The Global X MLP ETF Is Offering a 7.8% Annual Dividend. But Is the Stock Really a No-Brainer Buy?

The Global X MLP ETF (NYSEMKT: MLPA) boasts a trailing dividend yield of 7.8% and provides passive income-seeking investors with a compelling way to secure quarterly income. Still, yields are far from being the only or the most reliable metric for determining total returns for investors. Let's take a closer look at the ETF and what it has to offer.The ETF invests in master limited partnerships (MLPs) operating in the midstream pipelines and storage facilities industries. MLPs trade publicly, but they carry the benefits of limited partnerships for taxation purposes. MLPs don't pay corporate taxes, so they pass on more of their income to investors in the form of distributions.Since the ETF only invests in midstream pipeline and storage facility stocks, you can think of the ETF as offering a constant stream of income from its fee-based contracts, whether they be from gas transportation based on volumes of gas, take-or-pay fees, or gas storage fees, directly to the investor in the form of distributions.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool