the MLPs, making it an attractive options for income investors.
