All posts by PARKERYL

Investing isn’t just about picking winners; it’s about avoiding costly mistakes. Barry Ritholtz, a financial expert and author of the 2025 book How Not To Invest, argues that many investors lose money not because they lack skill but because they fall into predictable traps. Ritholtz is the chief investment officer of the financial planning and asset management firm Ritholtz Wealth Management.

“You don’t have to be smarter than everyone else—just less stupid,” he said.

So, what are some of these wealth-destroying mistakes, and how can you steer clear of them?

1. Falling into the Forecasting Trap

Investors love predictions—price targets, earnings forecasts, and market outlooks. But Ritholtz warns, “The media thrives on feeding ‘the daily beast’—constantly churning out content to keep people engaged.”

In reality, most economic forecasts fail because markets are inherently unpredictable and influenced by random events.

How To Avoid It:

• Curate a reliable network. “Build your own ‘all-star team’ of experts who don’t just get lucky but have a defensible, rational process,” Ritholtz said.
• Ignore bold predictions. Specific forecasts might sound convincing, but they often mislead. Instead, focus on time-tested investment principles and take seriously experts who admit that they don’t know.
• Think probabilistically. Investing is about putting the odds in your favor over time.

2. Emotional Investing

Market volatility triggers fear and greed, leading to rash decisions. “Plan ahead when you have the luxury of being rational and objective—not when the market is on fire,” Ritholtz said.

The worst mistakes—panic selling or chasing a hot stock—often occur when emotions take over.

How To Avoid It:

• Automate investing. Setting up regular contributions through dollar-cost averaging or using an automated approach like a robo-advisor removes emotional decision-making.
• Have a crisis plan. “Think of it like a fire drill,” Ritholtz said. “You don’t figure out what to do only when the flames are already at the door.”
• Look long-term. Markets recover. Reacting to short-term swings can derail long-term success.

3. Focusing Too Much on Avoiding Losses

Much of Ritholtz’s strategy is about avoiding unnecessary mistakes. But an excessive fear of risk can be just as damaging as reckless investing. “Overly cautious investors often miss good opportunities,” he said. Sitting on too much cash or refusing to invest can mean losing out to inflation and market gains.

How To Avoid It:

• Find balance. Don’t take extreme risks that put your financial future in danger, but avoiding reasonable risk entirely is its own mistake.
• Invest for your goals. A well-diversified portfolio tailored to your risk tolerance can help you stay in the game.
• Get expert guidance. If your finances are complex, consider a competent financial advisor, accountant, and attorney.

But Ignore ‘Spending Shamers’

Spending wisely is just as important as investing wisely. Many personal finance gurus today push extreme frugality, encouraging people to live below their means, but Ritholtz argues that financial health isn’t about denying yourself joy—it’s about making smart, intentional choices. “Ignore the spending shamers,” he said. “Being responsible doesn’t mean you can’t enjoy life.”

So, live within your means, but maximize it. “Look, if you want a boat—OK, but buy the one you can afford and will use. Make sure you’re getting value from your purchases,” he said.

How To Avoid Overspending:

• Set financial priorities. Decide what truly matters to you and allocate funds accordingly.
• Avoid lifestyle inflation. Just because you make more money doesn’t mean you have to spend more.
• Spend on experiences, not just stuff. Long-term happiness often comes from meaningful experiences rather than material goods.

The Bottom Line

The biggest investment mistakes aren’t about picking the wrong stocks, they’re about falling into predictable traps. “If you avoid unforced errors, you’ll already be ahead of most investors,” Ritholtz said. Focus on long-term strategies, manage risk wisely, and let the markets work in your favor.

Editor’s note: “The Top Stocks to Buy Under Trump Come From Elon Musk’s ‘BRAIN’” was previously published with the title, “The Elon Musk Method: Your Path to Peak Performance in 2025” It has since been updated to include the most relevant information available.

While Donald Trump’s second presidency is off to a volatile start on Wall Street, we think the volatility is creating some fabulous buying opportunities. And when it comes to looking for the top stocks to buy under Trump, I have a simple idea: Follow Elon Musk.

The world’s richest man has allied himself very closely with Trump. That relationship has paid off, with Musk being named the head of the newly created Department of Government Efficiency (DOGE). He’s been spending a lot of time down at Mar-a-Lago. Some are even jokingly calling him “President Musk.”

His sphere of economic and political influence, if you will, seems likely to grow significantly, to arguably unprecedented levels, in 2025.

What will Musk do with that sphere of influence?

Probably a lot. But among some of the things he may do is support the industries in which he does business.

Makes sense, right?

Indeed, this appears to be already happening with Elon’s biggest company, Tesla (TSLA).

Tesla has recently made a pivot to becoming an self-driving company with the reveal of its Cybercab and Robovan cars—two autonomous cars without steering wheels. Musk’s big vision for Tesla is to roll out a robotaxi fleet of these Tesla cars to autonomously drive people all around the map.

And just recently, reports leaked that the Trump administration is considering easing regulations on self-driving cars to make it easier for companies like Tesla to roll out such autonomous fleets.

If those regulations are reduced, of course, the result will be rapid growth across the whole autonomous vehicle industry, including at Elon’s crown jewel, Tesla.

We think that is merely a microcosm of what could happen in 2025 and 2026.

The Elon Musk Playbook for 2025

Here’s what we anticipate as Musk assumes a position of power within the next administration.

He’ll likely exert his sphere of influence to help pass legislation that benefits the various industries in which he does business. Those industries will experience rapid growth, and many of the businesses therein will see enormous success.

So, maybe the best investment strategy to find the top stocks to buy under Trump in 2025 is to just follow Elon Musk.

What does that strategy involve?

I like to call it Elon’s “BRAIN” plan, which stands for the five big industries in which Elon Musk is involved:

• Biotech,
• Robotics,
• Autonomous Vehicles,
• Interplanetary Travel, and
• Nuclear.

Top Stocks to Buy Under Trump: Biotech

Elon is heavily involved in the biotech world with his promising startup Neuralink — a neurotechnology company creating implantable devices that connect the human brain directly to computers or external devices, enabling communication between the nervous system and digital systems.

The biotech world is heavily regulated, and those regulations can stall technical progress. In 2022, for example, Musk’s Neuralink applied to start human trials and was rejected by regulators.

Maybe Musk can exert his influence to help reduce the regulatory hurdles in the biotech world, thereby speeding the progress of biotech breakthroughs and potentially serving as a huge tailwind for biotech stocks.

For that reason, among various others, we like biotech stocks for 2025.

One potential pick in that space: Tempus AI (TEM). It’s a company at the cutting edge of applying AI to healthcare to create a new era of personalized healthcare. We think they’re doing some very cool stuff. If the biotech industry does catch fire in 2025, we expect TEM stock to lead the way.

Robotics

Musk has also recently leaned heavily into the robotics world, creating a new humanoid robot at Tesla called Optimus, which he believes will be the biggest part of the Tesla business over time. While robotics are still in their infancy, one can imagine that the deployment of a humanoid robot will face massive regulatory hurdles.

Maybe Musk will exert his influence to reduce those hurdles. If he does, that could create a clearer path for mass robotics adoption, which would drive more talent and money into the robotics industry, speed up technical progress, and ultimately serve as a tailwind for robotics stocks.

That’s one reason we really like robotics stocks for 2025, too.

A potential pick in that space is Symbotic (SYM). They make full robotic systems to automate fulfillment in warehouses and are already working to automate pretty much all of Walmart’s regional distribution centers in the U.S. We think that stock has a bright future.

Autonomous Vehicles

We’ve already discussed Elon’s involvement in the autonomous vehicle space. He is essentially betting Tesla’s whole future on autonomy, and we think Elon, therefore, has a huge financial incentive to help make self-driving cars not just a reality across America, but a ubiquity, too.

Tesla stock is an attractive option in the world of autonomous vehicles, but our favorite pick may be Aurora (AUR), an autonomous trucking startup set to launch America’s first fully self-driving truck in just a few months.

Aurora recently announced a big partnership with Nvidia (NVDA) to help accelerate its autonomous trucking ambitions. Very cool firm.

Interplanetary Travel

And then there’s interplanetary travel—or, more broadly, the space economy—which Elon is very much involved in through his second-biggest company, SpaceX.

We think it is entirely possible that a push emerges over the next few years to increasingly privatize space travel and exploration, which could lead to an increasing number of space business contracts for companies like SpaceX, Rocket Lab (RKLB), Planet Labs (PL), AST SpaceMobile (ASTS), and more.

Those space stocks could see huge success in 2025.

Nuclear

Lastly, there’s nuclear. Nuclear energy has emerged as a favorite energy source among Big Tech firms to power their energy-intensive AI data centers. Elon Musk is not directly involved with any nuclear energy company, but he is involved with creating massive AI data centers, and he has said previously that shutting down nuclear plants is “total madness” and that modern nuclear power plants are “extremely safe.” He has also said that he is a “believer in nuclear fission.”

From the looks of it, Musk is pro-nuclear. Nuclear energy, of course, is subject to massive regulations. For example, just a few months ago, the Federal Energy Regulatory Commission rejected a proposal from Amazon to secure more power for one of its major data centers from a nearby nuclear power plant.

Musk and Trump could collectively reduce those regulations and allow for more nuclear energy plant construction and power generation. That would, obviously, provide a huge boost to nuclear energy stocks like Constellation Energy (CEG) and Vistra (VST).

The Final Word on BRAIN: the Musk Method

The big takeaway here is that perhaps the best investment strategy in 2025 is to follow Elon’s BRAIN: invest in biotech, robotics, autonomous vehicles, interplanetary travel, and nuclear energy—the five industries in which we believe Musk has the most incentive to boost through political means.

Perhaps our favorite part of the Elon BRAIN strategy is the “R”—robotics—mostly because it appears to be Elon’s favorite, too.

Elon said on a conference call with Wall Street a few weeks ago that he thinks “Optimus will be the overwhelmingly value of [Tesla]” and that “Optimus has the potential to be north of $10 trillion in revenue.”

We think robotics represent the next big breakthrough in AI, and Elon is betting the farm on it with Optimus.

Does that mean you should buy Tesla stock?

Maybe, but we think there are better ways to play Optimus…

Learn all about these lesser-known investment opportunities.

_{On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.}

P.S. You can stay up to speed with Luke’s latest market analysis by reading our Daily Notes! Check out the latest issue on your Innovation Investor or Early Stage Investor subscriber site.

Written by the Market Insights Team

On both sides of the border

Kevin Ford – FX & Macro Strategist

A Bank of Canada (BoC) survey last week revealed that due to tariff tension with the U.S. more Canadians are worried about job security, especially in industries that rely on exports to he U.S. People are also cutting back on non-essential spending. At the same time, businesses are reducing investments in response to rising inflation expectations. Over in the U.S., the University of Michigan (U-Mich) survey showed a drop in consumer confidence and a rise in inflation concerns. It’s clear that tariff tensions are weighing heavily on both sides of the border. While sentiment surveys aren’t always the best indicators of future economic activity, unexpected trade uncertainty often ends up slowing growth in the following quarters.

Canada’s February Consumer Price Index (CPI) comes out today, with a year-over-year projection of 2.2%. This will help reveal whether inflation expectations are already influencing prices or if we might see disruptions from tariffs in the months ahead. For now, things on the tariff front should stay quiet until April 2^nd, when the U.S. is expected to announce its reciprocal tariffs. Word has it the U.S. plans to roll out 25% tariffs across the board for Canada, along with a host of new measures, according to top officials who spoke with a Canadian delegation.

The United States is currently adding a 25% surcharge on Canadian steel, aluminum, and goods that don’t comply with the CUSMA/USMCA trade deal. In future negotiations, the U.S. and Canada will tackle some major sticking points, like Canada’s 3% digital services tax on online revenue and its dairy quotas—issues that have caused friction since the 2018 USMCA revisions. Even without new tariffs, though, it doesn’t look like this trade dispute will get fully resolved until the trade agreement is renegotiated. In the meantime, the uncertainty is expected to put pressure on the Canadian economy. All eyes are on April 2^nd, when the U.S. administration’s tariff strategy will become clearer, setting the stage for future trade talks.

Retail sales miss weighs on dollar

George Vessey – Lead FX & Macro Strategist

US equity indices have started the week in the green and the US dollar in the red as investors continue to weigh trade policy uncertainty, recession risks and geopolitical developments. Volatility across stocks and currencies continues to subside following the mixed US retail sales report yesterday, but plenty of catalysts this week could challenge this trend.

On the macro front, US retail sales rose 0.2% in February, less than forecast, and January data was revised to a 1.2% decline, the biggest drop since July 2021. Seven out of the 13 categories saw a decline in February, whilst non-store retailers, a proxy for online spending, posted the largest jump since late 2023. While the hard data are holding up somewhat for now, sentiment and forward-looking indicators show an elevated slowdown risk. For example, we saw a sharp drop in New York state manufacturing activity, whilst the prices paid component jumped to its highest level in over two years. Combined, this adds to evidence that tariff risks are hitting consumer spending whilst reigniting inflationary pressures for businesses. The market reaction was fairly muted, but the day ended with the dollar index sliding back towards 5-month lows and Treasury yields slipping across the curve.

Balancing growth-related concerns with the need to reassure investors of the economy’s resilience presents a significant challenge for Federal Reserve Chair Jerome Powell this week. He is scheduled to address the public following the conclusion of the central bank’s meeting on Wednesday, where policymakers are anticipated to keep interest rates unchanged.

Clearing the $1.09 barrier

Boris Kovacevic – Global Macro Strategist

The euro continues to push higher, starting the week on a positive footing as risk-on sentiment drives markets. Equity benchmarks across major economies are rising, supported by stronger-than-expected macro data from China and significant fiscal policy developments in Germany that could have long-term implications for European growth. EUR/USD is trading above $1.09 again and could test its year high at $1.0955.

China’s industrial production expanded by 5.9% year-over-year in two months to February, surpassing market expectations of a 5.3% increase. Retail sales rose by 4.0% in the same period, accelerating from 3.7% in December and marking the strongest retail turnover since last October, largely driven by increased consumer spending during the Spring Festival. The resilience of the Chinese economy is a positive signal for global trade, particularly benefiting the Eurozone, given its strong economic ties with China. The risk-on mood, combined with stronger demand signals from Asia, is offering broad support for the euro. At the same time, developments in Germany are adding another layer of support for the common currency.

Lawmakers in Berlin are expected to pass sweeping constitutional changes this week that will remove borrowing restrictions for defense spending in excess of 1% of GDP. This move could have broader implications for the Eurozone economy, as increased government spending on defense and infrastructure could help offset some of the current growth headwinds and support the economic outlook.

Against this backdrop, EUR/USD remains in an upward trend, benefiting from improving risk sentiment and fiscal expansion prospects in Germany. However, further upside will depend on upcoming US economic data, particularly inflation figures and Fed guidance, which could influence expectations around the dollar. Meanwhile, ECB policy expectations remain a key factor, as markets continue to price in rate cuts later this year, but any signs of resilience in the European economy or fiscal expansion could challenge these.

Knocking on the door of $1.30

George Vessey – Lead FX & Macro Strategist

One again, sterling traded within a whisker of the $1.30 handle versus the US dollar, with GBP/USD notching $1.2999 yesterday. The $1.30 handle is a key psychological level, which if overturned, could trigger an acceleration higher as it did in August last year. However, the pound’s already circa 7% rally from its low of 2025 raises the question, is there much more room for it to run higher in the short term?

Monetary policy is a key driver of FX trends and whilst no cuts are expected by the Fed or Bank of England (BoE) this week, the pricing further out favours sterling at this stage. Overnight indexed swaps are pricing in nearly a 75% chance that the BoE will cut in May and just a 25% chance of a cut by the Fed that month, but more easing by the US central bank is expected overall by the end of this year. This is constructive for sterling via an improving UK-US yield spread. But it also leaves it vulnerable to a dovish repricing if sticky services inflation and private sector wage growth start meaningfully easing. For now though, traders are losing confidence that the BoE will be able to meet its inflation target sustainably over its forecast horizon, with breakeven rates across key tenors all well above 3%. Ultimately, the situation is complex for the BoE, and it will likely tread carefully, especially amidst heightened uncertainty due to domestic fiscal policy initiatives and trade policy tensions.

In light of the muddy domestic backdrop then, a break and rally above the $1.30 mark might therefore be more reliant on the fading US exceptionalism narrative, weakening the dollar. Indeed, speculative FX traders are once again betting on the pound appreciating versus the dollar, with CFTC data showing the highest GBP net long position since mid November.

High beta, commodity-linked FX outperforming

Table: 7-day currency trends and trading ranges

Key global risk events

Calendar: March 17-21

All times are in ET

Have a question? [email protected]

*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.

Happy St. Patrick’s Day, folks!

Unfortunately, luck was not on investors’ sides last week, as the markets experienced another bout of brutal selloffs. In fact, the S&P 500 briefly closed in correction territory on Thursday. Meanwhile, the NASDAQ is still in one and has led the overall market lower the past two weeks.

So, in the latest Navellier Market Buzz, I discuss what’s going on in the market and why I’m not bothered by strategists lowering their S&P 500 price targets. I also talk about China’s deflation problems, the U.S. liquefied natural gas (LNG) capacity surge (and the stocks benefitting from it), what to expect from the Federal Open Market Committee’s (FOMC), as well as answer a few investor questions.

Plus, I review NVIDIA Corporation’s (NVDA) performance last week and touch on its AI Developer Conference, which started today. Developers from all over the country are coming together in San Jose, California, to share their insights and ambitions for the future of AI.

Now, the most important event of NVIDIA’s conference will come on Thursday, when CEO Jensen Huang hosts Quantum Day, or “Q Day.” Industry leaders will come together to talk about the future of quantum computing and what they plan to do with it. I held a special summit – The Next Nvidia 50X Call – last week to share what I expect from Q Day. Click here to view the replay.

Click the play button below to watch now!

Updated on March 17th, 2025 by Bob Ciura

Due to the surge of inflation to a 40-year high last year, the Federal Reserve raised interest rates at a rapid pace over the past two years to cool the economy.

But with inflation recently perking up again and the potential impact of tariffs, some economists now expect the Fed to lower interest rates once again, perhaps as soon as September.

Apartment REITs have proved resilient to recessions thanks to the essential nature of their business. They also widely have high dividend yields well above the S&P 500 Index average.

And, apartment REITs would benefit from falling interest rates, which would lower their cost of capital.

You can download our full REIT list, along with important metrics such as dividend yields and market caps, by clicking on the link below:

 

As a result, apartment REITs are interesting candidates for income investors.

This article will discuss the prospects of the top 10 apartment REITs in our Sure Analysis Research Database.

The following 10 apartment REITs are listed by five-year expected annual returns, in order of lowest to highest:

Table of Contents

You can instantly jump to any specific section of the article by using the links below:

Apartment REITs #10: Essex Property Trust (ESS)

• Annual Expected Returns: 4.0%

Essex Property Trust was founded in 1971. The trust invests in West Coast multi-family residential proprieties where it engages in development, redevelopment, management and acquisition of apartment communities and a few other select properties.

Essex has ownership interests in several hundred apartment communities consisting of over 60,000 apartment homes. The trust has about 1,800 employees and produces approximately $1.6 billion in annual revenue.

Essex is concentrated on the West Coast of the U.S., including cities like Seattle and San Francisco.

Source: Investor Presentation

Essex Property Trust reported strong fourth-quarter and full-year 2024 results, exceeding the high end of its original guidance with same-property revenue growth of 3.3% and core FFO growth of 3.8%.

The company attributed its performance to improving demand driven by return-to-office trends, migration patterns, and affordability relative to home ownership.

Click here to download our most recent Sure Analysis report on ESS (preview of page 1 of 3 shown below):

Apartment REITs #9: Camden Property Trust (CPT)

• Annual Expected Returns: 5.3%

Founded in 1993 and headquartered in Houston, Texas, Camden Property Trust is one of the largest publicly traded multifamily real estate companies in the U.S.

The REIT owns, manages and develops multifamily apartment communities. It currently owns 172 properties that contain over 58,000 apartments.

On February 6th, 2025 Camden raised its dividend by 1.9% to a quarterly rate of $1.05, celebrating its 14th consecutive annual hike.

On the same day, the company reported its Q4 and full-year results for the period ending December 31st, 2024. For the quarter, the company reported property revenue of $386.3 million, relatively flat compared to Q4 2023.

While same property revenues rose 0.8%, same-store occupancy fell 20 basis points to 95.3%. Same-property expenses grew by 0.2% during the period, while same-property net operating income (NOI) grew 1.2%.

Click here to download our most recent Sure Analysis report on Camden Property Trust (CPT) (preview of page 1 of 3 shown below):

Apartment REITs #8: Mid-America Apartment Communities (MAA)

• Annual Expected Returns: 6.6%

Mid-America Apartment Communities is a REIT that owns, operates and acquires apartment communities in the Southeast, Southwest and mid-Atlantic regions of the U.S.

It currently has ownership interest in ~102,000 apartment units across 16 states and the District of Columbia.

MAA is focused on the Sunbelt Region of the U.S., which has exhibited superior population growth and economic growth in the long run.

Source: Investor Presentation

In early February, MAA reported (2/5/25) financial results for the fourth quarter of fiscal 2024. Same-store net operating income slipped -0.2% over the prior year’s quarter.

Core funds from operations (FFO) per share dipped -4%, from $2.32 to $2.23, due to higher interest expense, and missed the analysts’ consensus by $0.01. MAA has missed the analysts’ FFO estimates only twice in the last 27 quarters.

MAA has decelerated in the last six quarters due to high supply of new apartments in its markets but the volume of new apartments has begun to lose steam, with fewer new apartments expected next year. MAA provided guidance for core FFO per share of $8.61-$8.93 for 2025.

Click here to download our most recent Sure Analysis report on Mid-America Apartment Communities (MAA) (preview of page 1 of 3 shown below):

Apartment REITs #7: AvalonBay Communities (AVB)

• Annual Expected Returns: 6.9%

AvalonBay Communities is a multifamily REIT that owns a portfolio of several hundred apartment communities and is also an active developer of apartment communities.

The strategy of the REIT involves owning top-tier properties in the major metropolitan areas of New England, New York/New Jersey, Washington D.C., California, and the Pacific Northwest.

Source: Investor Presentation

AvalonBay Communities reported strong fourth-quarter and full-year 2024 results, delivering 3.4% revenue growth and 3.6% core FFO growth, driven by steady demand in its suburban coastal portfolio and operational efficiencies.

The company continued executing on its strategic focus areas, including operational transformation, portfolio optimization, and development expansion.

Its operating model transformation initiatives generated an incremental $39 million of NOI in 2024, with expectations of an additional $9 million in 2025 and a long-term goal of $80 million in annual NOI improvements.

Click here to download our most recent Sure Analysis report on AvalonBay Communities (AVB) (preview of page 1 of 3 shown below):

Apartment REITs #6: Equity LifeStyle Properties (ELS)

• Annual Expected Returns: 7.9%

Equity LifeStyle Properties, Inc is a real estate investment trust which engages in the ownership and operation of lifestyle-oriented properties consisting primarily of manufactured home and recreational vehicle communities.

Equity LifeStyle Properties operates through the following segments: Property Operations; and Home Sales and Rentals Operations.

The Property Operations segment owns and operates land lease properties. The Home Sales and Rentals Operations segment purchases, sells, and leases homes at the properties.

Today, Equity LifeStyle Properties, Inc. owns or has a controlling interest in more than 400 communities and resorts in 33 states and British Columbia, with more than 165,000 sites.

On January 27st, 2025, Equity LifeStyle Properties reported fourth-quarter and full year earnings for Fiscal Year (FY)2024. Net income per common share increased by 16% year-over-year to $1.96, while Funds from Operations (FFO) grew by 9.5% to $3.03 per share.

Normalized FFO saw a 5.9% increase, reaching $2.91 per share. The company also expanded its portfolio by adding 736 new sites and selling 756 new homes.

In response to strong performance, the Board of Directors approved a 7.9% increase in the annual dividend, raising it to $2.06 per share for 2025.

Click here to download our most recent Sure Analysis report on ELS (preview of page 1 of 3 shown below):

Apartment REITs #5: Equity Residential (EQR)

• Annual Expected Returns: 8.0%

Equity Residential is one of the largest U.S. publicly-traded owners and operators of high-quality rental apartment properties with a portfolio primarily located in urban and dense suburban communities.

The properties of the trust are located in affluent areas around Boston, New York, Washington, D.C., Southern California, San Francisco, Seattle, and Denver.

Equity Residential greatly benefits from the favorable characteristics of its target group. Affluent renters are highly educated, well employed and earn high incomes.

As a result, they pay approximately 20% of their incomes on rent and hence they are not burdened by their rent. Thanks to their strong earnings potential, the REIT can easily grow its rent rates year after year.

The Equity Residential Q4 2024 earnings call on February 4, 2025, highlighted the company’s strong operational performance, with solid same-store revenue growth and record-low turnover of 42.5% for the year.

Management emphasized their expectation of revenue acceleration throughout 2025, with stronger performance in the second half, driven by improving job growth, favorable supply-demand dynamics, and continued strength in resident retention.

Coastal markets remain a key focus, with supply in these regions expected to decline in 2026, particularly in urban sub-markets.

Click here to download our most recent Sure Analysis report on Equity Residential (EQR) (preview of page 1 of 3 shown below):

Apartment REITs #4: UMH Properties (UMH)

• Annual Expected Returns: 8.6%

UMH Properties is a REIT that is one of the largest manufactured housing landlords in the U.S. It was founded in 1968 and currently owns tens of thousands of developed sites and 135 communities located across the midwestern and northeastern U.S.

As manufactured homes are cheaper than conventional homes, UMH Properties has proved resilient to recessions.

Source: Investor Presentation

On February 25, 2025, UMH Properties, Inc. reported its financial results for the fourth quarter of 2024. The company achieved revenue of $61.87 million, surpassing the forecasted $58.47 million, indicating strong operational performance.

Normalized funds from operations (FFO) per share increased by 4% year-over-year to $0.24 for the quarter and 8% to $0.93 for the full year, reflecting robust demand in the manufactured housing sector.

Click here to download our most recent Sure Analysis report on UMH Properties (UMH) (preview of page 1 of 3 shown below):

Apartment REITs #3: American Homes 4 Rent (AMH)

• Annual Expected Returns: 9.8%

Based in Maryland, American Homes 4 Rent is an internally managed REIT that focuses on acquiring, developing, renovating, operating and leasing single-family homes as rental properties. AMH was formed in 2013 and has a market capitalization of $14 billion.

The REIT holds nearly 58,000 single-family properties in more than 30 sub-markets of metropolitan statistical areas in 21 states.

On February 12th, 2025, AMH announced it was increasing its quarterly dividend 15.4% to $0.30 per share.

On February 20th, 2025, AMH announced fourth quarter results for the period ending December 31st, 2024. For the quarter, revenue grew 6.8% to $436.6 million, though this was $5.4 million less than expected.

FFO of $0.45 compared favorably to FFO of $0.43 in the previous year and was in-line with estimates. For the year, revenue grew 6.5% to $1.73 billion while FFO of $1.77 per share compared to $1.66 per share in 2023.

Click here to download our most recent Sure Analysis report on American Homes 4 Rent (AMH) (preview of page 1 of 3 shown below):

Apartment REITs #2: UDR, Inc. (UDR)

• Annual Expected Returns: 10.0%

UDR, also known as United Dominion Realty Trust, is a luxury apartment REIT. The trust owns, operates, acquires, renovates, and develops multifamily apartment communities in high barrier-to-entry markets in the U.S.

A high barrier-to-entry market consists of limited land for new construction, complicated entitlement processes, low single-family home affordability and strong employment growth potential.

The majority of UDR’s real estate property value is established in Washington D.C., New York City, Orange County, California, and San Francisco.

Source: Investor Presentation

On February 5th, 2025, UDR announced its 2025 dividend will be $1.72 per share, which represents a 1.2% increase and marks the company’s 14th consecutive annual dividend increase.

UDR reported fourth quarter 2024 results on February 5th, 2025. The company’s adjusted funds from operations was flat year-over-year at $0.54 per share.

The quarterly AFFO payout ratio of 79% is relatively safe for a REIT that must pay out the majority of its earnings to shareholders. Physical occupancy of the real estate portfolio was flat compared to the prior year period at 96.8%.

The trust initiated its guidance for 2025 and now forecasts AFFO per share of $2.45 to $2.55.

Click here to download our most recent Sure Analysis report on UDR (preview of page 1 of 3 shown below):

Apartment REITs #1: American Assets Trust (AAT)

• Annual Expected Returns: 16.0%

American Assets Trust is a REIT that was formed in 2011 as a successor of American Assets, a privately held company founded in 1967.

AAT has great experience in acquiring, improving and developing office, retail and residential properties throughout the U.S., primarily in Southern California, Northern California, Oregon, Washington and Hawaii.

Its office portfolio and its retail portfolio comprise of approximately 4.0 million and 3.1 million square feet, respectively. AAT also owns more than 2,000 multifamily units.

Source: Investor Presentation

In early February, AAT reported (2/4/25) financial results for the fourth quarter of fiscal 2024. Adjusted same-store net operating income grew 3% but funds from operations (FFO) per share dipped -4% over the prior year’s quarter due to higher interest expense.

Due to this headwind, AAT provided weak guidance for 2025, expecting FFO per share of $1.87 to $2.01.

Click here to download our most recent Sure Analysis report on American Assets Trust (AAT) (preview of page 1 of 3 shown below):

Final Thoughts

Many apartment REITs pass under the radar of the majority of investors due to their mundane business model.

However, some of these REITs have offered exceptionally high returns to their shareholders. In addition, apartment REITs have proved resilient to recessions, as the demand for housing remains strong even during rough economic periods.

The above 10 apartment REITs are interesting candidates for the portfolios of income-oriented investors, especially given the increasing risk of an upcoming recession.

If you are interested in finding high-quality dividend growth stocks and/or other high-yield securities and income securities, the following Sure Dividend resources will be useful:

High-Yield Individual Security Research

Other Sure Dividend Resources

Hello, Reader.

If we had to sum up the last several weeks into one unifying theme, I think we could all agree that “unpredictable” does the trick.

But as we’ve seen with the recent selloffs, unpredictability is one major reason why the stock market has been struggling to stay on track.

It doesn’t like uncertainty. Never has, never will… especially not when that uncertainty is self-inflicted.

The good news is that even a small dose of consistency from the White House would go a long way toward helping the stock market stabilize. The bad news is that no one can predict when, or even if, that might occur.

As investors, we can only guess what might happen next, then do our best to set a course that is as immune as possible to the rapid-fire edicts and policy revisions issuing forth from the White House.

During the months leading up to Trump’s inauguration, I made a few guesses about how stock market trends might unfold in 2025… and I wasn’t entirely wrong.

For instance, I predicted that “lowly valued… foreign stock markets [would] outperform the S&P 500 this year… the Japanese stock market, for example, could deliver a surprisingly strong performance.”

When I wrote about the opportunity coming from the Japanese stocks here at Smart Money back in January, I mentioned that the resurgence of Japan’s Nikkei 225 index over the last couple of years could be signaling a new era of superior economic growth. Already, the Japanese economy has regained a solid financial footing.

Japanese businesses are also opening their wallets and spending. Capital investment rose 8.1% last year and is trending sharply higher. Expressed as a percentage of GDP, capital investment has climbed to 26%, which is the highest level in 16 years.

Japanese stocks are beginning to reflect these positive trends. That is why, at the time, I had recommended a play on Japanese stocks to my Fry’s Investment Report subscribers.

And since issuing my forecast, that recommendation has advanced 6.5%, compared to the S&P 500’s 4.0% loss over the same time frame. I expect this outperformance to continue.

This trade offers a compelling way to diversify from U.S. stocks. Assuming the Japanese economy continues its current growth trajectory, this play could produce solid double-digit gains for several years – even if the U.S. stock market falters somewhat.

We will continue to keep an eye on ever-changing current events and White House pronouncements. But we will keep a closer eye on the factors we can control, like buying solid stocks with superior investment prospects, no matter if they be tech stocks or non-tech stocks… and no matter if they trade here in the U.S. or in a foreign market.

These are the types of companies that I have, and will continue to, focus on at Fry’s Investment Report. To learn more about becoming a member today, click here.

Now, let’s look at what we covered here at Smart Money this past week…

Smart Money Roundup

How to Escape the ‘Tyranny of the Immediate’ in Investing

The market has experienced significant declines, with major indexes falling to multi-month lows and numerous stocks entering bear market territory. While these conditions are challenging, history shows that corrections inevitably create future investment opportunities. In this issue, I caution against the “Tyranny of the Immediate” mindset that develops during bull markets and share how one Wall Street legend isn’t falling for it, either… and where he’s looking instead.

The Selloff Continues – Here’s Why and What to Do Now

In Thursday’s Smart Money, Tom Yeung discusses last week’s severe market turmoil due to selloffs triggered by President Donald Trump’s tariffs on Canada, Mexico, and China. But America’s issues go beyond tariff news. Read on as Tom explains the unsteady market and reveals why we’re still bullish on certain companies… and where you can find them.

Quantum Stocks Just Had Their Breakout Moment – This Is Only the Beginning

Last week, the company D-Wave Quantum achieved quantum supremacy by completing a complex scientific simulation in 20 minutes that would take a traditional supercomputer nearly a million years. As a result, D-Wave’s shares popped 11% on the news. As this technology is rapidly advancing from theoretical to practical applications, major tech companies like Nvidia Corp. (NVDA) are investing heavily in quantum computing. Continue reading for more on why Louis Navellier wants you to get in on a specific investment opportunity before the market fully catches on.

Why Awful Consumer Sentiment Data Makes Us Excited About Stocks

Consumer sentiment has dropped sharply, hitting its lowest level since November 2022. Despite the pessimism, economic fundamentals remain solid: positive GDP growth, steady customer spending, low unemployment, declining inflation, strong wage growth, and healthy corporate profits. This disconnect has Luke Lango suggesting sentiment may rebound soon, potentially lifting stocks.

Looking Ahead

With all the recent market volatility, everyone may be wondering, “Is the AI boom over?”

The short answer: no.

In fact, I’ve been keeping my eye on new AI technology so powerful that it could secure America’s supremacy in the 21st century… and that’s no exaggeration.

This technology comes from Elon Musk’s artificial intelligence company, xAI. It’s a supercomputer that Musk called “the most powerful AI training system in the world.” And I’ve found company that has partnered with Musk in this new project.

I’ll share more about this project in your next Smart Money. Stay tuned.

Regards,

Eric Fry

Written by Steven Dooley, Head of Market Insights, and Shier Lee Lim, Lead FX and Macro Strategist

Kiwi leads overnight gains

A second day of strong gains in US sharemarkets boosted global sentiment and helped the AUD/USD near three-month highs and the NZD/USD surge to the highest level since mid-December.

The New Zealand dollar led markets with the NZD/USD up a massive 1.2% as it broke above the recent highs at 0.5775 that have capped gains. The NZD/AUD hit three-month highs.

The AUD/USD was also higher, up 0.9%, but the pair remains within the recent trading range with the Aussie still stuck below key resistance at 0.6400.

In Asia, the US dollar was mostly lower.

The USD/SGD fell 0.3% with the pair back at four-month lows.

The USD/CNH dropped 0.2% with this market also back at four-month lows.

JPY weaker as BoJ looms

Across Asia, the upcoming focus is the announcement of the Bank of Japan’s monetary policy meeting, due Wednesday at 2.00pm AEDT.

We anticipate that the policy rate will remain unchanged. It’s probable that communication will take precedence over policy choices. 

We’ll be concentrating on BOJ Governor Kazuo Ueda’s evaluation of the following during the press conference: (1) the rate and scope of wage increases; (2) the slowness of consumer spending; (3) substantial increases in food prices that defy inflation due to the so-called first and second forces; and (4) the unpredictability of US economic policy.

While the USD/JPY was higher overnight, the pair remains down for the second straight month, weighed down by narrowing US-Japan yield spreads and rising safe-haven demand for the JPY.

The Japanese yen fell to one-month lows versus the Australian and Singapore dollars.

GBP remains mostly stronger ahead of BoE 

Sticking with central banks, the US Federal Reserve is due Thursday morning while the Bank of England decision is due Thursday at 11.00pm AEDT.

We do not anticipate any policy changes from the Bank of England this month, with the BoE most likely to cut in the meetings that accompany the Monetary Policy Report releases, with a target terminal rate of 3.50%,

The GBP/USD was back at four-month highs overnight. The GBP has recently weakened versus the Aussie and the kiwi – after reaching around five-year highs – but the GBP/SGD remains near one-year highs.

Aussie, kiwi at three-month highs

Table: seven-day rolling currency trends and trading ranges  

Key global risk events

Calendar: 17 – 22 March  

All times AEDT

Have a question? [email protected]

*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.

​One of the most discussed cryptocurrencies on the market, dogecoin (DOGE) transforms little deposits into early adopters’ life-changing fortunes. Not everyone entered at the proper moment, though, and many investors now are looking for the next great prospect. While meme coins like DOGE have depended on community enthusiasm and speculation, utility-driven enterprises with real-world use cases will shape high-growth crypto investments. One such initiative is Rexas Finance (RXS), which gives investors a chance to get more profits quickly, surpassing the increases in DOGE. With a strong basis in real-world asset (RWA) tokenization, a CertiK-audited security architecture, a successful presale, and a $1 million giveaway, RXS offers a perfect chance for investors who missed DOGE’s early surge. A $640 investment in Rexas Finance could yield enormous gains within the next seven months, with the RXS presale almost finished and the token poised to launch at a higher price.

Rexas Finance (RXS): An explosive potential real-world utility token

Rexas Finance is a blockchain-based platform revolutionizing asset management by tokenizing, unlike Dogecoin, which was first invented as a joke and subsequently acquired value via community excitement. Real estate, gold, art, and intellectual property are among the real-world assets users may possess or tokenize on the platform, hence increasing the liquidity and accessibility of asset investing. The success of the RXS presale is evidence of the project’s market faith. Selling around 453 million tokens, Rexas Finance has now raised $46.79 million out of its $56 million goal. Early investors are already set for gains even before RXS goes listed on main exchanges, with the presale price set at $0.20 and a launch price of $0.25. With blockchain-based asset tokenization fast embraced, RXS is not just another cryptocurrency but also a breakthrough platform bridging the distance between conventional finance and decentralized investment.

Rexas Finance Beats Dogecoin

One of the main differences between Dogecoin and Rexas Finance is the project’s underlying value. Social media trends, celebrity sponsorships, and speculative trading have always propelled Dogecoin more than practical application. Although this paradigm worked in the past, the crypto market is changing as investors increasingly search for tokens with actual use. By allowing the tokenization and trading of actual assets, Rexas Finance brings liquidity to otherwise illiquid markets and presents a concrete, long-term use case. This practical use guarantees RXS’s intrinsic worth regardless of social media buzz or market trends. Another main component that distinguishes RXS is security. Many cryptocurrencies, like DOGE, are prone to attacks and fraud since many run without strict security systems. Rexas Finance has been proactive, completing an extensive audit under one of the most reputable blockchain security companies, CertiK. The CertiK audit guarantees that RXS is constructed on a trustworthy and safe architecture, lowering the risks of smart contract weaknesses.

Seven-Month Growth Potential of RXS

The following seven months will be vital for Rexas Finance as the project shifts from presale to full launch. Because of its excellent fundamentals and forthcoming exchange listings, RXS is now positioned for fast expansion, unlike Dogecoin, which needed years to peak. Early presale purchasers are assured an instantaneous price boost, with RXS expected to release at $0.25 per token. Demand for RXS is predicted to explode as more investors see real-world asset tokenization possibilities, increasing the price within the next few months. Among the most appealing investment prospects in the crypto industry, RXS is one because of its fast development potential.

How might one enter the Rexas Finance Presale?

Though time is running out, the RXS presale is still accessible for early investors. Participating in the presale is easy and lets investors get tokens at a reduced price before they reach the main markets. Connecting a Web3 wallet like MetaMask or Trust Wallet lets investors buy RXS straight from the official Rexas Finance website. ETH or USDT is one of the payment choices, giving diversity to several crypto investors. This is one of the last chances to get RXS at the presale price before it goes live since there are just a few tokens left before launch.

The one-million-dollar giveaway and implications for investors

Rexas Finance is holding a huge $1 million contest. Twenty winners will each receive $50,000 worth of RXS tokens, drawing in early adopters. Completing easy chores, referring friends, and interacting with the Rexas community help participants increase their chances of winning. This offer honors early supporters and raises awareness of and acceptance of the upcoming project before its formal start. The offer to investors is another motivation to participate early on. Participants gain from being part of a fast-expanding ecosystem with significant community involvement and a clear road to long-term value, even without winning.

Why RXS Might be the Leading Crypto Investment Made in 2025?

When all these elements come together, Rexas Finance stands as among the top investing prospects for 2025. Real-world asset tokenization, a successful presale, a CertiK-audited security architecture, forthcoming exchange listings, and a huge giveaway campaign make RXS a highly prospective token with great upside. For those who missed the early surge of Dogecoin, RXS offers an even better chance to make life-altering profits. Rexas Finance provides a solid basis in blockchain-based asset management, unlike meme coins that depend on hype and offer real-world use, guaranteeing long-term value.

Conclusion

If the token approaches complete market adoption, a modest $640 investment in RXS today could pay off handsomely in the next seven months. Given that the presale is ending soon and upcoming exchange listings, investors who get in now will be in the best position to profit from RXS’s explosive expansion. Although Dogecoin generated ripples in the crypto space, a token with real-world use and security—Rexas Finance is that token—will be the next major winner. Those seeking a high-reward possibility with solid foundations should not miss this chance to purchase RXS at its lowest price before it becomes popular.

For more information about Rexas Finance (RXS) visit the links below:

Website: https://rexas.com

Win $1 Million Giveaway: https://bit.ly/Rexas1M

Whitepaper: https://rexas.com/rexas-whitepaper.pdf

Twitter/X: https://x.com/rexasfinance

Telegram: https://t.me/rexasfinance ​

Disclaimer: The views and opinions presented in this article do not necessarily reflect the views of CoinCheckup. The content of this article should not be considered as investment advice. Always do your own research before deciding to buy, sell or transfer any crypto assets. Past returns do not always guarantee future profits.

Updated on March 17th, 2025 by Bob Ciura

Spreadsheet data updated daily

Master Limited Partnerships – or MLPs, for short – are some of the most misunderstood investment vehicles in the public markets. And that’s a shame, because the typical MLP offers:

1. Tax-advantaged income
2. High yields well in excess of market averages
3. The bulk of corporate cash flows returned to shareholders through distributions

An example of a ‘normal’ MLP is an organization involved in the midstream energy industry. Midstream energy companies are in the business of transporting oil, primarily though pipelines. Pipeline companies make up the vast majority of MLPs.

Since MLPs widely offer high yields, they are naturally appealing for income investors. With this in mind, we created a full downloadable list of nearly 100 MLPs in our coverage universe.

You can download the Excel spreadsheet (along with relevant financial metrics like dividend yield and payout ratios) by clicking on the link below:

 

This comprehensive article covers MLPs in depth, including the history of MLPs, unique tax consequences and risk factors of MLPs, as well as our 7 top-ranked MLPs today.

The table of contents below allows for easy navigation of the article:

Table of Contents

The History of Master Limited Partnerships

MLPs were created in 1981 to allow certain business partnerships to issue publicly traded ownership interests.

The first MLP was Apache Oil Company, which was quickly followed by other energy MLPs, and then real estate MLPs.

The MLP space expanded rapidly until a great many companies from diverse industries operated as MLPs – including the Boston Celtics basketball team.

One important trend over the years, is that energy MLPs have grown from being roughly one-third of the total MLP universe to containing the vast majority of these securities.

Moreover, the energy MLP universe has evolved to be focused on midstream energy operations. Midstream partnerships have grown to be roughly half of the total number of energy MLPs.

MLP Tax Consequences

Master limited partnerships are tax-advantaged investment vehicles. They are taxed differently than corporations. MLPs are pass-through entities. They are not taxed at the entity level.

Instead, all money distributed from the MLP to unit holders is taxed at the individual level.

Distributions are ‘passed through’ because MLP investors are actually limited partners in the MLP, not shareholders. Because of this, MLP investors are called unit holders, not shareholders.

And, the money MLPs pay out to unit holders is called a distribution (not a dividend).

The money passed through from the MLP to unit holders is classified as either:

• Return of Capital
• Ordinary Income

MLPs tend to have lots of depreciation and other non-cash charges. This means they often have income that is far lower than the amount of cash they can actually distribute. The cash distributed less the MLPs income is a return of capital.

A return of capital is not technically income, from an accounting and tax perspective. Instead, it is considered as the MLP actually returning a portion of its assets to unit holders.

Now here’s the interesting part… Returns of capital reduce your cost basis. That means taxes for returns of capital are only due when you sell your MLP units. Returns of capital are tax-deferred.

Note: Return of capital taxes are also due in the event that your cost basis is less than $0. This only happens for very long-term holding, typically around 10 years or more.

Each individual MLP is different, but on average an MLPs distribution is usually around 80% to 90% a return of capital, and 10% to 20% ordinary income.

This works out very well from a tax perspective. The images below compare what happens when a corporation and an MLP each have the same amount of cash to send to investors.

Note 1: Taxes are never simple. Some reasonable assumptions had to be made to simplify the table above. These are listed below:

• Corporate federal income tax rate of 21%
• Corporate state income tax rate of 5%
• Qualified dividend tax rate of 20%
• Distributable cash is 80% a return of capital, 20% ordinary income
• Personal federal tax rate of 22% less 20% for passive entity tax break
  (19.6% total instead of 22%)
• Personal state tax rate of 5% less 20% for passive entity tax break
  (4% total instead of 5%)
• Long-term capital gains tax rate of 20% less 20% for passive entity tax break
  (16% total instead of 20%)

Note 2: The 20% passive income entity tax break will expire in 2025.

Note 3: In the MLP example, if the maximum personal tax rate of 37% is used, the distribution after all taxes is $8.05.

Note 4: In the MLP example, the accrued cost basis reduction tax is due when the MLP is sold, not annually come tax time.

As the tables above show, MLPs are far more efficient vehicles for returning cash to shareholders relative to corporations. Additionally, in the example above $9.57 out of $10.00 distribution would be kept by the MLP investor until they sold because the bulk of taxes are from returns of capital and not due until the MLP is sold.

Return of capital and other issues discussed above do not matter when MLPs are held in a retirement account.

There is a different issue with holding MLPs in a retirement account, however. This includes 401(k), IRA, and Roth IRA accounts, among others.

When retirement plans conduct or invest in a business activity, they must file separate tax forms to report Unrelated Business Income (UBI) and may owe Unrelated Business Taxable Income (UBTI). UBTI tax brackets go up to 37% (the top personal rate).

MLPs issue K-1 forms for tax reporting. K-1s report business income, expense, and loss to owners. Therefore, MLPs held in retirement accounts may still qualify for taxes.

If UBI for all holdings in your retirement account is over $1,000, you must have your retirement account provider (typically, your brokerage) file Form 990-T.

You will want to file form 990-T as well if you have a UBI loss to get a loss carryforward for subsequent tax years. Failure to file form 990-T and pay UBIT can lead to severe penalties.

Fortunately, UBIs are often negative. It is a fairly rare occurrence to owe taxes on UBI.

The subject of MLP taxation can be complicated and confusing. Hiring a tax professional to aid in preparing taxes is a viable option for dealing with the complexity.

The bottom line is this: MLPs are tax-advantaged vehicles that are suited for investors looking for current income. It is fine to hold them in either taxable or non-taxable (retirement) accounts.

Since retirement accounts are already tax-deferred, holding MLPs in taxable accounts allows you to ‘get credit’ for the full effects of their unique structure.

4 Advantages & 6 Disadvantages of Investing in MLPs

MLPs are a unique asset class. As a result, there are several advantages and disadvantages to investing in MLPs. Many of these advantages and disadvantages are unique specifically to MLPs.

Advantages of MLPs

Advantage #1: Lower taxes

MLPs are tax-advantaged securities, as discussed in the “Tax Consequences” section above. Depending on your individual tax bracket, MLPs are able to generate around 40% more after-tax income for every pre-tax dollar they decide to distribute, versus Corporations.

Advantage #2: Tax-deferred income through returns of capital

In addition to lower taxes in general, 80% to 90% of the typical MLPs distributions are classified as returns of capital. Taxes are not 0wed (unless cost basis falls below 0) on return of capital distributions until the MLP is sold.

This creates the favorable situation of tax-deferred income.

Tax-deferred income is especially beneficial for retirees as return on capital taxes may not need to be paid throughout retirement.

Advantage #3: Diversification from other asset classes

Investing in MLPs provides added diversification in a balanced portfolio. Diversification can be measured by the correlation in return series between asset classes.

MLPs are excellent diversifiers, having either a near zero or negative correlation to corporate bonds, government bonds, and gold.

Additionally, they have a correlation coefficient of less than 0.5 to both REITs and the S&P 500. This makes MLPs an excellent addition to a diversified portfolio.

Advantage #4: Typically very high yields

MLPs tend to have high yields far in excess of the broader market. As of this writing, the S&P 500 yields ~2.1%, while the Alerian MLP ETF (AMLP) yields over 25%. Many individual MLPs have yields above 10%.

Disadvantages of MLPs

Disadvantage #1: Complicated tax situation

MLPs can create a headache come tax season. MLPs issue K-1’s and are generally more time-consuming and complicated to correctly calculate taxes than ‘normal’ stocks.

Disadvantage #2: Potential additional paperwork if held in a retirement account

In addition, MLPs create extra paperwork and complications when invested through a retirement account because they potentially create unrelated business income (UBI). See the “Tax Consequences” section above for more on this.

Disadvantage #3: Little diversification within the MLP asset class

While MLPs provide significant diversification versus other asset classes, there is little diversification within the MLP structure.

The vast majority of publicly traded MLPs are oil and gas pipeline businesses. There are some exceptions, but in general MLP investors are investing in energy pipelines and not much else.

Because of this, it would be unwise to allocate all or a majority of one’s portfolio to this asset class.

Disadvantage #4: Incentive Distribution Rights (IDRs)

MLP investors are limited partners in the partnership. The MLP form also has a general partner.

The general partner is usually the management and ownership group that controls the MLP, even if they own a very small percentage of the actual MLP.

Incentive Distribution Rights, or IDRs, are used to ‘incentivize’ the general partner to grow the MLP.

IDRs typically allocate greater percentages of cash flows to go to the general partner (and not to the limited partners) as the MLP grows its cash flows.

This reduces the MLPs ability to grow its distributions, putting a handicap on distribution increases.

It should be noted that not all MLPs have IDRs, but the majority do.

Disadvantage #5: Elevated risk of distribution cuts due to high payout ratios

One of the big advantages of investing in MLPs is their high yields. Unfortunately, high yields very often come with high payout ratios.

Most MLPs distribute nearly all of the cash flows they make to unit holders. In general, this is a positive.

However, it creates very little room for error.

The pipeline business is generally stable, but if cash flows decline unexpectedly, there is almost no margin of safety at many MLPs. Even a short-term disturbance in business results can necessitate a reduction in the distribution.

Disadvantage #6: Growth Through Debt & Share Issuances

Since MLPs typically distribute virtually all of their cash flows as distributions, there is very little money left over to actually grow the partnership.

And most MLPs strive to grow both the partnership, and distributions, over time. To do this, the MLP’s management must tap capital markets by either issuing new units or taking on additional debt.

When new units are issued, existing unit holders are diluted; their percentage of ownership in the MLP is reduced.

When new debt is issued, more cash flows must be used to cover interest payments instead of going into the pockets of limited partners through distributions.

If an MLPs management team starts projects with lower returns than the cost of their debt or equity capital, it destroys unit holder value. This is a real risk to consider when investing in MLPs.

The 7 Best MLPs Today

The 7 best MLPs are ranked and analyzed below using expected total returns from the Sure Analysis Research Database. Expected total returns consist of 3 elements:

• Return from change in valuation multiple
• Return from distribution yield
• Return from growth on a per-unit basis

Investors should note that the top MLPs list was not screened on a qualitative assessment of a company’s dividend risk. The focus is expected annual returns over the next five years.

That said, MLPs with current distribution yields below 2% were not considered. This screen makes the list more attractive to income investors.

Continue reading for detailed analysis on each of our top MLPs, ranked according to expected 5-year annual returns.

MLP #7: Enterprise Products Partners LP (EPD)

• 5-year expected annual returns: 10.6%

Enterprise Products Partners was founded in 1968. It is structured as a Master Limited Partnership, or MLP, and operates as an oil and gas storage and transportation company.

Enterprise Products has a large asset base which consists of nearly 50,000 miles of natural gas, natural gas liquids, crude oil, and refined products pipelines.

It also has storage capacity of more than 250 million barrels. These assets collect fees based on volumes of materials transported and stored.

Source: Investor Presentation

Enterprise Products Partners reported strong fourth-quarter 2024 earnings, delivering $1.6 billion in net income, or $0.74 per common unit, representing a 3% increase over the prior year.

Adjusted cash flow from operations rose 4% to $2.3 billion, with the company declaring a quarterly distribution of $0.535 per unit, a 4% year-over-year increase.

Enterprise also continued its capital return strategy, repurchasing 2.1 million common units during the quarter and 7.6 million units for the full year, bringing total buybacks under its program to $1.1 billion.

For the full year, the company posted $9.9 billion in EBITDA, moving 12.9 million barrels of oil equivalent per day.

Click here to download our most recent Sure Analysis report on EPD (preview of page 1 of 3 shown below):

MLP #6: Hess Midstream LP (HESM)

• 5-year expected annual returns: 11.1%

Hess Midstream LP owns and operates midstream assets primarily located in the Bakken and Three Forks Shale plays in North Dakota. It provides oil, gas and water midstream services to Hess and third-party customers in the U.S.

Hess Midstream has long-term commercial contracts, which extend through 2033. Its contracts are 100% fee-based and minimize the exposure of the company to commodity prices.

Source: Investor Presentation

In late January, Hess Midstream reported (1/29/25) financial results for the fourth quarter of fiscal 2024. Throughput volumes grew 15% for gas processing and gas gathering over the prior year’s quarter thanks to higher production and higher gas capture.

As a result, revenue grew 11% and earnings-per-share grew 24%, from $0.55 to $0.68.

Management expects 10% growth of throughput volumes, 11% growth of adjusted EBITDA and at least 5% annual growth of distributions until 2027.

It also expects to reduce leverage ratio (Net Debt to EBITDA) below 2.5x by the end of 2026.

Click here to download our most recent Sure Analysis report on HESM (preview of page 1 of 3 shown below):

MLP #5: AllianceBernstein Holding LP (AB)

• 5-year expected annual returns: 12.3%

AllianceBernstein L.P. is an asset manager with an emphasis on fixed income investments, but offers diversified investment solutions for institutional investors, private wealth clients, and retail investors.

The company traces its roots back to Sanford C. Bernstein & Company, founded in 1967, and to Alliance Capital, founded in 1971.

AllianceBernstein (AB) delivered a strong performance in Q4, surpassing $800 billion in assets under management (AUM). Fixed income inflows reached $6 billion, driven by robust retail demand, particularly in taxable and tax-exempt strategies.

American Income led taxable fixed income demand, while tax-exempt strategies saw over $3 billion in net inflows, supported by retail municipal separately managed accounts and Bernstein Private Wealth clients.

Private markets AUM grew 11% year-over-year to $68 billion, bolstered by net fundings into alternatives, including CLOs, real estate, and renewable energy.

Click here to download our most recent Sure Analysis report on AB (preview of page 1 of 3 shown below):

MLP #4: Plains All American Pipeline LP (PAA)

• 5-year expected annual returns: 14.0%

Plains All American Pipeline, L.P. is a midstream energy infrastructure provider. The company owns an extensive network of pipeline transportation, terminaling, storage, and gathering assets in key crude oil and natural gas liquids-producing basins at major market hubs in the United States and Canada.

Source: Investor Presentation

On February 7th, 2025, Plains All American posted its Q4 and full-year results for the period ending December 31st, 2024.

For the quarter, revenues came in at $12.4 billion, down 2.3% compared to last year. Adjusted EBITDA from crude oil increased by 1% year-over-year, primarily due to higher tariff volumes on its pipelines, tariff escalations and contributions from acquisitions.

Adjusted EBITDA from NGL declined 9% year-over-year results primarily due to lower weighted average frac spreads in the fourth quarter of 2024.

Click here to download our most recent Sure Analysis report on PAA (preview of page 1 of 3 shown below):

MLP #3: Delek Logistics Partners LP (DLK)

• 5-year expected annual returns: 15.2%

Delek Logistics Partners, LP is a publicly traded master limited partnership (MLP) headquartered in Brentwood, Tennessee.

Established in 2012 by Delek US Holdings, Inc. (NYSE: DK), Delek Logistics owns and operates a network of midstream energy infrastructure assets.

These assets include approximately 850 miles of crude oil and refined product transportation pipelines and a 700-mile crude oil gathering system, primarily located in the southeastern United States and west Texas.

The company’s operations are integral to Delek US’s refining activities, particularly supporting refineries in Tyler, Texas, and El Dorado, Arkansas.

Delek Logistics provides services such as gathering, transporting, and storing crude oil, as well as marketing, distributing, and storing refined products for both Delek US and third-party customers.

On February 25, 2025, Delek Logistics Partners (DKL) reported its financial results for the fourth quarter of 2024. The company achieved an adjusted EBITDA of approximately $107.2 million, an increase from $100.9 million in the same period of the previous year.

Distributable cash flow was $69.5 million, with a coverage ratio of approximately 1.2 times. The Gathering and Processing segment saw an adjusted EBITDA of $66 million, up from $53.3 million in Q4 2023, primarily due to higher throughput from Permian Basin assets and contributions from the H2O Midstream acquisition.

Click here to download our most recent Sure Analysis report on DKL (preview of page 1 of 3 shown below):

MLP #2: Brookfield Energy Partners LP (BEP)

• 5-year expected annual returns: 16.3%

Brookfield Renewable Partners L.P. operates one of the world’s largest portfolios of publicly traded renewable power
assets. Its portfolio consists of about 33,000 megawatts of capacity in North America, South America, Europe, and Asia.

Brookfield Renewable Partners is one of four publicly traded listed partnerships that are operated by Brookfield Asset Management (BAM). The others are Brookfield Infrastructure Partners (BIP) and Brookfield Business Partners (BBU).

Source: Investor Presentation

In late January, BEP reported (1/31/25) results for the fourth quarter of 2024. Its funds from operations (FFO) per unit grew 21%, from $0.38 to $0.46, thanks to development and acquisition of assets and strong pricing.

BEP is resilient to high inflation, as about 70% of its contracts are indexed to inflation and most of its costs are fixed.

The company invested an almost record $1.8 billion in all major decarbonization assets in 2024 and it is one of the largest publicly-traded renewable power platforms.

Click here to download our most recent Sure Analysis report on Brookfield Renewable Partners (preview of page 1 of 3 shown below):

MLP #1: Brookfield Infrastructure Partners LP (BIP)

• 5-year expected annual returns: 17.8%

Brookfield Infrastructure Partners L.P. is one of the largest global owners and operators of infrastructure networks, which includes operations in sectors such as energy, water, freight, passengers, and data.

Brookfield Infrastructure Partners is one of four publicly-traded listed partnerships that is operated by Brookfield Asset Management (BAM).

BIP has delivered 8% compound annual distribution growth over the past 10 years.

Source: Investor Presentation

BIP reported resilient results for Q4 2024 on 01/30/25. The diversified utility reported funds from operations of $646 million, up 3.9% year over year. FFO per unit was $0.82, up 3.8%.

For the full year, FFO per unit was $3.12, up 5.8% from the previous year. Normalized for the impact of foreign exchange, the FFOPU growth would have been 10%, which better reflects the business’s operational strength.

For the year, it achieved its target of $2 billion capital recycling proceeds. It also deployed +$1.1 billion across its backlog of organic growth projects and three tuck-in acquisitions, which should help contribute to growth. It also added ~$1.8 billion of new projects to its capital backlog.

Click here to download our most recent Sure Analysis report on Brookfield Infrastructure Partners (preview of page 1 of 3 shown below):

MLP ETFs, ETNs, & Mutual Funds

There are 3 primary ways to invest in MLPs:

1. By investing in units of individual publicly traded MLPs
2. By investing in a MLP ETF or mutual fund
3. By investing in a MLP ETN

Note: ETN stands for ‘exchange traded note’

The difference between investing directly in a company (normal stock investing) versus investing in a mutual fund or ETF is very clear. It is simply investing in one security versus a group of securities.

ETNs are different. Unlike mutual funds or ETFs, ETNs don’t actually own any underlying shares or units of real businesses.

Instead, ETNs are financial instruments backed by the financial institution (typically a large bank) that issued them. They perfectly track the value of an index. The disadvantage to ETNs is that they expose investors to the possibility of a total loss if the backing institution were to go bankrupt.

The advantage to investing in a MLP ETN is that distribution income is tracked, but paid via a 1099. This eliminates the tax disadvantages of MLPs (no K-1s, UBTI, etc.). This unique feature may appeal to investors who don’t want to hassle with a more complicated tax situation. The J.P. Morgan Alerian MLP ETN makes a good choice in this case.

Purchasing individual securities is preferable for many, as it allows investors to concentrate on their best ideas. But ETFs have their place as well, especially for investors looking for diversification benefits.

Final Thoughts

Master Limited Partnerships are a misunderstood asset class. They offer diversification, tax-advantaged and tax-deferred income, high yields, and have historically generated excellent total returns.

You can download your free copy of all MLPs by clicking on the link below:

 

The asset class is likely under-appreciated because of its more complicated tax status.

MLPs are generally attractive for income investors, due to their high yields.

As always, investors need to conduct their own due diligence regarding the unique tax effects and risk factors before purchasing MLPs.

The MLPs on this list could be a good place to find long-term buying opportunities among the beaten-down MLPs.

Additionally, MLPs are not the only way to find high levels of income. The following lists contain many more stocks that regularly pay rising dividends.

• The Dividend Aristocrats List: 69 stocks in the S&P 500 Index with 25+ years of consecutive dividend increases.
• The Dividend Kings List is even more exclusive than the Dividend Aristocrats. It is comprised of 54 stocks with 50+ years of consecutive dividend increases.
• The High Dividend Stocks List: stocks that appeal to investors interested in the highest yields of 5% or more.
• The Monthly Dividend Stocks List: stocks that pay dividends every month, for 12 dividend payments per year.