…Master Limited Partnerships (MLPs).

They're a select class of stock that few investors know exist. While they trade on the NYSE like most blue-chip stocks, they are set up as Master Limited Partnerships (MLPs) and enjoy a tax-deferred status second to none.

Without getting too technical, an MLP is set up with three purposes in mind: (1) to boost dividends, (2) to enlarge capital gains and (3) to increase shareholder value.

MLPs do it all by distributing nearly all profits back to investors—unlike corporations that keep the profits in company coffers and have to pay taxes on them.

Because an MLP pays no tax on income, it's not going to suffer any kind of negative earnings surprise when taxes on dividend income jumps 20%. That's because MLPs don't pay income taxes in the first place!

What's more, shareholders, too, will make out for a similar reason; the income they receive is tax-deferred as well. In other words, shareholders have to pay tax on their income only when they sell their shares.

As a result, as the new taxes could take effect as early as January 21, 2009, the fortunes of MLPs will rise exponentially for two reasons: Because their earnings will largely remain unaffected by the nightmare tax hike that is headed your way, and because throngs of investors seeking tax-relief from the crushing new taxes will simply bid them higher and higher.

What You Must Do Now to Capture Your Share of Profits

Load up on Master Limited Partnerships that are generating lots of cash—and sharing their cash with shareholders in the form of juicy dividends.

I'm speaking of such companies as Kinder Morgan (KMP), who operate pipelines carrying oil, natural gas and other petroleum products.

We added Kinder Morgan to our holdings for three reasons: (1) because of its rock solid financial position; (2) because of its long history of increasing dividends; and (3) because it represented the best value in the energy pipeline sector, a sector that has held up better than almost all others in the stock market meltdown. Let's face it, we're not going to need less gasoline anytime soon.

Today it stands as the perfect example of our time-proven investing approach that maximizes total returns.

But that's only half the story…