If you are looking for a way to find some income in this volatile market, you may want to check out three master limited partnerships, Raymond James’ Darren Horowitz told the “Fast Money” team Thursday.
All three are either in natural gas or crude oil and yield more than five percent.
Here are his picks:
Enterprise Products Partners L.P. is one of the largest MLPs. The company, which deals with natural gas processing, as well as natural gas liquids fractionation and distribution, yields about 5.6 percent.
“Geographically, they’re extremely well-positioned throughout the hydrocarbon supply chain," Horowitz said. “And they are also very vertically integrated.”
What really drives dividend growth higher, he added, is the lower cost of capital and the ability for management to “exercise prudence in allocating capital and drive growth.” And EPD has that, he said.
Targa Resources Partners L.P. is another natural gas play that yields about 6.6 percent. Horowitz likes its natural gas gathering and NGL footprint.
“We think they can grow their distribution over the next couple years at about eight percent,” he added, “and I think this stock is very compelling on a totally return basis.”
Plains All American Pipeline L.P. yields 6.10 percent. The company focuses on supplying logistics for crude oil and the “opportunities to really move crude oil around region to region and capture basis differentials.”
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Trader disclosures for Nov. 3, 2011: JON NAJARIAN: Najarian is long; Najarian is long UTX; Najarian is long GMCR; Najarian is long AKAM; Najarian is long AAPL; Najarian is long IBM call spreads; Najarian is long CME; Najarian is long CBOE; Najarian is long CIGX. STEVE CORTES: Cortes is long Treasuries. Cortes is long K. Cortes is long DNKN. Cortes is short AAPL. Cortes is short DB. Cortes is short BAC. Cortes is short XRT. Cortes is short EURO. Patty Edwards is long XLK. Steve Grasso owns AA, AKS, ASTM, BA, BAC, D, KEG, LIT, MHY, PFE, S and XLU.
PATTY EDWARDS
Trutina Financial is long
Trutina Financial is long ED
Trutina Financial is long EPD
Trutina Financial is long JWN
Trutina Financial is long TGT
Trutina Financial is long ACI
Trutina Financial is long KMP
Trutina Financial is long GLD
Trutina Financial is long PGM
Trutina Financial is long INTC
Trutina Financial is long QCOM
Trutina Financial is long WFM
Trutina Financial is long SBUX
Trutina Financial is long COST
Trutina Financial is long GOOG
Trutina Financial is long AAPL
Trutina Financial is long DRC
Trutina Financial is long ACI
Trutina Financial is long VLO
STEVE GRASSO
Stuart Frankel & Co and it’s partners own (CSCO)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HPQ)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own MET
Stuart Frankel & Co and it’s partners own MU
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own UAL
Stuart Frankel & Co and it’s partners own XRX
CHUCK GROM
Deutsche Bank and/or its affiliate(s) has received non-investment banking related compensation from (Costco Wholesale Corp) this company within the past year
Deutsche Bank (and/or affiliates) owns 1% or more of any class of common equity securities of JC PENNEY COMPANY. JC PENNEY CO. company an Investment Banking client of Deutsche Bank.
Deutsche Bank (and/or affiliates) own 1% or more of any class of SAKS INC. common equity securities.
DARREN HOROWITZ
PD Enterprise Products Partners L.P.
Raymond James & Associates co-managed a follow-on offering of Enterprise Products Partners L.P. shares in December 2010.
Raymond James & Associates received non-securities-related compensation from Enterprise Products Partners L.P. within the past 12 months.
NGLS Targa Resources Partners L.P.
Raymond James & Associates co-managed a follow-on offering of Targa Resources Partners L.P. shares in January 2011.
Raymond James & Associates received non-securities-related compensation from Targa Resources Partners L.P. within the past 12 months.
PAA Plains All American Pipeline L.P.
Raymond James & Associates co-managed follow-on offerings of Plains All American Pipeline L.P. shares in November 2010, March 2011, and August 2011.
Raymond James & Associates received non-securities-related compensation from Plains All American Pipeline L.P. within the past 12 months.
CRAIG BERGER
FBR acts as a market maker or liquidity provider for the company's securities: QCOM.
CNBC.com with wires.
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