Steady Cash Flow Girds MLPs for Yield That Beats Treasuries

My inbox has been flooded by Wall Street strategists commenting how Bank of England Governor Mark Carney has co-opted Fed Chairman Ben Bernanke's playbook as his own in today's news conference . Two key points:

1. Thresholds defining how long policy stays accommodative in the U.K. that are strikingly similar to those in the U.S.: unemployment of 7 percent and inflation of 2 percent in the U.K. , vs. 6.5 percent and 2.5 percent in the U.S..

2. A new emphasis on so-called forward guidance, which the policy team at Strategas Research has dubbed "The New QE."

Bottom Line: low rates are likely to persist for at least two more years, regardless of whether central banks rein in their bond purchases. This is a view echoed by Pimco's Bill Gross . Still, one could ask who wants to own 10-year paper paying 2.6 percent.

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Now for the good news: you don't have to settle! There are alternatives for investors seeking yield, even in a low yield environment. For example, there's the 6.3 percent yield generated by our list of select master-limited partnerships:

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MLPs generate cash flow by collecting fees from highly repetitive activities like pipeline transport, oilfield services and monthly rents. They must distribute 90 percent of profits annually on a monthly or quarterly basis, which tends to create a stable return for investors.

Here are ten MLPs that pay dividends yielding more than 5 percent, and have increased payouts at least 5 percent annually during the past five years.

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Fewer than 200 MLPs trade publicly in the U.S., though there's plenty of room in the portfolio for winners. Our group of ten is handily beating the market this year.

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