The oil market has unraveled this year. Crude oil prices briefly went into negative territory because speculators couldn't find space to store oil in light of cratering demand from the COVID-19 outbreak. Meanwhile, several energy companies have already filed for bankruptcy, while many others will probably join them in the coming months. These issues have put tremendous pressure on energy stocks.
One subsector that has taken it on the chin is energy master limited partnerships (MLPs), especially those focused on gathering and processing oil and gas. Most have sold-off sharply, which has pushed the yields on their dividends up to eye-popping territory, with many offering investors an alluring double-digit payout.
However, as enticing as these income streams might seem, investors are better off avoiding these entities for now. Here are three reasons they're too risky.
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Source: Motley Fool
(May 2, 2020 - 1:10 PM EDT)
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