By: Dividend Sensei
Income investors like retirees love midstream for the high yield but hate MLPs for their K1 tax forms. This ETF offers a 7.5% yield and no K1 tax form.
This ETF is a classic sucker yield trap with steadily falling income and -61% inflation-adjusted returns over 12 years if you took payouts in cash instead of stock.
70% of this ETF is low-quality value traps, and a diversified portfolio of crap is still crap.
Here are six non-K1 high-yield safe midstream blue-chips that yield 5.5%, are 11% undervalued, and analysts expect to deliver 19% returns within a year.
More importantly, they are expected to deliver 13% annual returns, just as they have for the last 32 years, even through the worst oil crash in human history. If you want to retire rich and stay rich in retirement, you need to avoid yield traps like this ETF and trust your savings to world-class companies that deserve it.