Retirees Are Choosing AMLP Over Traditional Dividend Funds For One Clear Reason: Double The Income

"MPLX ( NYSE:MPLX), the largest holding at 13.57%, recently increased its quarterly distribution by 12.5% to $1.0765 per unit. The partnership maintains distribution coverage of 1.3x, generating 30% more cash than it pays out. With Q3 adjusted EBITDA of $669 million and a 41.4% profit margin, MPLX demonstrates exceptional financial strength. The partnership has grown distributions consistently since 2016 without cuts during the 2020 crisis."

"Enterprise Products Partners ( NYSE:EPD) at 12.66% exemplifies dividend aristocrat quality with 25 consecutive years of distribution increases. Its 1.22x coverage ratio and $69.7 billion market cap provide stability. Energy Transfer ( NYSE:ET) has increased distributions nine consecutive quarters, reaching $0.3325 after recovering from 2020 cuts. Western Midstream ( NYSE:WES) grew distributions 82% over three years to $0.91 quarterly, while Plains All American ( NASDAQ:PAA) raised payouts 75%"

AMLP provides an 8.29% dividend yield by holding equity stakes in master limited partnerships that operate pipelines, storage, and processing for oil, gas, and refined products. MLPs are pass-through entities that distribute the majority of cash flow and do not pay corporate income taxes, enabling higher yields. The ETF is concentrated, with its top six holdings representing 77% of the portfolio, so yield sustainability depends on those distributions. Top holdings use fee-based business models and show strong coverage ratios and distribution growth, including MPLX, Enterprise Products, Energy Transfer, and Western Midstream.

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