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Stock impact report

Why Canadian investors should avoid MLPs [MoneySense]

TC Energy Corporation (TRP) 
Last tc energy corporation earnings: 5/1 07:30 am Check Earnings Report
US:NYSE Investor Relations: transcanada.com/en/investors
Company Research Source: MoneySense
Common examples include American mortgage real estate investment trusts (m) and business development companies (BDCs). Both tend to be highly leveraged and structurally complex, and the headline yield rarely tells the full story. The same applies to Master Limited Partnerships, or MLPs.What is a master limited partnership?MLPs occupy the midstream segment of the energy sector. This part of the industry focuses on transporting, storing, and processing oil and gas rather than producing or retailing it. Canadian investors are already familiar with midstream businesses through TSX-listed companies like TC Energy and Enbridge. The difference is that these Canadian firms are conventional corporations, not partnerships.An MLP is a U.S.-specific pass-through structure designed to generate income from energy-related assets. By operating as a partnership rather than a corporation, an MLP avoids corporate-level tax and distributes most of its cash flow directly to unitholders. That structure is Show less Read more
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