Midstream Dividend ETFs Are Showing Their Mettle : vimarsana

Midstream Dividend ETFs Are Showing Their Mettle


June 4, 2021
One of the biggest incentives with midstream energy assets and master limited partnerships (MLPs) is the big yields found in the segment.
For example, the
ALPS Alerian MLP ETF (NYSEArca: AMLP) yields 9.73% as of June 3 and that’s with the benefit of a year-to-date gain of almost 40%. Dividend yields and equity prices move inverse of each other so when AMLP’s price rises, its dividend yield declines.
If there’s a rub, it’s that when midstream dividend cuts arrive, those actions are often painful for investors. In fact, some midstream payout cuts in 2020 were as high as 50% owing to the coronavirus pandemic. Investors considering AMLP want to know that payouts are steady.

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