Master Limited Partnerships (MLP)

• Created in 1986
• Enterprises engaged in certain businesses, i.e. natural resources, energy, pipelines...designed to encourage infrastructure investment
• Investors are limited partners, allows use of depreciation to reduce taxable liability. Dividends are essentially tax free until MLP is sold.
  

http://www.dailywealth.com/archive/2008/jun/2008_jun_13.asp

They are not subject to swings in commodity prices, since business is based on pipeline usage and volume, and also tend to be recession-resistant, as domestic use of energy is always increasing. The best known MLP's are Enterprise Production Partners (EPD) and Kinder-Morgan (KMP), both yield over 7%, but stock prices have also done well over the last 10 years. Total return has far outpaced performance of the SP500.