– you get k-1 with MLPs. Depending on nature of their business, it can be some times mind numbing experience
– hopefully you don’t have them in IRA. There is a rule (UBTI) that comes into play if you do.
– the price of units depends on distribution and distribution growth. Few years back, it was super easy to buy MLP with 8%+ distribution that grew over time. Now not so easy! A quick glance at the prospectus suggests that this will start at 3% ish region. So where it goes from here is entirely depends on what the growth plans are and how greedy the general parter (Valero, who gets paid first) is. I am too lazy to check it out.
– the quality of business matters too. I think pipeline MLPs are best. However recently there has been an explosion oh junk businesses posing as MLPs. The market is simply too hot.
If I were in your shoes, I would sell it but probably not on jan 1st. Maybe see how high the market takes it… Your k-1 for 2013 and 2014 is coming no matter what!
