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.

Atlantic Power Corp (ATPWF or ATP-UN.TO)

Atlantic Power is an interesting company involved in the power generation business. It consists of what is known as a stapled unit, which is comprised of an underlying interest in sub debt and an underlying interest in common stock; these are known as an Income Deposit Security (IDS), or other similar type names like Income Participating Security (IPS).

Earnings were announced today and were very strong. Cash flow available for dividend distributions increased over 500%. Currently, APC distributes $0.0884 per month, for a current yield of over 13%.

Recently, APC also announced a buyback program to repurchase up to 8% of the public float of outstanding IPS's.