Alerian MLP ETF Offers 8.1% Yield, Attracts Income Investors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- High Yield Appeal: The Alerian MLP ETF boasts a 30-day SEC yield of 8.1%, with a distribution yield just below 8% over the past year, demonstrating the fund's ability to provide attractive distributions without leverage, thereby attracting numerous income investors.
- Stable Distribution Record: Since its inception in August 2010, the ETF has averaged over 6.6% yield and has paid distributions for 61 consecutive quarters, showcasing its stable income-generating capability, despite an annual expense ratio of 0.85% that is slightly higher than most index ETFs.
- Growth Potential: Over the past five years, the Alerian MLP ETF has delivered an impressive annualized total return of 25.7%, and while such levels may not be sustainable in the coming years, the ETF is expected to be poised for growth in 2026 and beyond, particularly driven by the boom in data center construction.
- Capital Project Investments: Companies like Energy Transfer LP and Enterprise Products Partners LP, which hold significant positions in Alerian's portfolio, are heavily investing, with Enterprise undertaking $5.1 billion in capital projects, indicating that LNG and AI will drive a major increase in U.S. natural gas demand over the next five years.
Analyst Views on ORCL
Wall Street analysts forecast ORCL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ORCL is 309.59 USD with a low forecast of 180.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
25 Buy
9 Hold
0 Sell
Moderate Buy
Current: 179.920
Low
180.00
Averages
309.59
High
400.00
Current: 179.920
Low
180.00
Averages
309.59
High
400.00
About ORCL
Oracle Corporation offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. The Company operates through three businesses: cloud and license, hardware and service. Its cloud and license business is engaged in the sale, marketing and delivery of its enterprise applications and infrastructure technologies through cloud and on-premise deployment models including its cloud services and license support offerings, and its cloud license and on-premise license offerings. Its hardware business provides infrastructure technologies including Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments. Its services business provides services to customers and partners to help maximize the performance of their investments in Oracle applications and infrastructure technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
