Plains All American Pipeline LP (PAA)

[wshaw14]

The big risk to the pipeline companies in this environment is Bankruptcies in their client base causing evaporation or restructuring of their fees. Also the distributions are not all return of capital and even the return of capital is not always free from taxes. The return of Capital reduces ones cost basis. Upon the sale of the shares this increases the profits and unless one is in a very low taxable income situation this can raise both their tax bracket and taxes owed. I do like the MLPs and do think the risk reward is excellent, but some folks do not.