In this post I will be talking about another dividend producing asset that I have invested in. It is based on holding many assets, all related to the "midplay" gas and oil industry. Meaning the trucks, boats and other infrastructure that moves it all around the country and the world. Not so much the refineries, or oil platforms specifically. But more of a holdings of many oil and natural gas companies that are involved in the transport of the resources. Whenever you see a train, truck or boat moving oil its probably involved in this investment if they are a public company.
Source: Yahoo.com
This ETF produces dividends of around 8% and tracks an MLP infrastructure index. These are investments in what is known as “midstream” in the gas industry. Such as pipelines, transport and storage of oil and gas. Similar to REIT etfs (real estate), these produce dividends that is passed off to the shareholder.
Source: marketchameleon.com/Overview/AMLP/Dividends/
Honestly I do not think oil and gas are going anywhere any time soon, so I found it to be a good investment for myself that produces dividends that produce income. I looked into investing into Saudi oil companies around 5.25% . Also looked into companies like Sunoco oil that have wells in places like Venezuela with around 6.34%. And looked at investments here in the US such as Chevron 4.4% and Exxon 3.5% But I felt more comfortable just buying into the midstream investments and they also paid a higher dividend historically.
Source: alpsfunds.com/exchange-traded-funds/amlp
With the instability going on in such places like Saudi Arabia and Venezuela, I do not want to invest capitol on such risks. I also have concerns investing in oil in the Middle east or South America may have extra tariffs or bring unwanted attention to a US citizen as myself. With much of the uncertainty in those regions, I felt the risk was too high. I may be wrong, but Sunoco still operates in South America, maybe I am wrong so let me know.
Source: marketchameleon.com/Overview/AMLP/Dividends/
Pretty steady dividends across a few years. Though back in 2018, 2019, 2020 and 2021 there were some big booms in the payouts.
Source: alpsfunds.com/exchange-traded-funds/amlp
In the end AMLP does hold stock such as Sunoco but in small amounts, so I felt comfortable with that smaller risk vs having everything held in that one stock. Most of what AMLP has is domestic based assets. And I feel that the risk inside the US of such assets is substantially lower than they are in the Middle East or South America at this time.
When it comes to dividend producing mutual funds and index funds, usually there are just a few options with anything above 5% REITS can be close to that sometimes. And then you have assets like BITO that stand out but the average dividend producing ETF is close to 1%. So finding out about AMLP and other midstream index investments have been a nice find and I keep them in my portfoilo.
I just wanted to make my experience with this asset. But do your own research, this is just my own opinion with my experience in the matter.