Best Dividend Stocks

There is a stock in the energy sector that is currently rewarding investors with a 6.2% dividend yield. Investors not only get to own a part of a sector that has been on fire recently but they get a nice dividend to boot. Crude oil crossed over $105 a share yesterday and continues to maintain its momentum. You can get a part of the energy market too by owning a piece of this Texas company.

The company in question is Kinder Morgan Energy Partners (KMP). Kinder Morgan Energy Partners is a master limited partnership so income generated will be treated as partnership income. Master limited partnerships are basically just publicly traded partnerships. The have the tax benefits of a limited partnership but are traded on public exchanges. This means that you will receive a K-1 instead of a 1099 DIV form. The income will be treated as partnership income and not dividend income. Investors are paid through quarterly required distributions. These have to be paid for the master limited partnership to stay in existence. MLP’s typically pay some of the highest dividends around.

Source: Fav Stocks

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