AMLP: For High-Yield Investors Seeking Defensive Energy Exposure

Louis Gerard2.45K FollowersFollow5ShareSavePlay(10min)Comment(1)SummaryThe Alerian MLP ETF offers concentrated exposure to top North American midstream MLPs, bypassing K-1s and individual company risk.AMLP provides a robust 7.5% distribution yield with a 5-year CAGR of 6.56%, supported by disciplined capital allocation and strong distribution coverage.Structural tailwinds—Permian growth, NGL export expansion, and AI-driven gas demand—support continued cash flow and distribution growth for AMLP’s holdings.I rate AMLP a Strong Buy for high-yield investors seeking defensive energy exposure, despite its higher 0.85% expense ratio and C-Corp tax structure. thexfilephoto/iStock via Getty Images Introduction After covering all of the largest names in the midstream industry and, more particularly, MLPs, I want to dive into how investors can get a basket exposure to all of those great companies without the hassle ofThis article was written byLouis Gerard2.45K FollowersFollowAs a detail-oriented investor with a strong foundation in finance and business writing, I focus on analyzing undervalued and disliked companies or industries that have strong fundamentals and good cash flows. I have a particular interest in sectors such as Oil&Gas and consumer goods. Basically, anything that has been unloved for unjustified reasons that could offer substantial returns. Energy Transfer is one of those companies that I came across when no one wanted to touch it and now I can't resolve myself to sell it. I will always focus more on long-term value investing but I can sometimes lose myself in possible deal arbitrage such as with Microsoft/ Activision Blizzard, Spirit Airlines/Jetblue (that one still hurts), and Nippon/U.S. Steel (perfect exit at $50.19). I tend to shun businesses that I can't understand either high-tech or certain consumer goods such as fashion (give me a Levi's jeans). I don't understand why anyone would invest in cryptocurrencies as well.

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