The Alerian MLP ETF (NYSEARCA:AMLP) declared its fourth quarter
2012 distribution of $0.256 on Tuesday, November 6th. The dividend
is payable on November 14, 2012 to shareholders of record on
November 9, 2012.
The AMLP Q4 distribution will occur as follows:
Ex-Date: Wednesday, November 7th
Record Date: Friday, November 9th
Payable Date: Wednesday, November 14th
MLPs combine the tax benefits of limited partnerships with the
liquidity of publicly traded securities. Because MLPs are
classified as partnerships, they avoid corporate income tax at both
a state and federal levels. (
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To qualify for MLP status, partnerships must generate at least
90 percent of their income from "qualifying" sources, according to
Internal Revenue Service (
) rules. As a result, MLPs are generally involved in specific
industries like production, distribution, and transportation for
oil, gas and coal.
AMLP is linked to the Alerian MLP Infrastructure Index (see
table below), which is comprised of 25 energy infrastructure MLPs
engaged in transportation, storage, and processing of energy
commodities. The fund's index is a subset of the Alerian MLP Index
and is calculated using a capped, float-adjusted,
In addition to high income, the advantage of MLP ETFs is they
provide diversification, a single Form 1099, no K-1s, and investors
can benefit from return of capital and qualified dividend tax
treatment of distributions.
For MLP income earned in 2012, the tax rateon qualified
dividends is currently 0% for taxpayers in the 10% and 15% ordinary
income tax brackets and 15% for all others.
AMLP charges an expense ratio 0.85% and has a 12-month yield of
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