Investors seeking exposure to MLPs and energy stocks can look to the First Trust MLP and Energy Income Fund for an actively managed portfolio. The fund announced its monthly dividend on Nov. 21. The fund will pay a monthly dividend of 11.83 cents with an ex-dividend date of Dec. 1. The fund’s dividend yield as of Nov. 25 is currently 8.80%.
The fund is a closed-end mutual fund trading on the New York Stock Exchange. As of Nov. 25, the fund was trading at approximately $16.30. Year to date the fund has a return of 23.30%.
Energy has been one of the market’s top-performing sectors this year. Year to date through Nov. 25 the sector is leading the Standard & Poor's 500 with energy stocks up 23.56%. Performance in the sector has primarily been driven by MLP and energy infrastructure stocks benefiting from increased oil inventory.
In the energy sector, MLPs and energy infrastructure stocks are also some of the top dividend-paying investments. In the First Trust MLP and Energy Income Fund the top three holdings have dividend yields that range from 9.57% to 4.84%. Below are details on the Fund’s top three holdings as of Sept. 30.
Enbridge Energy Partners
Enbridge Energy Partners (EEP, Financial) is a MLP focused on midstream transportation of oil and gas products. The stock has a forward dividend yield of 9.57%. The investment has a year-to-date return of 4.59% with a current trading price of approximately $24.14.
Enterprise Products Partners
Enterprise Products Partners (EPD, Financial) is an MLP focused on midstream transportation of oil and gas products. The stock has a forward dividend yield of 6.30%. It is currently trading at about $25.68 with a year-to-date return of 0.35%.
Magellan Midstream Partners
Magellan Midstream Partners (MMP, Financial) is also an MLP focused on midstream transportation of oil and gas products. The stock has a forward dividend yield of 4.84%. The stock is currently trading at about $69.04 with a year-to-date return of 1.68%.
The entire list of the Fund’s holdings can be found here.
Disclosure: I do not currently hold any shares of the First Trust MLP and Energy Income Fund.
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