Do MLPs pay a dividend?
MLPs make cash distributions to their partners, usually on a quarterly basis. Each MLP is governed by its partnership agreement that specifies the manner in which cash distributions will be made to its general partner and limited partners. Generally, an MLP’s partnership agreement mandates that it distribute 100% of its available cash flow (defined in the partnership agreements, and often referred to as distributable cash flow) to its unitholders within 45 days after the end of a quarter. Distributable cash flow generally means the amount of cash flow that is available to be distributed to partners after expenses, such as interest payments and maintenance capital expenditures, have been paid. The general partner has the discretion to retain a portion of the distributable cash flow in the partnership in order to meet its needs by making reserves. Most MLPs have fiscal year ends in December; therefore distributions are typically paid in mid-February, May, August and November, as is the c
