Oil and Gas Trusts Do Well With Low Interest Rates

Oil and Gas Trusts Do Well With Low Interest Rates : Oil pipeline master limited partnerships also offer possibilities for higher returns when interest rates are low. These entities make significant profits and pay them out to the investors each and every year. The yields on these are commonly six to seven percent and have been as high as ten to twelve percent. You also do not have to pay taxes on such master limited partnerships until the point that you decide to sell them.

Oil and gas trusts, such as the popular Canadian Oil and Gas Trusts, are another good place to look for higher returns when interest rates remain low. These companies own properties that produce oil and natural gas, as their name implies. They sell these products and disperse all of the profits that remain after operating expenses and new acquisitions.

Yields that run from eight to twelve percent are not uncommon with these entities. These are a far cry better than the near zero percent interest rates that you can get with many fixed income investments today.

If you feel like you must hold on to bonds in low interest rate periods, then you should stick with short term bonds. The prices on these instruments do not change much even when interest rates rise. When you hold the bond until it matures, then you do not have to worry about any changes in the price of the bond, as you would have to with a stock. This will at least provide you with peace of mind that riskier investments might not. For the latest updates PRESS CTR + D or visit Stock Market news Today

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