Updating Buckeye Partners L.P. and Kraft Heinz Co.

BUCKEYE PARTNERS L.P. $67 (www.buckeye.com) is seeing strong demand for its oil-storage terminals as many producers store their crude instead of selling it at today’s depressed prices. However, lower prices are hurting revenue at Buckeye’s wholesaling business, which sells refined fuels, such as gasoline, home… Read More

BUCKEYE PARTNERS L.P. $67 – New York symbol BPL

BUCKEYE PARTNERS L.P. $67 (www.buckeye.com) is seeing strong demand for its oil-storage terminals as many producers store their crude instead of selling it at today’s depressed prices. However, lower prices are hurting revenue at Buckeye’s wholesaling business, which sells refined fuels, such as gasoline, home… Read More

High-yielding MLPs not for everyone

Low interest rates have spurred strong investor interest in these two high-yielding master limited partnerships (MLPs).

Both have strong businesses that give them lots of cash flow for distributions. However, we feel Cedar Fair (see box) is the better choice, because Buckeye’s aggressive growth-by-acquisition strategy… Read More

BUCKEYE PARTNERS L.P. $77 – New York symbol BPL

BUCKEYE PARTNERS L.P. $77 (New York symbol BPL; Income Portfolio, Utilities sector; Units outstanding: 127.0 million; Market cap: $9.8 billion; Price-to-sales ratio: 1.5; Dividend yield: 5.9%; TSINetwork Rating: Average; www.buckeye.com) operates over 9,600 kilometres of pipelines in the northeastern and midwestern U.S. Its network pumps… Read More

High yields come with a tax burden

Canadian investors must pay a 35% U.S. withholding tax on income from master limited partnerships (MLPs) like Buckeye and Cedar Fair. However, you can usually claim a non-refundable Canadian tax credit to offset that withholding tax. As well, MLPs are not suitable for RRSPs or… Read More