Unique Energy Play Offering an 11.2% Dividend Yield

The MLP sector has been hit with some serious bad news. Last month, the Federal Energy Regulatory Commission (FERC) announced that it would no longer allow MLP interstate natural gas and oil pipelines to recover an income tax allowance in cost of service rates. Investors did not like the news; the Alerian MLP Index tumbled almost five percent in the trading session following FERC’s announcement.

Still, that doesn’t mean investors should ditch the sector completely. For instance, Usa Compression Partners LP (NYSE:USAC) looks like a great income play. As the company’s name suggests, USA Compression Partners provides an essential service to the natural gas industry—compression. Compression is needed in order to move natural gas into pipelines and processing infrastructure. With nearly 1.8 million total compression unit horsepower, USA Compression Partners is one of the largest independent providers of compression services in the country. The first thing to note here is that, despite being a midstream MLP, USA Compression Partners is not affected by the recent regulatory change.

Source: Income Investors

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