As credit and leveraged loan spreads continue to compress, master limited partnership search and hire activity has increased among institutional investors.
Atlas Resource Partners and QR Energy both currently have indicated yields higher than 10%. Navios Maritime Partners (9.4%), Linn Energy (9.3%) and Memorial Production Partners (9.2%) round out the top five yielding stocks in the Alerian MLP index.
The current average indicated yield among the 50 constituents in the Alerian MLP index is 6.3%.
However, all top 10-yielding stocks in the index have one-year volatility more than twice that of the exchange-traded fund that tracks the index. That ETF’s yield is currently hovering just above 6%.