It's Money in Your Pocket Every Quarter

Almost all MLPs are energy-related (oil and natural gas) pipelines that distribute oil and gas throughout the country.

MLPs pay healthy dividends–called cash distributions–that put money in your pocket every quarter. And MLPs aggressively aim to keep increasing the amount every year. The MLP I'm recommending pays an 8.3% cash distribution. In times like these, it's nice to know you can count on at least a 7% return on your money no matter what! It's even a step up from Treasuries that pay about 4%. In addition, MLPs are excellent defensive investments during tough times (see also, "Survive the Tax Bomb with These 5 Stocks"). They have outperformed the broader market in three of the last four economic slowdowns.

MLPs are essentially toll collectors. They collect fees to allow oil and gas to flow through their pipelines. The demand for their service has been steadily increasing. But let's say the economic slowdown reduces demand. Will that hurt their revenues?

Not really. You see, pipeline customers pay fixed reservation fees–in advance. Imagine if you had to pay a fixed fee in advance to cross bridges and tunnels–whether you use them or not. That's why you can count on MLPs to perform well even during this economic rough patch. And there's even more good news in store for MLPs.

We Need Billions of New Pipelines

Industry experts estimate that the U.S. needs $100 billion of new natural gas infrastructure over the next decade and billions more in crude oil and refined petroleum products.

The increasing demand for oil and gas has fueled the impressive performance of MLP stocks. Over the past 15 years, MLPs have outperformed the S&P 500 with a cumulative gain of 886% versus 549% for the broader market, and 18.3% versus 11.1% on a compound annualized basis.

So if you're looking for capital appreciation, in addition to dividends, I urge you to consider master limited partnerships. On top of an 8.3% cash distribution, I expect the share price of my recommendation to climb 7% to 9% this year. Add the two together and you have the opportunity to gain 15% this year–that's not bad considering the volatile nature of today's market. And with the prospects for MLPs being as bright as they are, you can pretty much count on that kind of double-digit gain year after year.

Like some other sectors, MLPs are currently undervalued. You can get into my Top MLP recommendation now at a good price and look forward to excellent profits quite soon. Why am I convinced that investors are about to recognize the real value of this MLP and push up the price? Because right now people realize there is a very good chance Obama will be elected.

But what if McCain is elected?

The fact is Master Limited Partnerships will be a smart investment no matter who is elected. The price of oil has shocked Americans. John McCain has made a big point of getting more out of the oil and natural gas resources we have here in the U.S.(see also, "Get Rich from High Oil Prices")

If McCain is elected there will be an even bigger push to increase drilling for oil and natural gas, and pipelines are the means of distribution. And Master Limited Partnerships are the way you can profit from this (see also,oil article). But the best profits begin now–before the election. Before word gets out about all the benefits and profits MLPs offer investors.

Richard Band's Profitable Investing strategy helps investors grow their portfolios safely and securely, while taking advantage of solid growth opportunities. And the reason so many of his subscribers have stayed with him for so long is they've enjoyed both the protection and the profits he has guided them to for almost two decades. Sign up now for a 6 month Risk-Free trial to Profitable Investing, read Richard's special report and consider the MLPs and other investments he is recommending. Now is the time to both protect your investments and position yourself for the gains you need. Start building up your portfolio now.

Also in this issue:

• "Put" Your Money Against This Sector
• Hidden Fees Your Broker Won't Tell You About
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